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Portugal Crypto Tax Guide 2026

By Taxpert Editorial · Last reviewed: 26 April 2026

Portugal introduced formal crypto-asset tax rules in 2023, ending the previous informal exemption. The headline rule remains highly attractive: crypto held for more than 365 days is fully exempt from IRS. This guide explains when the exemption applies, how trading gains are taxed, and how to report crypto on your Modelo 3.

The 365-day exemption

Under Art. 10(1)(k) and 10(19) CIRS, gains from disposing of crypto-assets held for more than 365 days are exempt from Portuguese IRS. "Disposing" includes selling to fiat, trading to another crypto, spending, or gifting. The holding period is calculated on a FIFO (first-in, first-out) basis per asset.

• BTC purchased 1 January 2023, sold 5 January 2024 (370 days): exempt
• BTC purchased 1 January 2024, sold 31 December 2024 (365 days): not exempt (must be strictly greater than 365 days)
• ETH purchased 1 February 2022, sold 1 March 2026 (>4 years): exempt

Short-term trading (held ≤365 days)

Gains from crypto disposed of within 365 days of acquisition are Category G capital gains, taxed at 28% flat. The gain is calculated as: disposal proceeds minus acquisition cost (in euros at the exchange rate on acquisition date) minus documented costs.

Losses from short-term crypto disposals can offset gains from other short-term crypto disposals in the same tax year, but cannot be carried forward and cannot offset other Category G assets (shares, real estate).

Crypto-to-crypto trades

A crypto-to-crypto trade (e.g., BTC → ETH) is treated as a disposal of the sold asset and acquisition of the received asset. If the BTC was held for less than 365 days, the gain on the BTC (measured in euros at the time of the trade) is a taxable event. The new ETH acquisition cost is the market value at the time of the trade.

This means that long-term hold strategies benefit significantly: holding BTC for 365+ days before trading into ETH eliminates tax on the BTC gain.

Staking, mining, and DeFi income

Income from crypto activities not related to capital gains is treated differently:

• Mining income: Category B (self-employment income). The market value of mined crypto on the date of receipt is taxable income. Subject to progressive IRS brackets and social security obligations.
• Staking rewards: Generally treated as Cat. B income (self-employment or capital income, depending on AT interpretation). Taxed at the market value on receipt.
• DeFi yield farming / liquidity provision: Similar to staking — AT has not issued definitive guidance, but the prevailing view is Cat. E (investment income) or Cat. B income, taxed at 28% or progressive rates respectively.
• Airdrops: Treated as income at market value on receipt. Classification is unsettled — Cat. E or Cat. G depending on circumstances.

Non-residents and crypto

Non-residents are taxed at 28% on crypto gains arising from Portuguese-source transactions. However, defining "Portuguese source" for crypto is complex — gains typically follow the residence of the taxpayer, not the exchange. Many non-residents may have no Portuguese IRS obligation on crypto if they use foreign exchanges and the transactions have no Portuguese nexus.

Reporting crypto in Modelo 3

Crypto gains/losses are reported in Annex G of Modelo 3. You must declare:

• Asset description (e.g., "Bitcoin — BTC")
• Acquisition date and cost (in EUR)
• Disposal date and proceeds (in EUR)
• Whether held >365 days (exempt) or ≤365 days (taxable)

AT has not yet mandated exchange reporting in Portugal, but voluntary reporting is required. Maintain detailed records from all exchanges (CSV exports, wallet history). Tax software that connects to exchanges (Koinly, CoinTracking, Accointing) can help produce the required AT format.

IFICI and crypto

IFICI applies only to Cat. A and Cat. B income — not Cat. G capital gains. Crypto trading gains are Cat. G regardless of whether you hold IFICI status. The 365-day exemption applies equally to IFICI holders and standard IRS filers.

Frequently asked questions

Is crypto tax-free in Portugal?

Only partly. Gains from crypto-assets held for more than 365 days are fully exempt from Portuguese IRS under Art. 10(1)(k) and 10(19) CIRS. Gains on crypto held for 365 days or less are Category G capital gains taxed at a flat 28%. Income from staking, mining, or DeFi yield is not covered by the holding-period exemption — it is taxed as Cat. B (self-employment) or Cat. E (investment income).

How is the 365-day holding period calculated?

The holding period is calculated on a FIFO (first-in, first-out) basis per asset. The exemption requires strictly more than 365 days — exactly 365 days is taxable. A crypto-to-crypto trade resets the holding period: trading BTC into ETH after 200 days means the new ETH starts a fresh holding period from the trade date.

Are crypto-to-crypto trades a taxable event in Portugal?

Yes. A crypto-to-crypto trade is treated as a disposal of the sold asset and acquisition of the received asset. If the sold asset was held for 365 days or fewer, the gain (in euros at the time of the trade) is taxable at 28%. If held more than 365 days, the gain is exempt. The new asset is acquired at its market value on the trade date.

How are staking rewards taxed in Portugal?

Staking rewards are generally classified as Category B (self-employment) income or Category E (investment income), depending on AT interpretation and the structure of the activity. Cat. B income is taxed at progressive IRS rates and may trigger social-security obligations; Cat. E investment income is taxed at a flat 28%. The taxable amount is the market value of the rewards on the date of receipt. AT has not issued definitive guidance covering all DeFi yield structures.