Portugal’s tax authority, AT, has published detailed guidance on the taxation of crypto assets. The document does not introduce new taxes; it organises the existing rules for private investors, miners, companies and holders of digital assets.
Key points from the guidance
Mining and crypto business income
Mining, token issuance and participation in transaction validation through consensus mechanisms fall under category B. For individuals using the simplified tax regime, with income up to 200,000 euros a year, the taxable base is calculated using specific coefficients: 15% for most crypto-asset operations and 95% for mining income. The resulting taxable amount is then subject to the ordinary progressive IRS scale.
Swapping one cryptocurrency for another is not treated as a taxable event by itself. Tax is triggered when the asset is sold for money or other property. The tax authority also notes that closing an activity or losing Portuguese tax residency can be treated as a disposal for tax purposes.
Staking, lending and other passive income
Income from staking, crypto lending and similar operations is treated as investment income. The standard rate is 28%, although taxpayers may choose to include the income in their overall taxable base through englobamento. If the reward is paid in cryptocurrency, taxation is usually deferred until the later sale of those received assets.
Selling cryptocurrency and capital gains
For most investors, the key rule is the holding period. If the crypto asset was held for less than 365 days, the gain is taxed at 28% or included in the overall taxable base. If it was held for 365 days or more, the gain is exempt. Holding periods for assets acquired before 1 January 2023 are also taken into account.
Capital gain is calculated as the sale value minus the acquisition cost and documented purchase and sale expenses. FIFO is used to determine which assets are treated as sold first. If crypto is held on multiple platforms, FIFO is calculated separately for each platform.
Losses and leaving Portugal
Losses from crypto-asset transactions can be carried forward for five years, but only when the taxpayer chooses englobamento. If the holder loses Portuguese tax residency, the crypto assets may be deemed sold at market value on the date of departure. This is the so-called exit tax.
Companies, inheritance and real estate
For companies, income and expenses related to crypto assets are included in taxable profit under the general rules. Under the simplified corporate regime, the coefficients are 15% for most crypto income and 95% for mining.
Crypto assets may be subject to stamp duty, Imposto do Selo, when transferred free of charge, for example by inheritance or gift. The rate can be 10% if the relevant connection to Portugal exists. If crypto assets are used to buy real estate, their value for IMT purposes is assessed under the same valuation logic used for stamp duty.
Platform reporting
Exchanges, custodians and other platforms serving Portuguese clients must report client-level information to the tax authority every year by the end of February.
What this means for the market
The guidance shows how much Portugal’s approach to crypto has changed. The country was once seen as one of Europe’s most favourable jurisdictions for crypto investors, but after the 2023 reform it now has a full framework for short-term trades, staking, mining and reporting.
The Portuguese crypto market is no longer a grey area. The rules are more detailed and more predictable. One important advantage remains: long-term crypto investments held for more than a year are still exempt from tax.
