Brazil is taxing cryptocurrency profits at a fla

Starting June 12, a 17.5% capital gains tax applies to all crypto transactions, regardless of the value or volume, as part of Provisional Measure 1303, introduced by the federal government to increase revenue from financial market activities.

Under the new regulations, taxation applies to crypto assets held in self-custody wallets and digital assets stored overseas. Brazilian investors must now declare all gains quarterly, with the ability to offset losses from the previous five quarters. However, this offset window will be reduced from 2026 onward.

Previously, Brazilians could sell up to 35,000 reais (approximately $6,300) worth of crypto per month without paying income tax. Larger transactions activated a tiered tax structure starting at 15% and topping out at 22.5% for those moving over 30 million reais annually.

The flat 17.5% rate now standardizes this burden, reducing the effective rate for high-net-worth investors while increasing it for smaller traders.

This tax overhaul arrives at a time when Brazil, already Latin America’s largest crypto market and ranked among the world’s top 10 in terms of adoption, is actively pursuing broader crypto integration, from regulated salary payments to a proposed sovereign Bitcoin reserve.