Crypto Taxes Portugal: Expert Guide for Citizens & Digital Nomads [2024]

Portugal is now taxing cryptocurrencies since new rules were put in place in the 2023 “Orçamento de Estado,” but it remains one of the most crypto-friendly countries in the world.

Cryptocurrency gains can be tax-free in Portugal with the new rules, but you can also be taxed at a fixed rate of 28%, depending on the situation. Moreover, crypto income can also be taxed at different rates!

Let’s cover how crypto taxes work in Portugal, how to report Portuguese crypto taxes, how crypto income is taxed, what changed for digital nomads, and much more!

Is crypto tax-free in Portugal?

Crypto is tax-free in Portugal if you hold your cryptocurrency for over 365 days before selling it for FIAT (e.g., Euros). In that case, you won’t be taxed on your crypto gains. If you sell it before one year has passed, then you’d get taxed.

When are cryptocurrencies taxed in Portugal?

Cryptocurrencies are taxed in Portugal when you realize gains into FIAT (e.g., EUR) or when you receive crypto income like mining rewards at the time you received them.

Are crypto-to-crypto trades taxed in Portugal?

With the new crypto tax changes in Portugal, any crypto-to-FIAT (e.g., crypto to Euros) is taxed at 28%, with crypto-to-crypto trades not being taxed under the new regime.

Investors can buy any crypto with FIAT, do as many crypto-to-crypto trades as they want, and then convert to FIAT, with taxes occurring at the time of that final conversion from crypto to Euros.

Are you taxed when converting crypto to euros or when sending to your bank account?

The taxable event is when crypto is converted to FIAT (e.g., EUR). If you did that conversion but kept Euros in your wallet, you still had a taxable event. You’ll have to pay taxes when you file your tax return, even if you didn’t send the proceeds to your bank account.

How Crypto is Taxed in Portugal

Cryptocurrency can be taxed at different levels and rates depending on the nature of the income you derive from it. According to the Portuguese tax Authority (“Autoridade Tributária e Aduaneira”), cryptocurrencies can be taxed under the following categories:

Income: PIT Category A

Category A of the Portuguese tax code refers to salaries (“Trabalhadores Dependentes”). If you work for a company and receive your compensation in cryptocurrency, you would be taxed at their Fair Market Value (in EUR) at the regular income tax rates in Portugal.

For example, if you have €2K/month salary, you’d always have the same income in Euros despite receiving a different amount of Bitcoin each month due to price fluctuations. However, for income tax purposes, the derived income is always the same, which makes it easier to calculate at the end of the year.

Capital Income: PIT Category E

Category E refers to earning interest (yield) of investment funds, which is usually taxed at a fixed rate of 28%. If you receive yield in cryptocurrencies, you might fall under this category.

Capital Gains Income: PIT Category G

Category G refers to capital gains, like the profits of real estate of a cryptocurrency. Usually, if you invest in cryptocurrencies to make a profit (buy and sell), you’d be taxed under this category.

Self-Employment Income: PIT Category B

Category B refers to independent workers, for example, receiving crypto income for providing a service as a freelancer. For example, if you work under category B as a designer and get paid in Bitcoin for a service, you’d be taxed under this category.

Crypto Tax Rates in Portugal

In Portugal, you can get taxed at a 28% rate for your gains if you held your crypto for less than 12 months before holding it.

If you held that same cryptocurrency for over one year before selling it, you’d get a tax-free rate.

Portuguese citizens can also choose to be taxed at 28% on their short-term gains or to incorporate their crypto gains into their total income for the year and be taxed according to the ordinary income tax brackets in the country.

If your total income (including gains) surpasses the last income tax bracket in Portugal, you’d be obligated to aggregate your crypto gains, which would be taxed at the ordinary income tax rates instead of 28%.

Here are the income tax brackets in Portugal for 2024:

Until 7,703€ – 13,25%
From 7,703€ to 11,623€ – 18%
From 11,623€ to 16,472€ – 23%
From 16,472€ to 21,321€ – 26%
From 21,321€ to 27,146€ – 32.75%
From 27,146€ to 39,791€ – 37%
From 39,791€ to 51,997€ – 43,5%
From 51,997€ to 81,199€ – 45%
Over 81,199€ – 48%

Do You need to declare crypto in Portugal?

In 2024, Portuguese residents had to report their crypto gains and income when filing their regular taxes.

Your 2024 tax return reflected the gains and operations registered during 2023, the year when cryptocurrencies started to be taxed in Portugal. In 2025, the tax return will reflect the operations during 2024.

How to Report Crypto Taxes in Portugal

In Portugal, you have to file your “Modelo 3” (income tax return) to report your income for the year, including cryptocurrencies and extra tax forms. You can do your taxes online at “Portal das Finanças.”
Extra tax forms can include “Anexo G,” containing the gains from your crypto trading activities, or “Anexo E,” representing income from staking activities.

