Portugal introduced a comprehensive statutory framework for the taxation of crypto assets with effect from 1 January 2023, under Lei n.º 24-D/2022 of 30 December 2022 (the State Budget Law for 2023), which amended the Código do Imposto sobre o Rendimento das Pessoas Singulares (IRS Code, the personal income tax code).
Prior to this change, Portugal had a reputation as a crypto-friendly jurisdiction due to the absence of specific rules, which many interpreted as meaning crypto gains were untaxed for private individuals.
The 2023 reforms ended that ambiguity and established a framework that has remained in force through 2026.
Capital Gains Tax Rules
Capital gains from crypto assets held by Portuguese tax residents are governed by the Category G rules in the IRS Code, as amended by Lei n.º 24-D/2022.
A disposal is any transfer of crypto assets for consideration, whether for fiat currency, other assets, goods, or services. The gain is calculated as the proceeds of the transfer minus the acquisition cost, with the cost base including any directly attributable acquisition expenses.
Holding period exemption and crypto-to-crypto swaps
The most significant feature of the Portuguese framework for long-term investors is the holding period exemption.
Gains from the disposal of crypto assets held for 365 days or more are entirely exempt from tax. For assets held for less than 365 days, the gain is taxable at a flat rate of 28%. Additionally, under the specific IRS rules applicable to crypto, where a crypto asset held for less than 365 days is exchanged and the consideration received is also a crypto asset rather than fiat or other property, the transaction is not treated as a taxable disposal.
This effectively means that crypto-to-crypto swaps among shorter-term holders are deferred events, with the original acquisition date and cost carrying over to the newly received asset.
How CGT is calculated
For taxable disposals (assets held under 365 days, or exchanges for fiat/non-crypto consideration), the gain is the transfer value minus the acquisition value.
The transfer value is the market value of the consideration received. The acquisition value is the price originally paid, including any documented acquisition costs. Where crypto assets were received through mining, staking, or as investment returns, the deemed cost base on subsequent disposal is the value at which the income was recognised.
Losses and record keeping
Losses from the disposal of crypto assets within the taxable category may be offset against gains of the same type in the same tax year. The ability to carry losses forward or offset them against other categories of income depends on the specific IRS rules for Category G.
Taxpayers must retain complete records of all crypto transactions, including acquisition dates and prices, disposal dates and values, and the nature of each transaction, to support the application of the holding period exemption and the calculation of any taxable gain.
Income Tax Rules
The Portuguese IRS framework distinguishes between capital gains from investment disposals (Category G), commercial income from active crypto operations (Category B), and passive investment returns from crypto (Category E).
Category B applies where the taxpayer’s crypto activity constitutes a commercial or industrial activity in a formal sense. This includes operating a mining business, running a staking service as a validator, and similar active operations. Category B income is taxed at progressive personal income tax rates, which can reach the higher bands of the IRS scale depending on total income.
Category E investment income covers returns derived from the deployment of crypto assets where the activity does not amount to a commercial operation. Delegated staking returns, lending yields, and similar passive income streams from crypto fall under Category E and are taxed at a flat rate of 28%.
However, a specific rule applies where Category E income is received in the form of crypto assets rather than fiat: in that case, the income is not taxed immediately as Category E investment income. Instead, it is reclassified as a Category G capital gain, and taxation is deferred until the crypto received as income is itself disposed of for consideration. The holding period exemption may then apply if the asset is held for 365 days from receipt.
Crypto received as salary or employment income is included in Category A (employment income) at the market value in euros on the date of receipt. This value also becomes the cost base for any subsequent disposal. The termination of self-employment activity involving crypto, and the departure of a taxpayer from Portuguese tax residency, both constitute deemed disposals of crypto assets held at that time, triggering a capital gains assessment on the market value at the date of the deemed disposal.
Mining and Staking Treatment
Mining
Mining activities, including proof-of-work mining and on-chain transaction validation, are classified as commercial and industrial income under Category B of the IRS Code.
This means that a miner operating as a sole trader or through a registered business entity in Portugal is required to register for activity purposes and report mining income under their business accounts. The income from mining is recognised at the point at which the mined crypto assets are transferred for consideration, rather than at the point of creation.
Expenses directly related to the mining activity, including hardware, electricity, and operating costs, should be deductible in the computation of taxable Category B income, subject to the general rules on business expense deductibility under the IRS Code.
The CGT implications of later disposal depend on whether the mined assets are held as business stock or personal investment assets. Where they remain within the scope of the mining business and are later sold, the proceeds are business income. Where the miner withdraws assets into personal holdings, the disposal on exit from the business at market value may constitute a taxable event. The interaction between the business income and capital gains rules for miners is complex, and professional advice is recommended.
