Crypto tax in Portugal

A gain on crypto held for less than 365 days is taxed at a flat 28 percent, with an option to add it to other income at progressive rates, as Jean Galea summarizes the rules. A gain after 365 days or more is exempt, but the sale still goes into the tax return on annex G1. Holding time from before 2023 counts toward the 365 days.

The exemption has conditions. It does not apply to tokens that qualify as securities, and the counterparty must sit in the EU, the EEA or a country with an information-exchange agreement with Portugal. TokenTax adds that losses on sales within 365 days can be set off against short-term gains of the same year only.

A swap from one crypto asset into another is generally not taxed: the tax waits until the investor converts into euros or other non-crypto value. Staking rewards and lending interest are capital income in category E, taxed at 28 percent. Mining, validation and trading that looks like a business fall into category B, taxed at progressive rates between 14.5 and 53 percent.

Crypto held through a Portuguese company is taxed as corporate income whatever the holding period. Portugal has no wealth tax. The NHR regime is closed to new applicants and never exempted crypto.

Short-term gains go on annex G, exempt long-term gains on annex G1, capital income on annex E and foreign income on annex J of the Modelo 3 return. The filing window runs from April 1 to June 30 of the following year, and the tax is due by August 31. Kryptos recommends the first-in, first-out method for the cost basis and records of every transaction.

Finance Loop is the meeting place for investors and wealth managers who hold crypto next to shares and bonds, and for the tax advisers who work for them. Its masterclass Bitcoin for Investors covers portfolio fit, access routes and custody models, and the German and Austrian tax rules have their own pages for comparison. Finance Loop connects the finance, IT and AI communities at events in Frankfurt, Munich, Berlin and Hamburg.

After 365 days, mostly yes. A gain on crypto held for 365 days or more is exempt, provided the token is not a security and the counterparty is in the EU, the EEA or a country that exchanges tax information with Portugal. Shorter holdings pay 28 percent.

Generally not. The tax is deferred until the investor converts into euros or other non-crypto value.

Staking rewards and lending interest are capital income in category E, taxed at 28 percent. Validation run as a business falls into category B at progressive rates.