Portugal has long been a top choice for crypto investors and remote workers. The sunshine, low living costs, and relaxed pace of life are a huge draw. Many digital nomads have found it easy to settle here and build a new lifestyle. In fact, over 1,6 million foreigners now live in Portugal, and a growing number of them are involved in the crypto space.
But there’s been a shift. In 2023, the government introduced a tax policy for crypto under the new state budget. So while Portugal crypto taxes are now a thing, the system is still clear and relatively simple, once you understand how it works.
This guide is here to help. We’ll explain Portugal crypto taxes in plain words. You’ll learn who needs to pay, when it applies, and how to stay on the right side of the law. Whether you’re a trader, HODLer, or planning to buy a home using your gains, this article is for you.
From Tax-Free to Transparent: What Changed in Portugal
For years, Portugal had a reputation as a tax-free paradise for crypto users. If you bought Bitcoin and sold it for profit, the government didn’t touch it—at least not for personal, non-professional trades. That setup made Portugal a magnet for traders, digital nomads, and early crypto adopters who wanted to grow their wealth without tax complications.
But things started to shift in 2023.
The government introduced formal rules on Portugal crypto taxes. The goal wasn’t to scare away crypto users but to regulate the space clearly. Under the new law, crypto gains are now taxed if you sell within 12 months of buying. That means fast flips are taxed, but long-term holders still enjoy 0% on those profits.
Mining, staking, and crypto income earned as part of a business? Those are taxed too, often as personal income depending on how it’s classified. The rules also apply if you use crypto to buy goods or services, not just when converting to euros.
The good news? It’s all written out clearly in the Portuguese tax system, and it’s designed to be fair, not punitive. If you’re holding your coins long-term or simply using crypto as a savings method, Portugal is still one of the better places to be.
The move from tax-free to transparent has helped Portugal modernize its policies while still keeping the door open for serious crypto enthusiasts.
Who Pays Crypto Tax in Portugal?
If you live in Portugal and deal with crypto, you might owe taxes. But not everyone pays the same. It all depends on how you use your crypto and how long you hold it.
Let’s start with the basics. If you sell crypto within 12 months of buying it, and make a profit, you’ll likely pay tax. The short-term gain is taxed at a flat rate of 28%. But if you hold your crypto for over a year, there’s no tax on the profit. That’s good news for long-term investors and casual HODLers.
If you’re mining crypto or getting paid in it, things change. These are considered regular income and taxed based on your earnings. Same goes if you trade crypto as your full-time job or business.
Even if you use crypto to buy something like a car or a holiday, you could be taxed if the value has gone up since you got it. Portugal crypto taxes focus on resident taxpayers. If you’re spending more than 183 days here per year, you’re considered a resident and must report accordingly.
Even if you’re not taxed, you must file. It’s best to use tracking tools to avoid mistakes. And if you’re freelancing or job-hunting, IEFP.pt can help you find work legally.
What Gets Taxed Under the New Rules?
Not everything is taxed under Portugal crypto taxes. Here’s what you need to know:
- Crypto sold within 12 months = 28% tax
- Crypto held over 12 months = 0% tax
- Mining and staking = taxed as personal income
- Business or professional crypto = taxed under Category B (self-employment)
So, the rules depend on how you use your crypto. A long-term HODLer is treated very differently than a day trader.
How to Report Your Crypto to Authorities
In Portugal, reporting your crypto isn’t as scary as it sounds. But you do need to be clear and accurate. If you’re a tax resident and earn income or capital gains from crypto, you must declare it during the annual tax filing season.
Portugal crypto taxes fall under personal income tax rules. If you sold crypto within 12 months, your gains are considered taxable and must be included in your IRS Form Modelo 3. You’ll likely use Annex G for capital gains or Annex B if it’s business-related. If you earned income through mining, staking, or payments in crypto, that counts too, usually declared as Category B or A, depending on the nature of your work.
You’re responsible for tracking your own trades. That means keeping a record of purchase dates, sale dates, and prices in euros. Using crypto for purchases? That counts too if the value has changed since you acquired it.
Need help with the forms? It’s a good idea to work with a local tax consultant or advisor, especially if you have complex transactions.
Are Foreigners and Expats Treated Differently?
If you’re a foreigner or expat living in Portugal, crypto tax rules still apply. The key point is tax residency. If you spend more than 183 days in Portugal in a year, or have a permanent home here, you’re considered a tax resident. That means you must follow the same crypto tax rules as locals.
But there’s a silver lining for newcomers. Portugal offers the NHR (Non-Habitual Resident) regime. This special status gives tax benefits for up to 10 years. While it doesn’t exclude crypto taxes completely, it may reduce other income taxes depending on your situation.
If you’re not a tax resident, say you’re just visiting or staying part of the year, Portugal crypto taxes usually don’t apply. Still, it’s smart to talk to a local advisor if you trade or spend crypto while in the country.
With over 1,6 million foreigners now calling Portugal home, many are navigating these same questions. Portugal remains welcoming, but the rules are clearer now. If you live here and trade, mine, or earn in crypto, it’s important to stay compliant.
