Known for not taxing most cryptocurrency gains, Portugal has long been considered a crypto-friendly environment.
While 2023 brought changes with new taxes on certain cryptocurrency transactions, Portugal remains an attractive option for reducing crypto tax obligations.
In this article, we provide an overview of Portugal’s crypto tax in 2025, how cryptocurrencies are now taxed in Portugal, what has changed, and what these updates mean for crypto investors and users.
Is cryptocurrency taxed in Portugal?
Cryptocurrency is not taxed in Portugal for individuals unless it is a regular professional activity. In 2023, Portugal introduced new taxes on cryptocurrencies. Short-term capital gains (if you sell/dispose of crypto after less than 365 days) are subject to a 28% tax.
Long-term capital gains (if you sell/dispose of crypto after more than 365 days) are generally tax-free, but there are some caveats. Exemptions may not apply to certain types of tokens (for example, tokenized securities) or where assets are linked to non‑cooperative jurisdictions, and there are separate rules for staking, lending, and other “passive” crypto income, which are often taxed at 28 percent.
These tax rates make Portugal one of the most crypto-friendly countries in the Western world. In fact, according to our Global Intelligence Unit’s latest Global Crypto-Friendly Nations report, Portugal ranks 6th, scoring better than Germany and Malta.
Portugal’s Crypto Tax Regime
Under Portugal’s 2023 State Budget, a dedicated tax regime for cryptoassets was introduced, changing how individuals are taxed on cryptocurrency transactions.
Short‑term capital gains on crypto held for less than 365 days are generally taxed at a flat 28 percent, while gains on qualifying long‑term holdings (kept for more than 365 days and not treated as securities or linked to certain jurisdictions) are usually exempt.
The law classifies crypto‑related income into three main buckets under the Personal Income Tax Code, each with its own rules and rates:
- Investment income (capital, Category E),
- Capital gains (Category G),
- Business or professional income (self‑employment, Category B)
Since 2024, individuals must also report their crypto transactions and gains in the annual IRS (Modelo 3) tax return, even when those gains are long‑term and exempt, so “tax‑free” no longer means “no reporting.”
In practice, this specific regime means that profits from digital assets held for under one year are usually taxed at 28 percent, while gains from crypto held for more than one year can be tax‑exempt if the legal conditions are met.
Income from activities such as issuing tokens, mining, or validating transactions is treated as business or professional income and taxed at progressive rates, rather than under the simple 28 percent capital‑gains rule.
Regulatory shifts
Portugal has adopted the European Union’s Markets in Crypto-Assets (MiCA) regulation, which will be fully enforced by December 2024. MiCA establishes comprehensive transparency, liquidity, and consumer protection standards within the cryptocurrency industry.
To comply with these regulations, exchanges like Coinbase have announced plans to delist certain stablecoins in the European Economic Area by the end of the year.
How is crypto taxed in Portugal?
Following Portugal’s Personal Income Tax Code (PIT Code), crypto income is taxed as follows:
01/ Personal income tax (Category B)
Income tax in Portugal is based upon activity and its profit. This means that while Portugal Bitcoin transactions are not taxed, if the transfer of Portugal cryptocurrency is associated with a product or a service, then an invoice must be issued, and the service must also be taxed.
If you earn money from creating crypto assets (like mining) or validating crypto transactions as part of a business or profession, this income is taxed as business or professional income (Category B).
However, if your crypto earnings are not tied to a business or profession, they count as investment income (Category E). This income is taxed at a flat rate of 28% with no withholding tax, no matter how the income is received.
Receiving other crypto assets as payment incurs capital gains tax (Category G). However, you only pay tax on it when you sell or exchange those crypto assets.
02/ Corporate income tax (Category E)
Capital Income covers passive returns generated by applying your assets, including certain types of crypto. In the crypto context, this typically includes staking rewards, interest from lending, yield‑farming returns, or similar “coupon‑like” income where you are not actively trading but earning a yield on tokens you already hold.
Category E crypto income is generally taxed at a flat 28 percent, calculated on the fair market value of the income in Euros when it is received in fiat or when it is converted into fiat. Taxpayers can usually opt to aggregate this income with other personal income and be taxed at progressive rates instead
03/ Capital gains tax (Category G)
Profits from selling crypto-assets are treated as Category G income and are liable for capital gains tax. The rules vary based on how long the crypto assets are held. If you hold crypto-assets for less than one year, the profits are taxed at a flat rate of 28%. However, if you hold crypto-assets for more than one year, the profits are tax-free (this doesn’t apply to crypto-assets classified as securities).
