Starting June 12, 2025, Brazil will implement a new tax on crypto gains that will affect both retail and institutional investors, as part of broader financial reforms in the country.
New Tax in Brazil
On June 12, 2025, Brazil will introduce a flat tax rate of 17.5% on all crypto gains. This marks the end of previous exemptions, significantly affecting both retail and institutional investors by subjecting all crypto gains to taxation.
Impact on Investors
The new tax will apply to all digital assets, including BTC, ETH, and NFTs. Retail investors will face higher tax liabilities due to the removal of the previous monthly exemption, while institutional investors may experience improved tax efficiency. The change will lead to a redistribution of investor strategies and increased tax compliance costs.
Global Context and Consequences
The global crypto community is closely watching Brazil's tax reform, noting similarities with moves in countries like Portugal and the UK. This flat tax may lead to reduced local DeFi activities, while registered exchanges may see increased engagement due to compliance with central bank rules.
The introduction of a 17.5% tax on crypto gains in Brazil reflects global trends toward stricter regulatory measures for digital assets and may substantially alter investment strategies within the country.
