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New Brazil crypto tax 2025
On June 12, 2025, Brazil enacted an extensive new cryptocurrency tax regulation under Provisional Measure 1303.
This supersedes the former progressive taxation framework, implementing a standardized 17.5% crypto tax on all capital gains — irrespective of the amount earned or where the assets are managed. The regulation abolishes the prolonged exemption that permitted individuals to transmit up to 35,000 Brazilian reais (~$6,300) in crypto each month without tax obligations.
This new Brazil crypto tax 2025 is inclusive of all sectors — whether your assets are hosted on domestic or international exchanges, in self-custodied wallets, or spanning decentralized finance (DeFi), non-fungible tokens (NFTs), or staking platforms.
All digital asset activities are now within the taxation range. Tax assessments occur quarterly, and losses can be carried forward for as many as five preceding quarters — a timeframe that will be condensed in 2026.
Did you know? Brazil’s overall tax load reached 32.32% of GDP in 2024, the highest level in 15 years, creating substantial fiscal incentive for the broad Brazil tax reform 2025, which includes the new crypto tax regulation.
Previous crypto tax rules in Brazil
Up until now, crypto capital gains in Brazil were subjected to a tiered taxation structure.
Minor transactions enjoyed a favorable exemption, while larger earnings were taxed progressively:
- Trades up to 35,000 reais/month were exempt from crypto tax — perfect for small investors and casual traders.
- After that threshold was surpassed, the following brackets were in place:
- 15% tax on gains up to 5 million reais
- Up to 22.5% for gains exceeding 30 million reais (~$5.4 million).
This resulted in hobbyists generally paying nothing, medium-scale traders facing moderate rates, and only the largest investors encountering top-tier taxation.
Crypto tax impact small investors — Crypto tax exemption eliminated
The most immediate effect of the new crypto tax regulations in Brazil affects everyday users. Casual traders who previously kept below the 35,000-real monthly limit are now fully taxed at 17.5%. For instance, a modest 30,000-real profit — which was previously exempt — now incurs a 5,250-real liability.
This flat-rate model impacts small investors and gig-economy traders the hardest. The simplicity and convenience of the exemption have disappeared, replaced by full liability, even for infrequent users.
Impact on medium and large investors: New crypto tax policy Brazil
Under the former regime, medium-scale investors paid a manageable 15% on gains below 5 million reais. They now encounter a 17.5% tax.
However, for high-net-worth traders, the new framework can actually lessen the tax load. Previously, gains above 30 million reais were taxed at 22.5%. Now, that is limited to 17.5%, resulting in significant savings for larger positions. For some, this reform is a boon.
Did you know? In the initial nine months of 2024, Brazil’s net crypto imports surged over 60% year-over-year, already exceeding 2023’s total volume, indicating a rapidly growing demand and capital influx into the crypto ecosystem.
Brazil’s 2025 tax reform expands to crypto, DeFi, NFTs and offshore assets
Brazil’s cryptocurrency tax regulation is part of a broader Brazilian tax reform 2025 that broadens the tax base across both traditional and digital assets.
Offshore and self-custodied crypto
The 17.5% flat tax now additionally applies to digital assets managed outside of centralized Brazilian exchanges — whether within offshore accounts or self-custody wallets. This addresses a significant loophole that previously permitted avoidance through foreign platforms or cold storage.
DeFi, NFTs and crypto staking
The law specifically includes new sections such as DeFi lending, staking rewards, and NFT transactions. Earnings from yield farming or NFT sales are now taxed as any other crypto gain. These previously ambiguous areas are now entirely regulated.
Traditional finance: Fixed-income and betting
Provisional Measure 1303 also introduces:
- A new 5% tax on fixed-income investments such as LCIs, LCAs, CRIs, CRAs, and other previously tax-incentivized bonds.
- Increased rates for the betting industry: Brazil’s online betting tax will rise from 12% to 18% on gross gaming revenue starting October 2025.
How Brazil compares to other countries on crypto taxes
Brazil’s uniform 17.5% crypto tax under MP 1303 positions it in the midst of the global spectrum — stricter than tax havens but far more permissive than nations with harsh rates.
International crypto tax landscape
In India, crypto capital gains are subjected to a steep 30% flat tax, in addition to a 1% tax deducted at source (TDS) and no option to offset losses, making it one of the toughest regimes globally.
Japan’s crypto tax system is similarly aggressive: Profits are categorized as miscellaneous income, with rates escalating to 55% based on the investor’s overall income.
On the opposite end, nations like the United Arab Emirates, Switzerland, and El Salvador offer 0% capital gains tax on personal crypto holdings. These zero-tax jurisdictions attract high-volume traders and crypto startups, but Brazil has chosen a balanced approach — imposing taxes while not stifling the market.
In this context, Brazil’s cryptocurrency tax regulation appears more equitable. It generates revenue while remaining competitive on a global scale, especially when evaluated against extreme international crypto tax scenarios.
Did you know? A notable Brazilian parliament member has already suggested exempting long-term Bitcoin holders from crypto capital gains tax, recognizing BTC as a strategic store of value, signaling early legislative pushback against MP 1303.
What prompted the recent cryptocurrency tax regulation in Brazil?
The implementation of MP 1303 represents a significant step in Brazil’s fiscal approach.
Previously, the administration tested increasing the IOF tax, a levy on financial operations that briefly surged for credit and FX transactions. The increases elicited strong reactions from markets and regulators, leading to a withdrawal.
Instead of persisting with fragmented tax increases, Brazil has now chosen to pursue a structural overhaul. The initiative to impose taxes on digital assets, fixed-income securities, and online gambling revenues signifies a broader Brazilian tax reform anticipated in 2025, aimed at expanding the tax base with more permanent and enforceable regulations.
What lies ahead for cryptocurrency taxation in Brazil?
From enhanced enforcement to payroll advancements, here’s what investors, businesses, and regulators can anticipate next in Brazil.
1. More rigorous reporting and on-chain surveillance
The Receita Federal is preparing to broaden its supervision, particularly concerning offshore accounts and self-custodial wallets. Anticipate improved data reconciliation between tax declarations and on-chain activities, especially as Brazil starts to collaborate more closely with global tax organizations.
2. Loss-carryforward period shortens in 2026
Currently, investors can offset losses across five prior quarters — a measure intended to alleviate volatility. However, starting in 2026, this crypto tax loss carryforward duration will condense, pressuring minor investors to realize losses in 2025 for optimal advantage.
3. Cryptocurrency payroll: Earnings in digital currencies
Proposed legislation could permit Brazilian firms to compensate up to 50% of employee wages in crypto. International contractors and freelancers might even receive complete compensation in digital currencies, provided that payments are processed through authorized exchanges for conversion at established rates. This paves the way for crypto to transition from an investment medium to a wage standard, at least for certain individuals.
4. Fintechs adopt Bitcoin as treasury asset
Despite the introduction of new taxes, corporate crypto adoption persists. The Brazilian fintech Méliuz, for instance, secured 180 million reais (~$32 million) in mid-2025 and has emerged as one of Latin America’s largest public Bitcoin holders (BTC), now retaining nearly 600 BTC. This reflects global trends where private companies utilize Bitcoin as a strategic safeguard despite increasing crypto tax obligations.
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