For Crypto-to-crypto transactions, where you trade one crypto-asset for another, the new crypto is given the same value as the one you traded away. Taxes are only applied when you eventually sell or exchange the new crypto for money or other taxable assets.
This is an exception, though. The tax exemption and deferral don’t apply if you’re a tax resident outside the EU, the European Economic Area, or a country without a tax information-sharing agreement with Portugal.
Cryptocurrency Tax Laws in Portugal
The Portuguese tax law officially follows EU regulation on cryptocurrency, which stipulates that capital gains from the buying or selling of cryptocurrency should not be subject to VAT. However, while Portugal follows EU guidelines on digital currency regulations, Portuguese authorities have affirmed that crypto will be treated the same as other currencies, not just as an asset.
Cryptocurrencies, as with other types of currency, can generate income in several different ways:
- Capital gains from the sale and purchase of coins
- Profit from commissions charged in services relating to the acquisition of use of cryptocurrency
- Profit derived from the sale of products or services for cryptocurrency
Value Added Tax on Crypto
Portugal’s tax laws don’t specifically address how Value-Added Tax (VAT) applies to cryptocurrency transactions. However, guidance from the Court of Justice of the European Union (CJEU) and rulings from Portugal’s Tax Authority help clarify the situation.
The CJEU and the Tax Authority agree that exchanging cryptocurrencies for fiat money (or vice versa) is exempt from VAT. This position was confirmed in two rulings issued by the Tax Authority in 2019, considered essential references for interpreting VAT rules on cryptocurrencies in Portugal.
In practice, this means that individual investors buying, selling, or spending mainstream cryptocurrencies do not incur VAT on those transactions in Portugal, even though other taxes (such as personal income tax on short‑term gains or business tax for professional activity) may still apply.
However, businesses providing crypto‑related services remain fully within the VAT system for their normal supplies, and only the specific exchange/payment leg involving crypto benefits from the VAT exemption under the harmonized EU rules.
Why is Portugal best for cryptocurrency traders?
In many countries worldwide, cryptocurrency investment and trading are facing ever-tightening regulations. This can cause problems specifically for crypto investors in the US, where having American residence can create difficulties, especially during coin mining.
Here are a few reasons why Portugal is considered one of the best places for cryptocurrency traders:
You can pay for services in cryptocurrency
As Portugal increasingly allows the use of cryptocurrencies to pay for services, companies like Global Citizen Solutions are revolutionizing how investors can pay for Golden Visa services.
Currently, you can pay for Global Citizen Solutions’ services in cryptocurrencies like Ripple, Bitcoin, and Ethereum. Payment is accepted through the trusted portal Coingate.
There has been a recent growth in businesses dealing with cryptocurrency in Portugal, one of which is Utrust, which enables cryptocurrency payments for businesses.
Lighter cryptocurrency regulations
Portugal’s allure to crypto-investors lies in the ease of trading. In recent years, cryptocurrencies have come under increased scrutiny in many countries, particularly in the US, where there have been calls for increased regulation.
As a result, ICOs (Initial Coin Offerings) will not accept those with US addresses or residences. For this reason, obtaining residency or even citizenship in a cryptocurrency-friendly country like Portugal makes sense.
According to Pedro Solimano, a cryptocurrency journalist who was featured as a guest speaker during GCS’ Cryptocurrency Live Stream, several countries like Portugal are establishing a 0% tax on capital gains.
“Countries with crypto-friendly tax regimes offer tax advantages for crypto traders, companies, and investors. Places like Switzerland, Portugal, Liechtenstein, Dubai, El Salvador, Hong Kong, and Singapore may not all have zero tax, but they typically impose lower taxes and have structures designed to benefit those trading or investing in crypto,” says Solimano.
Bitcoin ATMs in Portugal
There are several different places in Portugal where you can complete cryptocurrency transactions with crypto visa cards, such as withdraw Bitcoin and other cryptocurrency earnings, including three Bitcoin ATMs in Lisbon.
VAT is not charged on crypto transactions
Additionally, crypto isn’t subject to VAT in Portugal. This relatively lenient and clear tax structure helps Portugal maintain its reputation as a crypto-friendly destination.
Portugal Golden Visa Cryptocurrency
The Portugal Golden Visa program is an attractive scheme that enables non-EU nationals to obtain residency with a minimum investment of €250,000 in venture capital funds, businesses in the country, or Portuguese national heritage. It can be particularly useful for cryptocurrency traders, as it can provide extra security against future regulations in their home countries.
