Brazil’s crypto tax grab signals the end of an era

Brazil’s new crypto tax law, effective June 12, 2025, imposes a flat 17.5% tax on all capital gains from digital assets.

This replaces the previous progressive tax regime that exempted monthly gains under 35,000 reais, now ending tax breaks for small and casual investors. While high-net-worth investors may benefit from a reduced top rate (down from 22.5%), smaller investors face significantly higher tax burdens.

Brazil’s move is part of a larger 2025 tax reform aimed at boosting government revenue and signals the end of the era of tax-friendly crypto investing both locally and globally.

This change reflects a broader global trend where governments increasingly treat cryptocurrencies as taxable financial assets, tightening regulations and expanding tax bases. Countries like Portugal have also recently introduced or raised crypto taxes after periods of tolerance.

Brazil’s tax grab on crypto is thus seen as the beginning of the end for favorable tax conditions for retail crypto investors worldwide. The reform also includes discussions on integrating crypto payroll payments and stricter monitoring of the crypto economy, highlighting a new phase of closer government control over digital assets.

This crypto tax law marks a significant policy shift.

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