Crypto Tax Deadline in Portugal

The crypto tax deadline in Portugal is the same as the regular tax deadline, usually falling on June 30 of each year. If you file your taxes early, you might receive (if you’re entitled to) your tax return early.

When do you file crypto taxes in Portugal?

In Portugal, you can usually file your tax return between April 1 and June 30, including the extra tax forms to report your crypto activities.

How crypto is taxed as a company

If you work with cryptocurrencies as a company, you’ll be taxed under business income (“IRC”) instead of being taxed at a personal level (“IRS”). The current “normal” tax rate for companies in Portugal is 21%, but there are some exemptions depending on your situation.

Digital Nomads – All you need to know to move to Portugal

Is Portugal a Crypto Tax Haven?

Portugal is still a crypto tax haven, despite the new rules, because crypto investors can still enjoy a tax-free rate on gains if they held crypto for over 12 months before selling it. Few countries (e.g., Germany) offer such benefits, especially in Europe.

How can I move to Portugal?

Portugal stopped the Non-Habitual Residents (NHR) program. However, in 2024, the country introduced a  2.0 version of that tax program to attract digital nomads with a 20% flat tax rate on personal income and other benefits (e.g., tax exemptions on passive income).

Do I still have to pay taxes in my home country if I move to Portugal?

In most cases, if you move your fiscal residency to Portugal and pay the appropriate taxes here, you don’t have to pay taxes in your home country. However, you need to check the tax agreements between Portugal and your home country to make sure what income is subject to dual taxation or not. Please check with a tax professional to evaluate your situation.

Will I be considered a frequent trader in Portugal?

You might be considered a trader in Portugal depending on the nature, amount, or frequency of your crypto trading/earning activity and how you’re registered in the country (e.g., salaried worker, independent worker, owner of a company).

How was crypto taxed in Portugal until 2023?

Until 2023, cryptocurrencies were not taxed because they didn’t fall under the established income categories, with crypto gains and income being tax-free.

With the absence of rules, Portugal was one of the most crypto-friendly countries in the world.

Can the “Autoridade Tributária e Aduaneira” track crypto?

It is unlikely that the IRS in Portugal has the resources right now to find undisclosed crypto holdings, but this might change quickly, as the country is working on the infrastructure to support crypto taxes. As a general rule, it is safe to assume that tax authorities worldwide, from the US to the UK, can track crypto holdings.

What is tax-free – what is not?

Let’s look at some crypto operations that are taxed in Portugal and others (e.g., NFTs) where you can enjoy tax-free gains.

Crypto Staking Taxes Portugal

Crypto staking will be taxed under “Category E“, leading to a fixed 28% tax rate for the income received. You need to determine the Fair Market Value (in Euros) at the time you received those staking rewards, which will be taxed at 28%.

NFT Taxes in Portugal

Portugal exempted any taxes from operations involving Non-Fungible tokens (NFTs). If you have profits from trading NFTs (NFTs-to-NFTs or crypto-to-NFTs), you wouldn’t have to pay taxes on those.

Bitcoin Mining Portugal

Bitcoin mining rewards will fall under “Category B,” resulting in income taxes according to your total taxable income bracket for the tax year.

Crypto Trading Taxes Portugal

Crypto trading is taxed at a 28% rate if you sell your crypto after less than 12 months of holding cryptocurrencies, while you get a tax-free rate if you hold it for over 12 months before selling it for FIAT (e.g., Euros).

How to Avoid or Minimize Your Crypto Taxes in Portugal

Here’s how to reduce crypto taxes in Portugal:

Hold crypto for over 12 months

In Portugal, you get a 0% tax rate if you hold your crypto for over 12 months before selling it for FIAT (e.g., Euros), a strategy that makes the country one of the best crypto-friendly locations in the world.

What other EU countries are crypto tax friendly?

Crypto Taxes Germany

Germany is one of the few countries that offers a 0% tax rate for crypto gains if investors hold it for over 12 months before selling it. Discover other crypto tax benefits in Germany.

Crypto Taxes in the UK

The UK offers some tax benefits for investors involving capital gains tax-free allowances, deducting crypto donations, offsetting gains with capital losses, directing crypto to retirement products, and others. Discover more in our guide on reducing crypto taxes in the UK.

Crypto Taxes in Spain

Spain has a complex tax code regarding cryptocurrencies, taxing crypto-to-FIAT and crypto-to-crypto trades, among other measures. However, there are ways to save. Discover more in our guide about crypto taxes in Spain.

Conclusion about Crypto Taxes in Portugal

Portugal remains one of the best countries for crypto despite the new rules, with investors having several exemptions on crypto taxes.

Crypto taxes can get complicated in Portugal if you’re a frequent trader, own mining operations, or earn crypto staking rewards.

Fortunately, with CoinTracking, investors, hobbyists, and companies can track their portfolios, determine gains and income, and generate the necessary tax reports.