Crypto Adoption Around the World: Portugal

Current Economic Situation in Portugal

Source: OECD

Portugal’s economic landscape in 2025 offers a unique backdrop for the continued adoption of cryptocurrency. Following a period of post-pandemic recovery, the economy is stabilizing.

As of 2025, the latest macroeconomic forecast projects a GDP growth of 1.9%, driven largely by domestic demand and EU funds. The economy saw an expansion of 0.8% in the third quarter of 2025, helped by pension bonuses and tax refunds that boosted consumer spending.   

The labor market remains dynamic, with the unemployment rate gradually declining to a 12-month average of 6.3% as of August 2025. Employment has reached new historic highs, supported by strong demand and supply of labor.   

Despite these gains, businesses remain cautious about the economic outlook due to global trade tensions. 

However, with private consumption projected to grow steadily and inflation easing to 2% by 2026, the environment remains favorable for alternative financial technologies. Notably, a significant portion of the population is already engaging with digital assets; revenue in the cryptocurrencies market is projected to reach US$347.1m by 2026.

Crypto Law in Portugal

Portugal has transitioned from an unregulated environment to one with clear, albeit evolving, rules.

Historically, Portugal was known for its zero-tax approach to crypto. However, the landscape shifted with the 2023 State Budget. Short-term capital gains on crypto assets sold within 365 days are now subject to a flat tax rate of 28%. 

Importantly, the government maintained a key incentive: income from the disposal of crypto-assets held for 365 days or more remains exempt from taxation, provided it is not part of a professional activity.   

On the regulatory front, the Markets in Crypto-Assets (MiCA) regulation became applicable across the EU in December 2024. However, Portugal is currently in a transitional phase. 

As of January 3, 2025, the Bank of Portugal confirmed that a national competent authority to authorize new Crypto-Asset Service Providers (CASPs) under MiCA has not yet been appointed.   

For now, existing Virtual Asset Service Providers (VASPs) registered under the previous AML-only framework may continue operating until as late as June 2026 or until the new implementing legislation is enacted. This creates a temporary “grey zone” where no new entrants can be licensed as CASPs until the government finalizes the legislative process.

The Current State of Crypto Adoption in Portugal

Portugal’s favorable, though tightening, regulatory environment continues to attract investors.

The country has seen robust growth in digital asset usage. In 2025, user penetration in the cryptocurrency market is projected at 31.09%, with expectations to rise to 33.78% by 2026. In terms of raw numbers, the user base is expected to reach 3.51 million by 2026.   

According to Datareportal, approximately 16.3% of internet users aged 16+ owned some form of cryptocurrency in 2025. This interest is not just speculative; it is increasingly institutional. 

Source: Datareportal

Portugal is positioning itself as a European crypto hub, with a “National Blockchain Strategy” currently on the government’s agenda to align with the wider Digital Transition Action Plan.

Factors Driving Crypto Adoption in Portugal

Several factors have contributed to the growing adoption of cryptocurrencies in Portugal. Some of the key drivers include:

Source: Freepik

Favorable Tax Policies

Despite the introduction of taxes on short-term gains, Portugal remains highly attractive for long-term investors. The exemption on capital gains for assets held longer than 365 days distinguishes it from many other European jurisdictions. 

This encourages a “hold” strategy, aligning with investors looking to build long-term wealth rather than engage in high-frequency trading

Relaxed Regulations & Innovation Hubs

While MiCA is standardizing rules, Portugal actively fosters innovation through initiatives like the Portugal FinLab. This communication channel allows market players to engage directly with regulators (including the Bank of Portugal and CMVM) to navigate the system. 

Furthermore, “technological free zones,” or regulatory sandboxes, allow companies to test products with reduced regulatory burdens

Rising Awareness About Crypto

The Portuguese government has made significant efforts to promote innovation and entrepreneurship, which has naturally boosted awareness of cryptocurrencies and blockchain technology. 

Public discussions, educational events, and media coverage have all contributed to educating people about the potential of digital currencies. This growing knowledge is helping more people feel comfortable exploring crypto as an investment or payment method.

The Snowball Effect of Adoption

As more individuals and businesses in Portugal adopt cryptocurrencies, their popularity is spreading like wildfire. Early adopters and tech-savvy professionals started the trend, but now even small businesses like restaurants and cafes, retail stores, etc., and casual investors are joining in. 

This snowball effect is creating a vibrant ecosystem where crypto is no longer just for enthusiasts—it’s becoming a part of everyday life.

Government Support for Innovation

The Portuguese government is actively working on a National Blockchain Strategy. Additionally, in 2025, the CMVM (Portuguese Securities and Markets Commission) launched the second edition of the Market4Growth initiative to support innovative companies in accessing capital markets.

Initiatives such as the Digital Transitional Action Plan also encourage experimentation with new technologies. 

The creation of “Free Zones,” where companies can test innovative solutions without the burden of excessive regulation, demonstrates the government’s commitment to nurturing the crypto and blockchain industries.

Attractive Residency Programs

Portugal has also drawn international attention with its residency options, such as the Golden Visa and the D7 Visa. These programs appeal to global investors, including crypto enthusiasts, by offering the chance to live in a safe, beautiful country with a favorable tax regime. For those seeking a high quality of life and a crypto-friendly environment, Portugal has become a top choice.

