📊 Crypto Tax Shake-Up: Thailand Opens Doors While Brazil Closes In

As governments grapple with how to regulate cryptocurrencies, a growing divide is emerging in global tax policy. This week, Thailand and Brazil made headlines for taking opposing stances; Thailand welcomed crypto traders with tax incentives, and Brazil tightened the noose on crypto gains.

For digital nomads, freelancers, and remote entrepreneurs navigating cross-border finances, these shifts are more than just news. They represent real challenges and opportunities for building sustainable, mobile lifestyles.

Thailand: A Bold Move to Attract Crypto Capital

Thailand's Ministry of Finance announced a five-year capital gains tax exemption on crypto sales conducted via licensed exchanges from January 2025 to December 2029. This policy applies to individuals trading cryptocurrencies like Bitcoin and Ethereum, provided the transactions occur through government-recognized platforms.

The exemption forms part of Thailand’s broader strategy to position itself as a regional fintech hub. Over the past few years, the country has taken proactive steps to regulate crypto markets, introducing licensing regimes, implementing FATF-aligned anti-money laundering measures, and enabling sandbox experimentation for blockchain startups.

The government believes this new policy will:

• Attract crypto entrepreneurs and fintech startups
• Increase trading volumes and liquidity in the local market
• Encourage tax-compliant behavior while still fostering innovation

Thailand is not alone. Countries like Portugal and the UAE have also sought to use favorable tax regimes to court crypto talent and capital. But Thailand’s new exemption stands out for its duration, scope, and clarity.

Brazil: From Incentives to Enforcement

In contrast, Brazil has ended its longstanding tax exemption for small crypto traders. Under a new Provisional Measure, the government introduced a flat 17.5% capital gains tax on all digital asset profits, regardless of transaction size, effective June 12, 2025.

Previously:

• Individuals were exempt from tax if they sold less than R$35,000 (~$6,300) worth of crypto per month.
• Gains were taxed progressively beyond that, ranging from 15% to 22.5%.

Now:

• The flat rate applies to all investors, including those with self-custody wallets or offshore holdings.
• Loss deductions are limited to a five-quarter window, beginning in 2026.

This policy shift is part of a broader campaign by Brazil’s finance ministry to raise revenue by taxing financial markets more aggressively, including crypto, bonds, and even betting platforms.

The irony? High-volume traders may actually pay less than before due to the flat structure, while everyday users shoulder a higher relative burden. This has sparked debate among lawmakers, some of whom have introduced bills seeking to reverse or soften the new rules.

🔍 Why It Matters for Digital Nomads

Crypto has long been favored by digital nomads for its portability, decentralization, and borderless nature. But the days of assuming tax-free gains are over. Governments worldwide are:

• Requiring KYC and reporting from exchanges
• Expanding taxation to self-custodied wallets
• Enforcing residency-based tax obligations

For nomads:

• Thailand presents a clear, structured opportunity for compliant crypto gains without short-term tax exposure.
• Brazil serves as a cautionary tale of tightening rules and eroding flexibility, especially for those without formal tax planning.

✅ What You Can Do

If you're transacting in crypto while living abroad, this is your reminder to:

• Understand your tax residency and reporting obligations
• Use licensed platforms that offer clear compliance channels
• Consider tax treaties, capital gains rules, and holding periods when building your crypto strategy

With new crypto policies announced almost monthly, staying ahead of tax changes is no longer a niche concern; it’s a survival strategy for modern, mobile workers.

Let Heavnn help you structure a compliant, crypto-friendly setup across borders. As regulation evolves, so should your strategy!

Check out our other articles in our Global News section for more updates and guides on the latest digital nomad trends.