Staking
Under the framework established by Lei n.º 24-D/2022, staking through consensus mechanisms, including proof-of-stake validation, is classified as a commercial and industrial activity under Category B. Income from this activity is recognised at the point the staking rewards are transferred for consideration, not on receipt. This deferral feature means that staking rewards held in a wallet without being sold or exchanged do not trigger immediate tax liability.
Passive staking, such as delegated staking where a holder does not act as a validator but delegates to a pool, is more likely to fall under Category E investment income.
As noted above, where Category E returns are received in the form of crypto, they are reclassified as Category G capital gains deferred to the point of disposal, with the potential for the holding period exemption to apply. The distinction between active consensus-mechanism staking (Category B) and passive delegated staking (Category E, potentially reclassified to Category G) is an important one and may require assessment against the specific characteristics of each protocol.
NFT Taxation
Standard, fungible crypto assets that are not unique fall within the crypto asset definition under Lei n.º 24-D/2022. Unique and non-fungible crypto assets, such as most NFTs in the traditional artistic or collectible sense, are explicitly excluded from this definition. This means the specific crypto tax rules, including the 365-day holding period exemption and the 28% Category G rate, do not automatically apply to NFTs.
The tax treatment of NFTs held by private investors in Portugal is not fully settled as of 2026. The most likely position under general IRS principles is that gains from the sale of NFTs held as personal property are capital gains taxable under Category G, but without the benefit of the specific crypto asset holding period exemption.
The applicable rate would be 28%. For NFT creators who produce and sell NFTs as a commercial activity, the proceeds constitute Category B business or professional income, taxed at progressive IRS rates. Platform fees and costs of production should be deductible against that income.
As of 2026, Portugal has not published specific guidance on the VAT treatment of NFT transactions or the tax treatment of NFT royalty streams paid to creators on secondary market sales. The Autoridade Tributária e Aduaneira (AT) is expected to issue further guidance as the market matures. Creators and investors transacting in NFTs at significant scale should seek specific professional advice.
Reporting Requirements
Portuguese taxpayers report their crypto asset income and gains through the annual IRS return (Modelo 3) filed with the Autoridade Tributária e Aduaneira via the Portal das Finanças (www.portaldasfinancas.gov.pt).
Gains from crypto asset disposals are declared in Annex G (capital gains). Category B income from mining or commercial staking is declared in Annex B (business and professional income, simplified regime) or Annex C (business income under organised accounting). Category E investment income from passive crypto returns is declared in Annex E.
The annual IRS return filing period runs from 1 April to 30 June of the year following the tax year. For the 2025 tax year, the deadline is 30 June 2026. All values must be expressed in euros. Where crypto was acquired or disposed of in a non-euro currency, taxpayers must convert values using the applicable exchange rate at the date of each transaction.
Taxpayers must maintain comprehensive records of all crypto transactions to support the figures declared in the IRS return and to evidence the application of the holding period exemption where claimed. Records should include the acquisition date and price of each asset, the disposal date and proceeds, the method of calculation used, and any documentation supporting the classification of the transaction as exempt. The statutory retention period for tax records in Portugal is generally four years, though it is prudent to retain crypto records for a longer period given the potential for complex audit questions.
The AT participates in the EU’s DAC8 data-sharing framework, under which crypto asset service providers with EU clients are required to share customer data with the relevant tax authority from 2026. This significantly increases the AT’s ability to cross-reference declared crypto activity with information obtained from exchanges and service providers.
Penalties
The Autoridade Tributária e Aduaneira operates a penalty framework under the Regime Geral das Infrações Tributárias (RGIT). Failure to file a tax return, underreporting of income or gains, or concealment of taxable events can give rise to administrative penalties, interest on unpaid tax, and in serious cases criminal liability.
Administrative penalties for late filing of the IRS return range from €25 to €3,750 depending on the circumstances. Penalties for omission or falsification of information in the return can be substantially higher, ranging from €375 to €22,500, with the upper end reserved for deliberate fraud. Unpaid tax carries interest at the statutory rate, calculated from the original payment due date. In cases of deliberate tax evasion exceeding €15,000, criminal liability under the RGIT may arise, with penalties including fines and imprisonment.
Taxpayers who have not previously reported crypto gains have the option of voluntary regularisation. Approaching the AT before it initiates a formal inquiry generally results in lower penalties than a correction prompted by an audit. Given the enhanced data-sharing capabilities introduced by DAC8, and the AT’s growing focus on digital asset compliance, taxpayers with unreported positions should consider taking professional advice on regularising their affairs promptly.
