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.
Portugal Crypto Tax: Key Takeaways
Is cryptocurrency taxed in Portugal?
In 2023, Portugal introduced new taxes on cryptocurrencies in 2023, and you won’t be taxed unless it is your regular professional activity.
If that’s the case:
- 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.
However, that’s not always the case with long-term capital gains. Certain types of tokens, where assets are linked to non‑cooperative jurisdictions or where there are separate rules for staking, lending, and other “passive” crypto income, are 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
A dedicated tax regime for cryptoassets was introduced in 2023, changing how you are taxed on cryptocurrency transactions.
Portugal has also adopted the European Union’s Markets in Crypto-Assets (MiCA) regulation, which establishes comprehensive transparency, liquidity, and consumer protection standards within the cryptocurrency industry.
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)
When filing your annual taxes, you must report your crypto transactions and gains in the annual IRS (Modelo 3) tax return, even when those gains are long‑term and exempt, so “tax‑free” doesn’t mean “no reporting.”
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.
How Crypto is Taxed in Portugal
Following Portugal’s Personal Income Tax Code (PIT Code), crypto income is taxed as follows:
01/ Personal income tax (Category B)
In Portugal, how your crypto income is taxed depends on the type of activity and the source of the income.
Simply buying, holding, or transferring Bitcoin or other crypto-assets is not taxed. However, if you use crypto as part of a transaction for goods or services, you must issue an invoice, and the income is taxed in the same way as any other business activity.
If you earn crypto through activities such as mining or validating transactions, and you do this as part of a business or professional activity, the income falls under Category B. This means it is taxed as business or self-employment income.
If your crypto earnings are not linked to a business or professional activity, they are treated as investment income under Category E. This type of income is taxed at a flat rate of 28 percent, regardless of how you receive it, and no withholding tax applies.
When you receive crypto as payment, it is also relevant for capital gains tax purposes under Category G. However, you do not pay tax at the moment you receive it. Tax is only triggered later, when you sell or exchange those crypto-assets.
02/ Corporate income tax (Category E)
Capital income refers to passive earnings you make from assets you already hold, rather than from actively trading or working. In crypto, this includes staking rewards, lending interest, and yield from farming strategies. In simple terms, you are earning a return on your holdings without actively buying and selling.
In Portugal, this type of income usually falls under Category E. It is typically taxed at a flat rate of 28 percent. The tax is calculated based on the euro value of the income at the moment you convert it into cash or receive it in cash form.
You can also include this income with your other earnings, such as salary or business income. If you choose this route, your income will be taxed at Portugal’s progressive income tax rates rather than the flat 28 percent.
03/ Capital gains tax (Category G)
When you sell crypto-assets at a profit, this is treated as capital gains income, known as Category G. Whether you pay tax depends mainly on how long you held the crypto before selling.
If you held the crypto for less than one year, any profit is taxed at a flat rate of 28 percent. If you held it for more than one year, the profit is generally tax-free. This exemption does not apply to crypto-assets that are classified as securities.
If you trade one crypto asset for another, no tax is applied at that moment. Instead, the new asset takes on the same value as the one you gave up. You only pay tax later, when you sell that new asset for cash or exchange it for something that triggers taxation.
There is an important exception to keep in mind. These tax benefits, both the one-year exemption and the deferral on crypto-to-crypto trades, do not apply if you are a tax resident outside the EU, the European Economic Area, or a country that does not share tax information with Portugal.
Cryptocurrency Tax Laws in Portugal
Portuguese tax law officially follows EU regulations on cryptocurrency, which stipulate that capital gains from buying or selling cryptocurrency are not 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 or use of cryptocurrency
- Profit derived from the sale of products or services for cryptocurrency
This has seemingly created a contradiction, leading to a court case where Portugal’s tax authority agreed that exchanging cryptocurrencies for fiat money (or vice versa) is exempt from VAT.
This means that when you are buying, selling, or spending mainstream cryptocurrencies, you don’t 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.
On the other hand, 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, cryptocurrency investment and trading are facing ever-tightening regulations, causing many problems, 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
Portugal allows the use of cryptocurrencies to pay for services, and 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.
Lighter cryptocurrency regulations
With calls for increased regulation and scrutiny in the US and other countries, Portugal’s appeal to crypto investors lies in the ease of trading.
For example, 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 for non-EU nationals who invest a minimum of €250,000 or €500,000 (depending on the route) into a qualifying investment option, in exchange for residency.
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 with exposure to cryptocurrencies, while all qualifying funds ultimately reach Portugal in Euros through a bank.
After five years of residency in Portugal, you can apply for permanent residency and/or Portuguese citizenship.
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
In April 2026, Portugal's parliament approved key amendments to 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, but 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.
For the latest information regarding these changes, read Portugal Nationality and Citizenship Changes 2026.
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.
