If you hold dollar-based investments such as international stocks and ETFs, offshore investment funds, international fixed income, or cryptocurrencies on foreign exchanges — stay alert. You’ll likely pay more taxes this year.
The new Offshore Law — Law 14.754/2023 — officially came into effect on January 1st, and these types of investments have become more expensive for investors.
The key change is that investors must now calculate and pay taxes annually on exchange rate gains, even if they haven’t repatriated or have no available funds to cover the tax.
In general, “stock picking” structures (direct selection of assets) for individuals have become more costly and less efficient, since income tax filing will now involve more complex calculations and additional costs.
If your financial portfolio includes these types of assets, it’s worth checking with your financial institution to understand how these changes will affect your bottom line.
Don’t wait until tomorrow!
