Brazil sets flat 17.5 percent tax on all crypto gains
Gains from NFTs, DeFi, and staking are now fully taxed in Brazil as part of its sweeping 2025 digital asset tax reform.
Brazil has implemented a significant shift in its approach to digital assets with a new crypto tax law taking effect on 12 June 2025. Under Provisional Measure 1303, a flat 17.5% tax now applies to all cryptocurrency gains, replacing the former progressive regime.
The previous exemption for monthly gains under 35,000 reais has been abolished, placing new pressure on small and casual traders.
The law’s reach is extensive, applying not only to traditional crypto trades but also to decentralised finance (DeFi), NFT transactions, staking rewards, and offshore wallets. Gains are now reported quarterly, with losses deductible over the past five quarters — a period that shortens in 2026.
Smaller investors are the most brutal hit, now fully taxed on previously exempt profits. Meanwhile, high-net-worth individuals could benefit, as gains that once faced a 22.5% rate are now capped at 17.5%.
The reform forms part of Brazil’s 2025 tax overhaul to expand the fiscal base amid record tax levels. Crypto may further integrate into Brazil’s economy, with payroll in digital assets under review and stricter monitoring ahead.
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