Cryptocurrency Usage in Various Sectors

Portugal’s diverse economy has enabled cryptocurrencies to penetrate multiple sectors:

Source: Regulated United Europe

Real Estate

Portugal’s real estate market has seen increasing use of cryptocurrencies, especially in high-value transactions. For instance, in Lisbon, a luxury apartment was sold for 1.6 million euros in Bitcoin in 2021. 

This marked a significant moment in Portugal’s property market, demonstrating the potential for large-scale transactions using digital currencies. Other real estate firms are following suit, with crypto becoming an accepted method of payment for both residential and commercial properties.

Tourism and Hospitality

The tourism and hospitality sectors in Portugal have quickly adopted cryptocurrencies, particularly in cities like Lisbon, Porto, and Algarve. 

For example, Hotel Altis Belém in Lisbon allows guests to pay for their stays using Bitcoin and other digital currencies. Similarly, the LX Factory, a popular cultural and dining hub in Lisbon, accepts cryptocurrency payments for services such as dining and event bookings. This integration provides a convenient and borderless payment method, particularly for international visitors.

E-Commerce

Portugal’s e-commerce sector is rapidly incorporating cryptocurrency payments. One notable example is Xiaomi Portugal, which has started accepting Bitcoin and Ethereum for online purchases. 

This trend is mirrored by various other retailers, including Worten, a large electronics retailer, and smaller independent online stores, who are adopting cryptocurrency to attract a more tech-savvy customer base and offer a faster, more efficient payment option.

Education

Portugal’s educational institutions are starting to embrace cryptocurrencies. Universidade Europeia, a private university in Lisbon, has been one of the first in the country to accept Bitcoin and other cryptocurrencies for tuition payments. 

This move reflects Portugal’s growing openness to digital financial systems, especially among the younger, tech-forward student demographic. Additionally, Instituto Politécnico de Lisboa is reportedly exploring ways to integrate crypto payments for various student-related fees, signaling a commitment to innovation in education.

Challenges Facing Crypto Adoption in Portugal

Despite its progress, cryptocurrency adoption in Portugal faces several challenges:

Regulatory Uncertainty

While MiCA is technically applicable, the lack of national implementing legislation creates ambiguity. As of early 2025, no authority has been officially appointed to license new Crypto-Asset Service Providers (CASPs). This means new crypto businesses currently cannot set up official operations in Portugal until the law is passed and a supervisor is designated.

Lack of Awareness

Even with increasing adoption, a significant portion of the Portuguese population still lacks a clear understanding of how cryptocurrencies work. Many people are unaware of the potential benefits and risks, which slows down the overall acceptance and use of digital currencies in everyday life. 

Without widespread education and awareness campaigns, this gap in knowledge could remain a barrier to adoption.

Volatility Concerns

The value of cryptocurrencies is notoriously volatile, with prices fluctuating significantly in short periods. This unpredictability makes some individuals and businesses hesitant to use cryptocurrencies for payments or investments. For businesses, this could mean potential losses, while individuals may fear losing their hard-earned money due to market swings.

Banking Resistance

Traditional banks in Portugal have been cautious about dealing with cryptocurrency companies. This resistance creates difficulties for businesses that rely on banking services for operations, such as converting crypto to fiat currencies or accessing loans. 

Without the support of traditional financial institutions, it becomes harder for crypto-related ventures to integrate seamlessly into the broader economy.

The Potential for Cryptocurrency in Portugal

Portugal’s position as a crypto-friendly nation offers immense potential for growth:

Economic Diversification

Portugal’s embrace of cryptocurrencies has the potential to diversify its economy significantly. By positioning itself as a global crypto hub, the country can attract international talent and investments, creating new industries and opportunities. 

This diversification could reduce reliance on traditional sectors like tourism and agriculture, boosting Portugal’s resilience to economic challenges.

Decentralized Finance (DeFi)

The implementation of the DLT Regime (Decree-Law No. 66/2023) allows for the issuance and trading of financial instruments using distributed ledger technology. This opens the door for DeFi platforms to operate within a regulated structure, potentially revolutionizing how debt instruments and securities are handled in Portugal.

The rise of decentralized finance (DeFi) presents a unique opportunity for Portugal to become a leader in this innovative field. DeFi platforms, which offer financial services without traditional intermediaries, could provide alternatives to conventional banking systems. 

This shift could empower individuals and businesses, especially those excluded from traditional finance, and further solidify Portugal’s reputation as a pioneer in financial innovation.

Education and Skill Development

Investing in education and skill development around blockchain and cryptocurrency can have a long-lasting impact on Portugal’s economy. Programs aimed at teaching blockchain development, crypto trading, and digital asset management could foster innovation, create jobs, and prepare the younger generation for a digital future. 

These efforts could also help bridge the knowledge gap, encouraging broader adoption of these technologies.

Blockchain Integration

Beyond the use of cryptocurrencies, blockchain technology itself holds immense potential for Portugal. It could revolutionize industries such as supply chain management, healthcare, and public administration by increasing transparency, efficiency, and security. 

For instance, blockchain could streamline logistics, improve patient data management, or enable secure and transparent voting systems.

Bottom Line

Portugal is proving that it can mature from an unregulated “crypto haven” into a sophisticated, regulated hub for digital assets. With a projected market revenue of US$317.2m in 2025  and a tax regime that still rewards long-term conviction, Portugal remains one of the most attractive destinations in Europe for crypto investors.   

As the government finalizes the implementation of MiCA and designates regulatory authorities later in 2025, the market is poised for its next phase of professionalization and growth.

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