Key Takeaways
- Brazil is scrapping its crypto tax exemption for small investors.
- A flat 17.5% capital gains tax now applies across the board, starting June 12.
- The move is part of a broader push to raise revenue through financial asset taxation.
Brazil is tightening the screws on crypto investors — and this time, even small traders aren’t being spared.
A new government policy has officially ended the long-standing exemption on crypto gains of up to R$35,000.
That means all crypto profits will now be taxed, no matter how small.
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Brazilian Government Introduces New Crypto Tax Slabs
Starting June 12, a flat 17.5% capital gains tax kicks in for a wide range of investors, including those trading at volumes as low as R$5 million.
The new rules are part of Provisional Measure 1303 , Brazil’s latest legislation to bring in more revenue from financial assets, and crypto is firmly in the crosshairs.
Brazil’s updated crypto tax policy introduces the following capital gains tax brackets:
- 17.5% for crypto volumes between R$5 million and R$10 million.
- 20% for R$10 million to R$20 million.
- 22.5% for anything above R$30 million.
However, the big shift is that these rates now apply to all investors, including those who previously fell under the exemption threshold.
The tax applies across the board — to domestic and overseas crypto, whether held on an exchange or in self-custody.
That means holding your tokens in a cold wallet or foreign exchange won’t help you dodge the taxman.
Tax reporting will happen quarterly, with losses from the past five quarters allowed to offset gains, although that leeway will be tightened starting in 2026.
Companies have different rules and cannot use crypto holdings to write off business losses.
Global Crypto Tax Trends Are Shifting
Brazil isn’t alone. Governments around the world are revisiting crypto tax policy as digital assets go mainstream and become a growing source of tax revenue.
Some countries, like India, have taken a hardline stance with a 30% tax on crypto profits and a 1% TDS on each trade.
Others, like Japan and Denmark , have even steeper rates, ranging up to 55%.
On the other hand, pro-crypto jurisdictions like the UAE, Switzerland, Bermuda, and El Salvador have a 0% tax on crypto gains, using favorable tax rules to attract startups and talent.
Brazil’s new rules place it somewhere in the middle — not as aggressive as India or Japan, but certainly no longer a tax haven for crypto investors.
For Brazilian traders, it’s a clear sign: crypto is no longer in the shadows, and the window for tax-free profits is officially closed.
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