Portugal crypto taxes law: unpacking the latest crypto regulation
Portugal used to be a crypto tax haven until 2023 when the country started applying a 28% tax on short-term crypto gains from selling crypto held for less than a year.
In February 2024, the country passed a bill that obliges crypto holders to declare their crypto assets in an annual IRS tax declaration.
Legal and Compliance Officer, certified CAMS specialist
Portugal crypto taxes law: unpacking the latest crypto regulation
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Long-term crypto gains are still tax-free in Portugal. Crypto holders also do not have to pay taxes for crypto-to-crypto sales and non-fungible crypto assets, such as NFTs.
However, income from the sale of crypto assets will be required to be declared as a part of IRS, Imposto sobre o Rendimento das Pessoas Singulares, which is an individual income tax. The law establishing these conditions came into force in February.
Crypto assets gains are to be declared in either Appendix G, which contains information on capital gains, or Appendix B, which is for self-employed people and their income if they are registered as independent professionals engaged in the buying and selling of crypto assets.
Income from the sale of crypto assets with a holding period of less than a year is taxed at a 28% rate. If they were held for more than a year, the taxpayer is exempt from paying any tax but must declare the capital gain in Appendix B.
Here’s a part of Appendix G, which should contain information on any income sourced from crypto. This Appendix is added to the annual personal income tax declaration
Is Portugal a tax haven?
Portugal remains a notably tax-friendly destination, though the NHR regime was discontinued in January 2024. Despite this change, certain non-residents can still benefit from a favourable income tax rate of 20%.
Relocating to Portugal and acquiring a residency permit is attainable through the Golden Visa program. This visa is accessible to foreign nationals who invest a minimum of €250,000 in the country’s economy. Investment avenues include bolstering arts and cultural heritage, funding research endeavours, purchasing units in investment funds, establishing a new business, or injecting capital into an existing enterprise.
The residency permit initially spans two years and is renewable, with the possibility of extension. Following a five-year period after requesting a residence permit, the investor and their family are eligible to apply for citizenship.
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