Portugal’s Tax and Customs Authority (Autoridade Tributária e Aduaneira, AT) has published detailed explanations on the taxation of cryptoassets. The document does not introduce new taxes: it organizes the current rules for private investors, miners, companies, and holders of digital assets. Here is what the guidance explains.

This category includes mining, token issuance, and participation in transaction validation through consensus mechanisms.

For individuals under the simplified tax regime, with income of up to EUR 200,000 per year, a special method is used to calculate the taxable base:

After that, the income is taxed under the ordinary progressive IRS scale, Portugal’s personal income tax.

An important point: exchanging one cryptocurrency for another is not in itself a taxable event. Tax arises when the asset is sold for money or other property.

The tax authority also notes that closing a business activity or losing Portuguese tax resident status may be treated as a sale of assets for tax purposes.

Income from staking, crypto lending, and similar operations falls under capital income. The standard rate is 28%, but the taxpayer may choose englobamento, meaning inclusion in the general taxable base. If the reward is paid in cryptocurrency, tax is usually deferred until the received assets are later sold.

This is the most important section for most investors. The main rule depends on the holding period:

The holding period for cryptoassets acquired before January 1, 2023, is also taken into account.

When calculating the gain, the formula is: sale value minus purchase value and documented expenses related to acquisition and sale.

To determine which assets are considered sold first, the FIFO method is used. If cryptocurrency is held on several platforms, FIFO is calculated separately for each platform.

Exchanging one cryptocurrency for another remains untaxed. The obligation arises only when the asset is later sold for money or property.

Losses from cryptoasset transactions can be carried forward for the next five years, but only if englobamento is chosen.

If the owner loses Portuguese tax resident status, their cryptoassets may be treated as notionally sold at market value on the date of departure. This is known as an exit tax.

For legal entities, income and expenses related to cryptoassets are included in taxable profit under the general rules. The tax authority separately notes that there is still no universal accounting standard for cryptoassets. The approach depends on the economic nature of the asset and how it is used in the business.

For companies under the simplified regime, the coefficients are:

Cryptoassets may be subject to stamp duty (Imposto do Selo) when transferred free of charge, for example through inheritance or as a gift. The rate is 10% if certain conditions linked to Portugal are met: the residence of the parties or the location of the entity that holds the assets. Stamp duty may also apply to fees charged by intermediaries such as exchanges and custodians.

If cryptoassets are used to buy real estate, their value for calculating property transfer tax (IMT, Imposto Municipal sobre as Transmissões Onerosas de Imóveis) is determined under the same valuation rules used for stamp duty.

Exchanges, custodians, and other platforms working with Portuguese clients must report information on each client to the tax authority every year by the end of February.

The publication of the document shows how much Portugal’s approach to cryptocurrencies has changed in recent years.

A few years ago, Portugal was often described as one of Europe’s hubs for crypto investors because most transactions with digital assets were effectively untaxed. After the 2023 tax reform, a full regime for cryptoassets was introduced, with rules for short-term trades, staking, mining, and reporting.

Today, Portugal’s crypto market is no longer an area with unclear rules. The rules have become much more detailed and predictable. One of the main advantages remains in place: long-term investments in cryptoassets held for more than one year are still exempt from tax, making Portugal one of the more attractive EU jurisdictions for long-term crypto investors.