Crypto Abroad: Tax and Reporting for Brazilians (Law 14,754)

Crypto assets held outside Brazil, in your CPF or in a company abroad, remain subject to Brazilian income tax. Law No. 14,754/2023 (Lei 14.754/2023) includes virtual assets among financial investments abroad (art. 3, § 1, I), taxed at 15% in the annual adjustment (art. 2, § 1). A company controlled abroad may be taxed on December 31 (art. 5).

How does Law 14,754 tax crypto assets held abroad?

The law treats virtual assets and digital wallets abroad as financial investments (art. 3, § 1, I). Earnings go into the Annual Adjustment Return (DAA), separate from other income, at a 15% rate on the annual amount and with no deductions from the base (art. 2, § 1).

Two points in the text of the law weigh on those who hold crypto:

• •The change in the cryptocurrency's value against the real counts as earnings (art. 3, § 1, II).
• •The tax applies when the earnings are actually received: on redemption, sale, settlement or another form of realization (art. 3, § 2).

Art. 3, § 3, says that the classification of virtual assets and digital wallets is set out in the Federal Revenue Service's regulations. So, for a specific type of asset (governance token, NFT, protocol-issued asset), confirm the treatment with an accountant before declaring. Law No. 14,478/2022 (Lei 14.478/2022), which defines virtual asset, does not mention NFTs.

Art. 4 allows deducting from IRPF the tax paid in the country where the income originated, but only if the conditions of the article itself are met. Do not count on this credit without checking the case.

What if the crypto assets are held in a company abroad?

If you control the company, the rule changes from "investment earnings" to "controlled entity profit." Art. 5, § 1, considers a controlled entity one in which the individual has decision-making power or more than 50% of the capital or profit rights, alone or with related persons.

Profit is taxed on December 31 of each year, and not only when distributed, if the controlled entity falls into one of these cases (art. 5, § 5):

1. •it is in a favored-taxation country or dependency, or benefits from a privileged tax regime (arts. 24 and 24-A of Law No. 9,430/1996 (Lei 9.430/1996)); or
2. •it earns own active income below 60% of total income.

An entity that merely holds crypto assets tends to have investment revenue, capital gains or interest, which art. 5, § 6, I, lists as revenue that does not count as own active income (the paragraph has exceptions, such as gains on the sale of a permanent asset held for more than 2 years). Anyone with this profile should assume they fall under the December 31 rule until an accountant shows otherwise.

The rate remains the one in art. 2 (15%). § 11 prevents new taxation of profit already offered to tax when it is distributed later. Art. 8 allows you to choose to declare the controlled entity's assets as if they were your own, irrevocably for as long as you hold the entity.

If your case is large-scale mining, see bitcoin mining through an offshore structure. This article covers holding and trading assets, not operating mining.

Which declarations apply to crypto assets abroad?

There are three fronts: the annual income tax return, the declaration of crypto asset transactions to the Federal Revenue Service, and the declaration of Brazilian capital abroad to the Central Bank. They are independent. Complying with one does not excuse the others.

Annual Adjustment Return. Earnings and profits under Law 14,754 go in the DAA, under art. 2. See also the guide on how to declare an offshore company on the income tax return.

DeCripto (IN RFB 2.291/2025). The normative instruction revoked IN RFB 1.888/2019 and IN RFB 1.899/2019 (art. 18), effective July 1, 2026. Art. 5, II, requires an individual or entity resident in Brazil to provide information when operating through a provider resident abroad, a decentralized platform, or no provider. This duty applies whenever the monthly value of operations, alone or combined, is greater than BRL 35,000.00 (art. 5, § 3). Art. 12 sets monthly and annual filings, and art. 13 provides a late penalty of BRL 100.00 per month or fraction for individuals. The content of each filing is in the DeCripto Layout Guidance Manual (Manual de Orientação do Leiaute da DeCripto), published by the Federal Revenue Service.

Brazilian capital abroad (CBE). BCB Resolution 279/2022, which regulates Law No. 14,286/2021 (Lei 14.286/2021), lists virtual assets among the information that must be provided (art. 7, IX) and, since February 2, 2026, says that Brazilian capital abroad operations in virtual assets follow the resolution (art. 1, § 2). The annual declaration is required when capital abroad on December 31 totals US$ 1,000,000.00 or more (art. 10). A stake in a nonresident company also counts (art. 7, I). Dates and penalties are on the CBE page at the Central Bank.

If the asset is in a self-custody wallet, with no custodian, the rule does not define where it is considered "held." Confirm with the CBE page or with a specialist how to count that balance.

Does a foreign exchange or a self-custody wallet change anything?

It changes how the asset is tracked, not the duty to declare. Law 14,478/2022 says that virtual asset service providers can only operate in Brazil with prior authorization from a federal body (art. 2) and defines as services the exchange, transfer, custody and management of virtual assets (art. 5). It does not replace the investor's duty to declare what is held abroad.

Art. 44 of Law 14,754 requires companies operating in Brazil with virtual assets, regardless of domicile, to provide periodic information about their activities and clients to the Federal Revenue Service and Coaf (Brazil's financial intelligence unit). In practice, assume the Federal Revenue Service may receive data about your account.

Does a structure abroad reduce tax or protect assets?

It depends on the case, and there is no guarantee. Law 14,754 was designed to reach earnings and profits abroad. A passive company or one in a favored-taxation jurisdiction generates annual taxation, and the structure brings its own costs for maintenance, accounting and declarations.

There is no "right" jurisdiction for crypto that works for everyone. The choice depends on where the exchange and custody are, who controls the entity and how the country is classified on the favored-taxation list. Before choosing, ask for the country's legal basis and check the classification in the Federal Revenue Service rules. To understand the pieces, see international holding for estate planning and offshore trust for Brazilians.

If the conversation is about structure, the corporate structures and tax planning services start with a diagnosis of what you already have and what you need to declare.

What is the risk of holding crypto assets abroad without declaring them?

Besides the tax owed, there are consequences in each area. DeCripto provides a late penalty. The CBE provides a penalty for noncompliance. And Law No. 7,492/1986 (Lei 7.492/1986), art. 22, sole paragraph, punishes anyone who keeps deposits abroad not declared to the competent federal office, with imprisonment of 2 to 6 years and a fine.

Whether that provision reaches a specific crypto asset is a question of legal classification that a lawyer should assess in your case. The practical point: regularize before being notified. For data exchange between countries, see the article on CRS and automatic exchange of information.