NFT Royalties in an Offshore Structure: Rules for Brazilians

An offshore structure does not put NFT royalties out of reach of Brazil's tax authority: anyone living in Brazil declares what they receive here. If the income comes from a foreign controlled entity, Law 14,754/2023 applies, with 15% on the annual adjustment. If there are crypto-asset transactions, Normative Instruction RFB 2,291/2025 created DeCripto, with its own reporting rules.

What does Brazilian law say about NFTs and crypto-assets?

Law No. 14,478/2022 (Lei 14.478/2022) does not mention NFTs. It sets guidelines for virtual asset service providers and defines a virtual asset as a digital representation of value that can be traded or transferred by electronic means and used for payment or investment. Whether an NFT fits that definition depends on the specific case.

The law itself sets limits. It does not apply to assets that represent securities, which follow Law 6,385/1976 and fall under the authority of the CVM, Brazil's securities regulator (art. 1, sole paragraph). It also excludes, among others, electronic money and instruments that only give access to products or services, such as loyalty points (art. 3). An NFT that works as a ticket or license may fall outside the concept. An NFT sold with a promise of financial return calls for a securities analysis.

On the tax authority's side, the rule is more direct. The annex to IN RFB 2,291/2025 defines a "reportable non-fungible crypto-asset" as a crypto-asset that cannot be exchanged for another of the same kind, quantity and quality, or whose referenced asset is also unique. In practice, an NFT fits this category when it is used for payment or investment.

How does Law 14,754/2023 treat virtual assets held abroad?

Law No. 14,754/2023 (Lei 14.754/2023) includes "virtual assets" and "digital wallets" among the examples of foreign financial investments (art. 3, § 1, I) and counts the change in the cryptocurrency's value against the real as income (art. 3, § 1, II). The tax is 15% on the annual adjustment, with no deductions (art. 2, § 1).

There is an important caveat: § 3 of art. 3 says that the classification of virtual assets and digital wallets as foreign financial investments is set out in the tax authority's regulations. So do not treat every NFT collection as an "investment" without checking the rule in force. For gains on assets and rights abroad that are not financial investments, art. 2, § 2, refers to the specific rules of art. 21 of Law 8,981/1995.

The same statute requires companies that operate in Brazil with virtual assets, regardless of where they are domiciled, to provide periodic information to Brazil's Federal Revenue Service (Receita Federal) and to Coaf, the financial intelligence unit (art. 44). The obligation therefore also reaches foreign companies that operate in Brazil with virtual assets.

How are the royalties from an NFT taxed?

It depends on who receives them and on the nature of the gain. A resale royalty is the portion of the price that the smart contract passes on to the creator. Someone who receives it personally, someone who receives it through a controlled entity and someone who receives it through a Brazilian company follow different paths, and IN 2,291 says that taxation follows the specific legislation (art. 16).

When royalties pass through a controlled entity, the critical point is art. 5, § 6, I, of Law 14,754. It defines own active income as income earned from the controlled entity's own economic activity, excluding income arising exclusively from royalties, interest, dividends, rents, financial investments and similar items. A controlled entity that only collects royalties usually has difficulty reaching 60% active income. In that case, the profit is taxed on December 31, even without distribution (art. 5, § 5, II).

If the controlled entity does not fall under the cases in § 5, the profit is taxed when it is made available to the partner, that is, upon payment, credit, delivery, use or remittance, whichever occurs first (art. 6, II and sole paragraph). To compare with other intellectual property regimes, read about IP Box regimes.

What does the tax authority require from those who operate crypto-assets in 2026?

IN RFB 2,291, of November 14, 2025, established DeCripto and revoked INs RFB 1,888/2019 and 1,899/2019 (art. 18). The effects of the revocation apply from July 1, 2026, under art. 19, II. Anyone still following the old rule should update their procedure.

Art. 5, II, requires an individual or entity resident in Brazil to report transactions made through a provider resident abroad, through a decentralized platform or without a provider. In those cases, § 3 requires the information whenever the monthly value of the transactions, alone or combined, exceeds BRL 35,000.00. The filing deadlines are in art. 12: monthly, by the last business day of the following month, and annual, by the last business day of January, depending on the type of information.

Filing late results in a fine. For individuals, art. 13, I, c, sets BRL 100.00 per month or fraction. Entities pay BRL 500.00 or BRL 1,500.00, depending on their classification. DeCripto is filed through the Coleta Nacional system, in e-CAC (art. 3). It only reports the transactions. The tax follows the specific legislation.

What precautions should you take when setting up a foreign entity for NFTs?

First, define who holds the copyright and who signs with the marketplace. If the foreign entity only receives the money and the Brazilian creator controls everything, the economic substance of the operation remains in Brazil. Document who creates, who decides and who bears the risks, and keep contracts and wallet statements.

Second, tie each flow to the right rule. The initial sale, the resale royalty and the sale of an asset can be treated differently. The classification of each should appear in the contract and in the accounting. To understand how we design the corporate setup, see corporate structures, the article on cryptocurrencies and offshore structuring and the one on CFC rules.

Third, treat compliance as part of the project, not as a final step. The international compliance and tax planning services help build the filing calendar before the first sale.