Offshore Bitcoin Mining: Taxation and Reporting in Brazil

Someone who lives in Brazil and mines bitcoin through a company abroad remains subject to Brazilian rules. Law 14,754/2023 covers virtual assets abroad and the profits of controlled entities. The tax authority requires crypto-asset reporting. And Law 14,478/2022 regulates virtual asset service providers. Energy costs and profitability depend on local sources.

What does Brazilian law say about bitcoin mining through a company abroad?

None of the rules consulted addresses mining in an offshore structure as a topic of its own. A Brazilian resident is subject to a set of rules that apply to crypto-assets, to controlled entities abroad and to reporting. The table below shows each rule and what it covers.

For the broader picture of crypto outside the country, see the guide to cryptocurrencies and offshore structuring for Brazilians.

Does Law 14,478/2022 regulate bitcoin mining?

Not directly. The law defines a virtual asset as the digital representation of value that can be traded or transferred by electronic means and used for payments or for investment purposes (art. 3). It regulates virtual asset service providers, defined as a legal entity that performs, on behalf of third parties, at least one of the services in art. 5. The list in art. 5 does not mention mining.

The services in art. 5 are:

1. •Exchange between virtual assets and national or foreign currency.
2. •Exchange between virtual assets.
3. •Transfer of virtual assets.
4. •Custody or administration of virtual assets or of instruments that allow control over those assets.
5. •Participation in financial services and services related to the offer or sale of virtual assets by an issuer.

The point of attention is what the operation does beyond mining. If the company holds, exchanges or transfers third parties' assets, the analysis changes. In that case, art. 2 requires prior authorization from a federal body to operate in the country, and art. 4, VII, includes anti-money-laundering prevention among the service guidelines. If the company only mines for itself, whether it counts as a provider depends on the facts and should be confirmed with legal advice.

How does Law 14,754 tax bitcoin and the mining company abroad?

There are two layers: the bitcoin itself and the company's profit. Bitcoin held abroad is treated as a financial investment: art. 3, § 1, I, expressly includes virtual assets and digital wallets, and item II includes, among the income, the change in the cryptocurrency's value against the national currency. The tax is 15% on the annual adjustment, with no deduction from the base (art. 2, § 1), and applies when the income is actually received, such as on redemption, sale or settlement (art. 3, § 2). The classification of virtual assets and digital wallets is set out in the tax authority's regulations (art. 3, § 3).

If the mining is done by a company controlled by the Brazilian (more than 50% of the capital or profits, or preponderance in decisions; art. 5, § 1), the framework of arts. 5 and 6 applies:

Art. 5, § 6, I, excludes from own active income the revenue arising exclusively from royalties, interest, dividends, equity interests, rents, capital gains (with exceptions), financial investments and financial intermediation. The list does not mention mining. If the company also rents out hardware or earns financial income, those amounts can weigh against the 60% test. Because the mining reward appears neither among the exclusions nor in a rule of its own, classification requires an individual opinion.

The tax paid by the foreign controlled entity can be deducted in proportion to the partner's share, without exceeding the tax due in Brazil on that profit (art. 5, § 15). On the choice of country, Law 14,754 bridges to Brazilian taxation: being in a country with favored taxation changes the moment of taxation. The comparison of jurisdictions for offshore structures helps explain this filter.

Does the taxation of the mining reward have a specific rule?

The official sources consulted for this guide (Law 14,478/2022, Law 14,754/2023 and the tax authority's pages on crypto-assets) contain no specific rule on how to tax the reward received from mining. IN RFB 2,291/2025 deals with reporting information on transactions, not with a tax rate.

In practice, this means two precautions:

• •Record the date, the quantity and the value in reais of each reward received.
• •Get an opinion from an accountant experienced in crypto before defining the treatment as income or capital gain.

Which reports must a Brazilian who mines file?

There are four fronts, and they add up.

1. •DeCripto. According to the tax authority's Layout Guidance Manual (version 1.01), IN RFB 2,291/2025 established the Crypto-Asset Declaration, effective from July 1, 2026, replacing the system of IN RFB 1,888/2019. The service page on gov.br, last modified on July 24, 2026, still cites IN 1,888/2019. It says that the individual or legal entity resident in Brazil provides the information when transactions are made on an exchange domiciled abroad or outside an exchange. Confirm with the tax authority which regime applies to your period. The official DeCripto layout lists, among the types of incoming transfer reported by providers, the item "mining income" (CARF503).
2. •Asset declaration (DAA). The tax authority advises declaring crypto-assets at their original acquisition value, not the current value, when the acquisition value is equal to or greater than BRL 5,000.00 for the same type. If the asset is abroad, the foreign assets field is used. The page does not detail the acquisition value of crypto-assets obtained through mining.
3. •Controlled entity profit. When the company is taxed on December 31, the profit goes into the DAA and the dividend receivable credit goes into the assets and rights form (Law 14,754, art. 5, § 10, III and IV).
4. •CBE. The Central Bank requires the declaration of Brazilian capital abroad from anyone holding assets that total US$ 1 million or more on December 31.

What are the energy costs and profitability of offshore mining?

This guide does not give energy figures or profitability, because no official source applicable to all cases supports those numbers. Energy cost depends on the local contract, and the return depends on hardware, asset price and network conditions. Any promise of profit without a source should be discarded.

To gather this data safely, consult the official government sources of the country where you plan to operate directly:

• •Energy regulator: tariffs, large-consumer contracts and rules for intensive electricity use.
• •Company registry: requirements for incorporation, substance and beneficial ownership.
• •Virtual asset and anti-money-laundering authority: whether the activity needs a license or registration.
• •Local tax authority: taxes on the activity and, where they exist, rules on digital assets.

Only name a country as a destination after confirming this information from its official source. For bank onboarding and account opening, see the offshore banking service.

What compliance and money-laundering precautions apply?

The structure needs to be traceable. Law 14,478/2022 places the prevention of money laundering and terrorist financing among the guidelines for the virtual asset service (art. 4, VII). Law 9,613/1998, in art. 10, II, includes virtual assets among the assets whose transactions above the limit set by the authority must be recorded by obligated parties. Art. 1 punishes with imprisonment of 3 to 10 years and a fine anyone who conceals or disguises the origin of assets arising from a criminal offense. Art. 44 of Law 14,754, in turn, requires companies that operate in the country with virtual assets, regardless of domicile, to provide periodic information on their activities and their clients to the tax authority and to Coaf.

It is also worth checking sanctions. Anyone who receives payments, sells hardware or uses services from counterparties abroad should consult the official lists. The guide on international sanctions and offshore entities explains Law 13,810/2019, OFAC and the 50% rule. To build the structure's compliance program, see the compliance service.

How do you organize a mining operation with a structure abroad?

1. •Define who the owner is: an individual, a controlled company or a third party, and who holds the ownership of the hardware and the rewards.
2. •Test the company against art. 5, § 1 (control), § 5 (favored country and own active income) and § 6 (excluded revenue).
3. •Confirm the destination country's energy, license and local tax rules from an official source.
4. •Check whether the operation performs services for third parties and, if so, how it fits under Law 14,478/2022.
5. •Record each reward received and each transfer, with date, quantity, value in reais and wallet.
6. •Plan the filings: DeCripto, DAA, assets and rights form and CBE, when required.