top of page

The 2025 Essential Guide to Crypto Tax in Portugal

Writer's picture: INLIS ConsultingINLIS Consulting

This guide provides essential insights into crypto tax in Portugal for 2025. Stay informed about regulations, reporting requirements, and tax obligations for cryptocurrency holders in Portugal.

Crypto tax in Portugal

Crypto Tax in Portugal: 2023 Changes


In 2023, Portugal introduced a new crypto tax regime, imposing a 28% capital gains tax on short-term crypto holdings (less than 365 days). Long-term crypto holdings (over one year) are exempt from tax, except for certain tokens like securities and those from specific jurisdictions.


Filing and Payment Deadlines


Crypto investors in Portugal must file their tax returns by June 30 each year, with payments due by August 31.


Minimizing Tax Liability


Holding crypto for over a year and making donations can help reduce tax liability.


Portugal Crypto Taxes: An Evolving Landscape


Portugal's approach to cryptocurrency taxation has changed significantly in recent years. Once regarded as a crypto tax haven, the country introduced stricter regulations in 2023, applying taxes to various forms of crypto income. Investors, traders, and miners now face a more complex tax environment, requiring awareness of the latest rules to stay compliant and optimize tax strategies.


Portugal’s New Crypto Tax Regime: What Changed?


Before 2023, Portugal was a favored destination for crypto investors due to its tax-free regime for individual crypto holdings. However, with new laws effective from January 1, 2023, Portugal now applies a 28% tax on short-term capital gains from crypto holdings sold within 365 days of acquisition. Holdings longer than one year remain tax-exempt in most cases, but this exemption doesn't apply to all tokens.


Tokens that function like securities or crypto held in specific non-EU/EEA jurisdictions are subject to different rules.


Additionally, income from staking, lending, mining, and professional trading is taxed progressively, with rates ranging from 14.5% to 53%, based on your total income bracket.


How Is Crypto Taxed in Portugal?


Crypto income in Portugal is categorized into three main categories under the Personal Income Tax Code (PIT Code):

Category

Description

Tax Rate

Capital Income (Category E)

Passive income from activities like staking or lending.

28% (flat-rate)

Capital Gains (Category G)

Profits from crypto held for less than 365 days are taxed at 28%. Long-term holdings (over 365 days) are generally tax-exempt unless the tokens are securities or held outside the EEA.

28% (short-term); Exempt (long-term)

Self-Employment Income (Category B)

Professional trading, mining, or transaction validation income is taxed as self-employment income.

14.5% to 53% (progressive)

Reporting Crypto Taxes in Portugal


Crypto investors must report their income annually using the Modelo 3 IRS form. The reporting period runs from April 1 to June 30 each year. Taxes must be paid by August 31 for returns filed by June 30. The filing must include detailed information about all crypto transactions, such as the type of transaction, income received, and date.


Failure to comply with reporting obligations can lead to penalties ranging from €200 to €2,500, and late payments may incur fines of up to 100% of the outstanding tax.


Deadline

Action

Penalty for Non-Compliance

April 1 - June 30

Report crypto income via Modelo 3 IRS form

Penalties of €200 to €2,500 for non-compliance

August 31

Pay taxes for returns filed by June 30

Late payment fines of up to 100% of the outstanding tax


Strategies to Minimize Crypto Taxes in Portugal

Portugal’s tax regime offers several strategies to reduce crypto tax liabilities:


Strategy

Description

Benefit

Hold Crypto for More Than a Year

Avoid the 28% capital gains tax by holding crypto for over 365 days.

Tax exemption on long-term holdings (except for certain tokens)

Make Crypto Donations

Donate crypto to spouses, life partners, or descendants to benefit from exemptions. Donations under €500 are fully exempt.

Exempt from 10% Stamp Duty for donations to family members

Tax Planning for Professional Traders

Deduct expenses such as electricity and equipment costs from taxable income. Consult a tax professional.

Reduce taxable income from professional crypto trading

Conclusion


While Portugal’s crypto tax regime remains favorable for long-term holders, the taxation of staking, mining, and professional trading income requires careful attention. To navigate these complexities and ensure compliance with the evolving tax laws, always consult a licensed tax advisor.


Portugal Crypto Taxes for Businesses


For businesses involved in cryptocurrency activities, such as mining operations or exchanges, Portugal applies standard corporate tax rates. Income from crypto-related business activities is taxed progressively, with specific rates based on the earnings.

Business Type

Tax Rate

Description

Crypto Businesses (General)

Progressive tax rates, starting from 15%

Businesses earning up to €200,000 are taxed at 15%, with higher rates for larger earnings.

Crypto Miners

Taxed on 95% of gross income

Miners are taxed on 95% of their total gross income from crypto mining activities.

This progressive taxation ensures that smaller businesses benefit from lower rates, while larger operations face higher taxation based on their income level. Businesses should consult a tax advisor to ensure compliance with the regulations and optimize their tax strategy.

Subscribe to our newsletter

73 views0 comments

Comments


Email

Address

Av. João XXI,nº 72 -  B - C.C Via Venetto Loja 28 || 1000-304 Lisboa

Tel

+351 968 464 906

© 2025 INLIS Consulting.

Follow us

  • Whatsapp
  • Instagram
  • Facebook
  • LinkedIn
  • YouTube
AIMA file lock
AIMA file lock
AIMA file lock
AIMA file lock
bottom of page