Portugal Crypto Tax: 2026 Guide for Expats and Digital Nomads

Is crypto tax-free in Portugal?

After the changes to the State Budget Law in 2023, Portugal is no longer a tax-free country. Portugal is now a long-term tax haven, which means capital gains are taxed for short-term traders and passive income earners, but are tax-free for long-term investors.

Here’s how cryptocurrency profits are taxed in Portugal today:

• If you sell or dispose of your crypto within 365 days, any profit is taxed at a flat 28 percent rate.
• If you hold your crypto for more than 365 days before selling or disposing of it, the capital gains are not taxed.

This approach to crypto taxes in Portugal is the main reason why digital nomads, entrepreneurs, and young professionals see it as one of the most crypto-friendly countries in Western Europe.

For example, the Portuguese crypto tax is more favorable than in countries that still tax traders on long-term crypto gains, like Canada, the United States, Australia, the United Kingdom, and Japan.

Note: The zero percent long-term rule does not apply if the cryptocurrency is held in an exchange or wallet located in a “tax haven” on Portugal’s official blacklist or in certain offshore jurisdictions.

How is crypto taxed in Portugal?

The tax you pay depends on how you earn the cryptocurrency and how you hold the asset. The Portugal crypto tax in 2025 falls into three income categories:

Category G: Capital gains (buying and selling)

This is the most common category for regular investors and standard crypto assets. There is a 365-day rule that applies when you sell cryptocurrency for real money, such as euros, dollars, or pounds. If you hold your crypto for more than a year, your profit is tax-free.

If you sell the asset in less than a year, you pay a flat 28 percent capital gains tax. Swapping one crypto for another, like Bitcoin for Ethereum, is tax-deferred, which means you don’t pay tax at the moment of the trade. However, the swap restarts the 365-day clock for the new asset.

Even if your gains are tax-free, you must report them to the official tax authorities on your annual tax return. You can read about the capital gains tax in Portugal in our comprehensive guide.

Category E: Investment income (passive yield)

This category is for making money without selling the original asset. It is treated like interest or dividends. Category E covers capital income from staking rewards, lending, or yield farming.

The average flat rate is 28 percent based on the market value of the rewards when you receive them. If you receive rewards in the form of new tokens rather than fiat currency, the tax is often delayed until you actually sell those tokens, which means the tokens move to category G.

Category B: Professional income (self-employed)

This category is for professional crypto traders who use cryptocurrency as their career. It covers mining income, validating blocks, or high-frequency day trading.

Your capital gains income is added to your total yearly earnings and taxed at progressive rates ranging from 12.5 percent to 48 percent. For very high earners, additional solidarity surcharges can bring the total rate up to 53 percent. You can read more about the progressive IRS rates in our guide on taxes in Portugal.

Under the “Simplified Regime,” you might only be taxed on a small portion of your total turnover. For example, 15 percent of your trading revenue is considered taxable profit. If you are planning to buy a house with crypto, check our guide to buying property in Portugal with crypto.

Tax-Free & Exempt Crypto Transactions in Portugal

So, is Portugal good for crypto? The answer is yes! The cryptocurrency market in Portugal remains one of the most tax-friendly in Europe, as many crypto transactions are exempt from tax.

Here are a couple of examples where you don’t pay crypto taxes in Portugal:

• Holding your crypt-assets for 365 days or more before selling them for fiat currency
• Crypt-to-crypto swaps
• Non-Fungible Tokens (NFTs)
• Gifts and inheritances between spouses, parents, and children. Otherwise, a 10 percent stamp duty (Imposto de Selo) applies to gifts over €500, or 0.8 percent for real estate transactions
• Buying crypto or moving it between your own private wallet
• VAT (Value Added Tax)

Note: Buying goods or services with crypto is tax-free in Portugal, as long as the crypto you use to pay has been held for more than 365 days.

How are different transactions taxed in Portugal?

Here is how different crypto transactions are taxed in Portugal.

Note: Regardless of whether you owe zero or thousands of euros, all residents must report their crypto disposals in their annual Modelo 3 tax return. You can file it between April and June with the Portuguese tax authority.

Crypto Tax Rates in Portugal

The Portugal crypto tax rates depend on how you earn money (trading vs staking vs mining) and how long you hold the asset.

The flat 28 percent tax rate applies to short-term capital gains, staking, lending, and yield farming. If you receive rewards in fiat or stablecoins, the 28 percent tax applies to the market value upon receipt.

If you trade crypto as an individual investor and earn cryptocurrency income from trading, mining, or staking, you are taxed under the progressive IRS brackets.

Here are the resident tax brackets for 2025:

Source: PWC Portugal

If you hold crypto through a Portuguese company, you pay corporate income tax in Portugal on all profits.

According to PWC Portugal, the standard corporate income tax is 20 percent in mainland Portugal and 14 percent in the autonomous regions of Azores and Madeira. However, Small and Medium Enterprises (SMEs) pay a reduced rate of 16 percent in the mainland (or 11.2 percent in autonomous regions) on their first €50,000 of profit.

Portuguese companies that don’t have a permanent or registered office in Portugal often pay a flat 25 percent fee.

