Brazil just made crypto investing a bit more expensive. They’ve simplified their crypto tax system, ditching the old tiered system for a flat 17.5% tax on all profits.
Goodbye, Tax Breaks
Previously, Brazilians could sell up to R$35,000 (around $6,300) worth of crypto each month tax-free. That’s gone now. Everyone pays the same 17.5% tax on any profit, regardless of how much they trade.
Winners and Losers
This change hits smaller traders the hardest. Someone selling R$30,000 worth of crypto last month paid nothing before; now they owe a hefty R$5,250. Larger traders, however, might actually save money. Previously, those trading over R$30 million a month faced a 22.5% tax rate; now it’s a flat 17.5%. Those trading over R$30 million could save up to R$150,000 for every R$1 million traded.
Keeping Track of Your Crypto
The new rules apply to all crypto holdings, whether in your own wallet or overseas. Taxes are calculated quarterly, and you can deduct losses from the previous five quarters (this window shrinks to a shorter period in 2026). This means better record-keeping is crucial.
Beyond Crypto: Other Changes
This tax change isn’t just about crypto. Other investments like fixed-income papers (LCAs, LCIs, CRIs, and CRAs) now have a 5% profit tax, and betting operators now face an 18% tax (up from 12%).
The Government’s Goal
The government hopes this new system will bring in more consistent tax revenue after a previous attempt to raise taxes failed.
Crypto Salaries? Maybe.
Separately, there’s a bill allowing employers to pay up to 50% of an employee’s salary in crypto. Foreign workers could potentially receive 100% crypto pay under specific conditions, but regular workers will still get paid mostly in fiat currency. All crypto payments would use the official exchange rate from approved platforms.
