Portugal used to be a crypto tax haven where individuals could hold crypto free of capital gains taxes. That changed in 2023, when the government introduced a 28% tax on short-term gains, although long-term holdings (over 365 days) remain tax-free in most cases. Depending on whether you’re staking, day trading, or earning crypto professionally, your income could face different rates.

How is crypto taxed in Portugal?

Portugal’s 2023 budget ended the zero‑tax era. Now the rules look like this.

• Category G capital gains. Dispose of a coin held fewer than 365 days and pay a flat 28% on the profit. Hold longer than a year and the gain is exempt in most cases.

• Category E capital income. Passive yield, such as staking rewards or lending interest, is taxed at 28%.

• Category B self‑employment. If crypto activity is organised like a business (constant day‑trading, large mining rigs, market‑making) profit is folded into progressive income brackets that climb from 14.5% to 53%.

Tokens that meet the legal definition of ‘security-type’ instruments, or disposals where the counter-party or wallet provider is in a jurisdiction on Portugal’s tax ‘black list,’ do not qualify for the > 365-day exemption.

Use our free crypto tax calculator.

How different crypto transactions are taxed in Portugal

Here’s a breakdown of common crypto transactions and how they’re treated in Portugal for tax purposes.

Buying and holding cryptocurrency

Buying coins triggers nothing. You only face tax when you sell or swap. Keep each acquisition date so you can prove a holding period of 366 days or more if questioned.

Selling cryptocurrency

Sell inside one year and gains face the 28% levy. Sell after a year and those gains are usually exempt unless the token is on the securities list or stored outside the EEA.

Mining and staking cryptocurrency

Casual crypto staking or hobby mining lands in Category E at 28%. Large farms or validators that look like a business move to Category B, where progressive rates and bookkeeping apply.

Crypto‑to‑crypto trades tax

Swapping ETH for SOL counts as a disposal of ETH. If you held the ETH less than a year, tax the gain at 28%. Over a year may be exempt depending on classification.

Receiving cryptocurrency as payment

Wages, freelance invoices, or merchant revenue in crypto fall under Category B. Convert the coin’s value to euros on receipt and apply the normal income scale.

Learn more about crypto tax free countries.

Capital gains tax

Short term, 28%. Long term, usually zero. The clock starts the minute the coins hit your wallet and stops when you spend, swap, or sell.

Tax‑free cryptocurrency transactions in Portugal

• Disposal of coins held at least 366 days (if the token is not security‑like).

• Gifts to spouses or direct heirs often sidestep stamp duty.

• Wallet transfers you make between your own addresses.

See our expert picks of the best crypto loans.

Record‑keeping for crypto transactions in Portugal

• Timestamp of every buy, trade, or sale.

• Euro value at the moment of each event.

• Proof of staking or mining payouts if you claim they are hobby scale.

• Documentation that shows a token’s legal status if you rely on the long‑term exemption.

Filing deadlines for crypto taxes in Portugal

Submit Modelo 3 between 1 April and 30 June. Any balance due must be paid by 31 August to avoid interest.

What types of records do I need for my crypto taxes?

Exchange CSVs, DeFi wallet exports, bank statements for fiat ramps, and a simple ledger that marks each asset’s purchase date. Keep records for ten years; the tax office can audit well after the fact.

How to file crypto taxes in Portugal

1. Split activity into Categories E, G, and B.

2. Summarise gains from disposals under and over 365 days.

3. Enter Category E totals in annex E of Modelo 3, Category G in annex G, and Category B in annex B if you qualify as professional.

4. Upload the return through the Portal das Finanças by 30 June.

5. Pay any short‑term tax due by the August deadline.

How to calculate your crypto taxes in Portugal?

• For each asset, subtract euro cost basis from euro sale price.

• Tally gains on lots held under a year, multiply by 28%.

• Add staking or lending income and multiply by 28% unless you file as professional.

• If you operate under Category B, apply the progressive table to net business income.

How are crypto losses taxed in Portugal?

Losses on disposals inside 365 days can offset short‑term gains from the same year. Unused losses do not carry forward. Long‑term disposals are exempt, so their losses provide no benefit.

How are crypto airdrops taxed in Portugal?

Most airdrops count as Category E income at the euro value on the day you receive the tokens. If you later sell within a year, gains are short‑term; sell after a year, and they may be exempt.

How is DeFi taxed in Portugal?

Yield farming, liquidity pool rewards, and lending interest belong to Category E unless the activity is large enough to be a business, in which case Category B applies.

Portugal crypto taxes for businesses

Portuguese companies include crypto revenue in normal corporate income. Standard CIT rates start near 17% for small profits and rise to 21%. Municipal surtaxes can add a few points. Corporate miners are taxed on 95% of gross income from block rewards.

Regulatory compliance for crypto in Portugal

Local or EU exchanges must meet AML and KYC rules. The Bank of Portugal oversees service providers. The tax office can request customer data, so accurate filing is essential.

Income tax on crypto activities in Portugal

High‑volume traders, miners with dedicated facilities, or anyone offering crypto services professionally fall into Category B. Net profit joins other income and follows the progressive scale up to 53%.

Deducting crypto losses in Portugal

A Category B trader can deduct trading losses and business expenses such as electricity or hardware depreciation. Keep receipts and a daily position ledger.

Crypto as payment for goods and services

If you spend crypto personally, treat it like any disposal: under a year means 28% on any gain, over a year may be tax‑free. Merchants record the sale in euros on the spot date and include that amount in taxable income.

How to avoid cryptocurrency taxes in Portugal

• Hold at least 366 days before selling.

• Gift coins to direct family where stamp duty does not apply.

• Confirm your token’s legal class so the long‑term exemption stands.

• Evasion, such as under‑reporting exchange withdrawals, risks fines of €200 to €2,500 plus interest.

Learn how to reduce your crypto taxes.