Smart Tips to Pay Less Legally
There are legal ways to lower your tax burden.
Hold crypto for more than 12 months
If you wait over a year before selling your crypto, Portugal won’t tax the gains. This is the easiest legal way to reduce your crypto tax bill.
Track your cost basis to prove accurate gains
Keep records of how much you paid for each coin. Without proof, authorities might guess higher values. Good tracking means you only pay tax on real profits.
Consider declaring as a married couple
Filing taxes jointly may lower your overall tax rate. Portugal’s system allows couples to split taxable income, which can reduce how much tax you owe on crypto earnings.
Don’t mix personal and business wallets
Keep separate wallets for personal investing and business activity. Mixing them could lead to higher taxes or confusion when reporting to tax authorities. Clear separation makes auditing easier.
Hiring a professional can save you money in the long run
A tax advisor can help you avoid mistakes and claim legal deductions. Their fee is often far less than what you might lose from errors or missed savings.
Can You Buy Property With Crypto in Portugal?
Yes, many investors are now using cryptocurrency to buy property in Portugal. While the actual transaction must be converted into euros at the time of purchase—since property deals are finalized in fiat currency—it’s entirely legal to use crypto as the source of funds. That said, proper documentation is crucial. You’ll need to show the origin of funds, especially to satisfy both the notary and anti-money laundering (AML) regulations.
Portugal remains a crypto-friendly and welcoming destination. It consistently ranks high on global safety indexes—currently 7th safest in the world—making it especially attractive for digital nomads, investors, and families. However, while the environment is open, it’s essential to stay compliant with evolving tax laws, immigration requirements, and financial reporting rules. Following these rules ensures a smooth transition and peaceful life in Portugal.
Looking Forward: What Could Happen in 2026?
As more people move to Portugal, the crypto scene keeps growing. Over 1,6 million foreigners now live here, many of them involved in digital assets. So, it’s no surprise the government is keeping a closer eye on crypto activity.
Right now, Portugal crypto taxes are clear and mostly fair. Long-term holders still enjoy 0% tax, and the 28% flat rate on short-term gains is manageable. But since Portugal is part of the EU, future changes could happen, especially with increased EU-wide regulation on digital assets.
Still, Portugal wants to stay attractive to digital workers, freelancers, and crypto investors. The goal isn’t to scare people off, it’s to create a system that works.
If you stay updated, keep your records clean, and follow the rules, you’ll be fine. And if you’re unsure about anything, a quick chat with a tax advisor can save you trouble later on.
Final Thoughts: Know the Rules, Relax in Portugal
Crypto may be taxed now, but Portugal is still one of the most balanced places to be. Long-term holders are rewarded. And reporting is simple, especially when you get the right guidance.
Use this guide, track your activity, and ask for help when you need it. Staying informed is the best way to avoid surprises.
Portugal offers peace, sunshine, and a digital-friendly lifestyle. With stable rules and a supportive expat community, it’s no wonder so many choose to stay.
Add fair Portugal crypto taxes to the list, and you’ve got a place that supports both freedom and clarity. Life here feels lighter when the rules are clear and that’s what makes Portugal special.
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Frequently Asked Questions About Portugal Crypto Taxes
Do I need to pay tax on long-term crypto gains in Portugal?
No, if you hold your crypto for more than 12 months before selling, there’s no tax. This rule encourages long-term holding and still makes Portugal attractive for many crypto investors.
What if I trade crypto often?
If you sell crypto within 12 months, you may be taxed at a flat rate of 28%. Frequent trading or using bots could even be seen as business activity, so keep records and ask for advice.
Is staking income taxed in Portugal?
Yes, income from staking is usually taxed. It’s treated as regular income and needs to be declared in your annual tax return. The rate depends on your total earnings and how the income is classified.
Do I need to report crypto gifts or donations?
Yes, giving or receiving crypto as a gift may be taxable. The tax rate and process depend on your relationship with the other person and the value of the gift.
Are NFTs taxed the same as crypto?
NFTs are treated case by case. If sold for a profit, they could be taxed like regular crypto assets. However, rules are still evolving, so it’s best to check with a tax expert.
What tax form do I use for crypto in Portugal?
Most people report crypto gains using IRS Form Modelo 3 with Annex G or Annex B. Which one you use depends on whether your activity is personal or considered business-related.
Do foreigners pay crypto taxes in Portugal?
Yes, if you’re a tax resident. That usually means living in Portugal for more than 183 days a year. Expats with Non-Habitual Resident (NHR) status might get some tax breaks, though.
Is crypto mining taxed in Portugal?
Yes, crypto earned through mining is taxed as income. You’ll need to declare it and possibly pay social security too, depending on whether it’s a business activity or personal side income.
Do I need to pay Portugal crypto taxes if I use crypto to buy things?
Yes. If the value of your crypto went up since you bought it, and you use it for purchases, you may need to report the gain—even for small transactions.