Note: The 365-day crypto tax-free rule for individuals does not apply to companies.

How much tax do you pay on crypto in Portugal?

You pay 28 percent on short-term capital gains, which are taxed the same as personal income. On the other hand, long-term crypto gains are tax-free. Professional trading, mining, or crypto-related business income is taxed from 12.5 to 48 percent, or 53 percent for high-income earners.

If you fall under the Simplified Regime and earn less than €200,000 per year, as a crypto trader, you pay 15 percent on your revenue. However, crypto miners are subject to a much higher taxable base of 95 percent of their revenue due to environmental penalties.

How to calculate taxes on crypto in Portugal?

To calculate your crypto taxes, you must determine your holding period, identify your income category, and apply the FIFO accounting method.

In Portugal, the First-In, First-Out (FIFO) method means the first coins you bought are considered the first ones you sell. If you sell cryptocurrency within 365 days, any capital gain is typically taxed at a rate of 28 percent. If you sell it after 365 days, it is tax-free.

To calculate capital gains, use this formula:

Capital Gain = (Sale Price in EUR) – (Purchase Price in EUR) – (Trading Fees)

For example, you bought 10 Ethereum in March 2025 for €2,000 each. You sell them in August 2025 for €3,000 each. To calculate the profit, that would be €30,000 (Sale) – €20,000 (Cost) = €10,000 Profit.

When the holding period is less than 365 days, the tax rate is 28 percent, which means you pay €2,800 tax on the €10,000 profit.

To calculate your taxable income and manage your tax liabilities, Goldcrest can introduce you to a reliable tax professional.

How to report crypto in Portugal?

To report crypto in Portugal, submit your Modelo 3 tax return via the Portal das Finanças (Portugal’s online tax platform) between 1 April and 30 June.

Your crypto activity will be divided into different annexes:

• Annex G: Short-term gains
• Annex G1: Long-term gains
• Annex J: Used if trading on international exchanges (e.g., Binance, Coinbase)
• Annex E: Passive income, like staking or lending.

Use code G60 for crypto. Convert all values to euros using the rate on the transaction date. Even tax-exempt gains must be reported. Maintain detailed FIFO records for a minimum of four years to ensure audit readiness.

How to avoid cryptocurrency taxes in Portugal?

You can’t avoid paying taxes on crypto in Portugal. But you can minimize or eliminate your crypto tax liability if you focus on these strategies:

• Hold your crypto-assets for at least 365 days before selling them.
• Exchanging one cryptocurrency for another.
• Invest in non-fungible crypto assets.
• If you are a freelancer, try the “Simplified Regime” where you are only taxed on a percentage of your turnover.
• If you have the skills, use the NHR tax benefits. Although the Non-Habitual Resident (NHR) ended in 2024 for new applicants, it was replaced by NHR 2.0 in Portugal. If you are a highly skilled digital nomad, you can get the flat 20 percent tax rate when working for high-value sectors, such as technology, IT, and innovation.

Bitcoin and Cryptocurrency Services in Portugal

To navigate the crypto landscape in Portugal in 2025, you can tap into a variety of local and international services. Here are some examples:

• Popular crypto exchanges: Most major international platforms operate in Portugal, allowing you to buy, sell, and trade using SEPA bank transfers or credit cards. These include Kraken & Coinbase, Bitpanda, and Revolut.
• Physical bitcoin ATMs (BTMs): Portugal has a growing number of BTMs in major hubs like Lisbon, Porto, Braga, and Funchal.
• Crypto-friendly banking. There are many banks in Portugal that work with crypto-related transactions, such as ActivoBank, Millennium BCP, and digital banks. You can find the best bank in our article about banking in Portugal.

How to Move to Portugal as a Cryptocurrency Trader

Moving to Portugal as a cryptocurrency trader often means securing a D8 Digital Nomad Visa, which requires non-EU citizens to prove a consistent monthly income of at least €3,480 (four times the national minimum wage) from foreign sources.

If you prefer to apply for residency through investment, the Portugal Golden Visa may be a more viable option. Although the real estate investment option has been removed, other pathways remain open, such as investing in funds, contributing to artistic production or cultural heritage, or creating ten new full-time jobs. The primary benefit of the Golden Visa is the short-stay requirement, which may be particularly appealing to crypto investors.

For those who plan on retiring in Portugal via the D7 Visa, the country offers favorable immigration policies for non-EU citizens, like Americans with a stable passive income, such as pensions, rentals, dividends, or remote work.

Buying a property in Portugal is a smart move, given the fact that the real estate market has moved from strength to strength in recent years.

Once you obtain your Portuguese tax number (NIF) and open a local bank account to show financial self-sufficiency, you can settle in the country. To maintain this status, you should focus on proving that your trading is a personal investment activity. Check our article on how to get Portuguese residency for more details.

How can Goldcrest help you?

Goldcrest is a buyer’s agent that works with expats, property buyers, and developers interested in Portugal real estate investments. We provide off-market properties, the latest trend statistics, negotiation, and rental services for long-term rentals.

Our team has a network of local experts, such as tax professionals, real estate lawyers, and contractors. Contact us today and let us help you find your dream home.