Crypto investors can apply for the Golden Visa program, but not by directly investing Bitcoin or other cryptocurrencies into the government’s system. You can qualify using crypto-derived wealth or by choosing a CMVM‑regulated Golden Visa fund that has exposure to cryptocurrencies, while all qualifying money ultimately reaches Portugal in Euros through a bank.
Here’s how it works
Portugal still requires the qualifying Golden Visa investment (minimum €250,000 in certain options) to be made in Euros into an eligible Portuguese fund or vehicle, not in crypto itself.
However, Portuguese banks can accept cash‑outs from cryptocurrency and issue the bank declaration the immigration authority needs, so you can liquidate your crypto, send the fiat to your Portuguese account, and then invest from there.
Several CMVM‑regulated funds now qualify for the Golden Visa and hold a portion of their portfolio in Bitcoin or other blockchain‑related assets, while still meeting the rule that at least 60 percent of capital is invested in Portuguese companies and that real‑estate exposure is excluded.
These “crypto” or “Bitcoin‑linked” Golden Visa funds typically require the standard €500,000 subscription, maintain a five‑year minimum term, and are structured so that you get both residency eligibility and indirect exposure to digital assets.
⚠️ Update on Portugal's Nationality Law Changes
On 28 October 2025, Portugal's parliament approved key amendments of the Nationality Law, including increasing the residency requirement for citizenship from 5 to 10 years, and 7 years for CPLP nationals and EU citizens. This will significantly impact how visa holders and residents acquire citizenship.
However, these changes are not yet law. They must still undergo Presidential review where the President may promulgate the law, issue a veto, or request a review by the Constitutional Court. The final text may still be amended but they might not be enacted because the law is not final until its promulgated.
For the latest information regarding these changes, read Portugal Nationality and Citizenship Changes 2025
Economic Stability and Innovation Makes Portugal a Hotspot for Businesses
Since the financial crisis, successive governments in Portugal have introduced several incentives to encourage foreign investment.
The result? Today, Portugal’s economy is in better shape than it has been for decades.
This is mainly due to a few very successful measures that have brought billions of euros worth of investment to Portugal and a sudden surge in popularity in the country’s tourism sector.
The Portugal Golden Visa program, in particular, has helped to boost foreign investment and is responsible for at least 6.8 billion euros worth of investment in Portuguese property. The non-habitual tax regime has helped to attract many professionals of high cultural and economic cost to the country.
The Portugal Digital Nomad Visa, launched in 2022, further proves that Portugal is cementing itself as an outward-looking country. It is attracting many young professionals and remote workers earning a foreign income, including EU citizens.
The Portugal D7 Visa, or the Retirement Visa or Passive Income Visa, was introduced in 2007. Obtaining the D7 Visa allows non-EU citizens, non-EEA or non-Swiss citizens to apply for a residency permit in Portugal, provided they have a monthly passive income of €870.00 or more and sufficient funds in a Portuguese bank account to sustain themselves during their stay in Portugal.
Eventually, Portugal D7 Visa holders may become Portuguese citizens and, therefore, Portuguese tax residents. The Portugal D7 Visa proves to be a successful endeavor to strengthen the Portuguese economy.
Low living costs, flexible Portuguese cryptocurrency tax laws, and a high quality of life make Portugal an excellent place to live and start a business. The country has attracted many entrepreneurs and professionals from across the globe. Both the economy and the property market have been undergoing periods of stable growth, which is forecast to continue in the coming years.
Why choose Global Citizen Solutions for your Immigration Visa?
GLOBAL APPROACH BY LOCAL EXPERTS
- GCS has offices located across Portugal.
- Members of the US-Portugal and UK-Portugal Chambers of Commerce in Portugal, and the Investment Migration Council (IMC).
- Our expert team can help you throughout your journey to secure your Visa.
100% APPROVAL RATE
- Our successful track record in applications provides reassurance to applicants.
- We have helped clients from more than 35 countries secure residency in Portugal.
ALL-ENCOMPASSING SOLUTION
- With a single channel of communication, our approach ensures that you have complete clarity on your application.
- Our BeGlobal® Onboarding System allows for a total flow of information.
TRANSPARENCY AND PRIVACY
- Our pricing is clear and detailed, you will not face any hidden costs.
- All data is stored within a GDPR-compliant database on a secure SSL-encrypted server.
