Portugal -- Cryptocurrency Tax Framework Regulatory Overview

Portugal taxes cryptocurrency (crypto) assets under personal income tax (PIT) rules introduced in the 2023 State Budget, classifying them primarily as capital gains (Category G) or capital income (Category E), with long-term gains often exempt. Short-term capital gains (assets held <365 days) from selling crypto for fiat are taxed at a flat **28%** rate (or progressive rates up to 53% if total income exceeds €83,696 or via aggregation option); long-term gains (>365 days) are tax-free unless involving securities, blacklisted jurisdictions, or specific conditions.[1][2][3][4][7]

Capital Gains Tax (PIT Category G)

• Applies to profits from selling or disposing of cryptoassets not classified as securities.
• Short-term (<365 days): 28% flat rate; aggregation possible for progressive IRS brackets (14.5%-53% for 2026), mandatory if total income exceeds top bracket.[1][2][3][4]
• Long-term (>365 days): Exempt from tax, but transactions must still be reported.[1][2][3][4][7]
• Crypto-to-crypto swaps are non-taxable, deferring gains until fiat conversion.[5][7]
• Exceptions: 35% rate for blacklisted jurisdiction assets; no exemption if treated as securities.[3][4]

Income Tax on Crypto (PIT Category E)

• Covers passive income like staking rewards, lending yields, airdrops, or DeFi yields: taxed at 28% flat rate regardless of holding period (aggregation option to progressive rates up to 53%).[2][4][5][7][8]
• Professional trading, mining, or business-scale activities taxed as business income (Category B) at progressive rates 14.5%-53%.[4]
• If remuneration received in crypto, treated as Category G (deferred until sale).[7]

VAT/GST Treatment

Search results do not specify VAT/GST on crypto transactions; general EU rules may apply to certain services, but no crypto-specific VAT mentioned.[1-8]

Reporting Requirements

Individuals:

• Use Anexo G (Table 9) for capital gains: report short-term (taxable) and long-term (exempt) disposals separately.[4]
• Anexo E (Table 8), for passive income like staking.[4]
• All long-term/exempt transactions reported in annual IRS return despite no tax.[3][4]
• Keep records of acquisition dates, costs, and disposals for compliance.[6]

Businesses: Taxed under corporate income tax (CIT); e.g., Madeira regime at ~11.9%. Report via standard CIT filings; specifics not detailed for crypto.[5]

Crypto-Specific Legislation

Rules stem from 2023 Orçamento do Estado (State Budget), amending PIT Code (CIRS):

• Article 10 (Category G gains).[7]
• No standalone crypto law; integrated into existing PIT framework.[1][7]
• Official tax authority: Autoridade Tributária e Aduaneira (AT) / Portal das Finanças (https://www.portaldasfinancas.gov.pt) for IRS forms/guides. PwC notes crypto as Category G with 365-day relief (https://taxsummaries.pwc.com/portugal/individual/other-issues).[7]

Notes: Rates/rules apply to tax residents; non-residents taxed at 25% on Portuguese-sourced income. NHR program may offer benefits (e.g., 20% flat on certain income). Consult AT or advisor for 2026 updates, as rules post-2023.[2][5] Sources are secondary; primary law via CIRS on Portal das Finanças.