Brazil President Approves Overseas Crypto Tax Law: What You Need to Know
In a landmark decision, Brazilian President Luis Inácio Lula da Silva has approved a new law impacting cryptocurrency holdings overseas. This significant development means Brazilian nationals will now be subject to taxes on their crypto assets held on foreign exchanges. The President signed the bill into law on December 12, 2025, marking a turning point in Brazil's approach to crypto taxation.
Key Details of the Brazil Overseas Crypto Tax Law
Effective January 2026, the new regulations introduce a flat 15% tax on crypto profits earned on foreign sources. This follows the Senate of Brazil's ratification of new income tax rules on November 29, 2025.
According to President Luis Inacio Lula da Silva, the legislation addresses the taxation of transactions involving cryptocurrencies conducted by Brazilians abroad. This aims to bring greater transparency and regulation to the burgeoning crypto market.
Significantly, an exemption is in place. Crypto profits up to 6,000 Brazilian reais (approximately $1,200) will be exempt from taxation. However, income earned above this threshold will be subject to the 15% tax.
Understanding the Impact
Brazilian citizens holding crypto assets overseas will need to understand and comply with these new regulations. The law requires declaring and paying taxes on profits earned from crypto investments held on foreign exchanges.
The President's approval of this bill represents a significant step towards regulating the crypto landscape in Brazil, aligning it with international standards. The new law, signed on December 12, 2025, aims to capture revenue from a previously untaxed asset class.
Summary
- Brazil President Approves: President Luis Inácio Lula da Silva signed the overseas crypto tax law.
- Tax Rate: A flat 15% tax on crypto profits earned on foreign exchanges.
- Effective Date: January 2026.
- Exemption: Profits up to 6,000 Brazilian reais (approximately $1,200) are exempt.