Portugal
FavorableBitcoin & cryptocurrency tax overview
Capital Gains Tax
Gains from crypto held less than 365 days are taxed at a flat 28% rate. Gains from crypto held 365 days or more are exempt from capital gains tax. Losses can offset gains within the same category.
Income Tax
Income from crypto activities such as mining, staking, and professional trading is taxed as Category B self-employment income at progressive rates up to 48%, plus surtaxes. Occasional crypto income may fall under Category G at 28%.
VAT / GST
Exempt. Consistent with EU Court of Justice ruling (Hedqvist case), exchanging cryptocurrency for fiat currency is VAT-exempt for individuals.
Mining Tax
Miners operating as sole traders or professionals are taxed under Category B self-employment rules. Revenue is subject to progressive income tax rates up to 48% plus applicable surtaxes. Social security contributions may also apply.
Key Takeaways
- Portugal has a favorable approach to cryptocurrency taxation.
- Capital gains on Bitcoin: Gains from crypto held less than 365 days are taxed at a flat 28% rate. Gains from crypto held 365 days or more are exempt from capital gains tax. Losses can offset gains within the same category..
- Income tax treatment for crypto: Income from crypto activities such as mining, staking, and professional trading is taxed as Category B self-employment income at progressive rates up to 48%, plus surtaxes. Occasional crypto income may fall under Category G at 28%..
- Portugal is considered one of the more crypto-friendly jurisdictions for tax purposes.
Tax Summary
Portugal overhauled its crypto tax rules effective January 2023 under the State Budget Law 2023. Individual holders pay 28% capital gains tax on crypto disposed within 365 days of acquisition, while gains on assets held longer than one year remain tax-free. Crypto income from mining and staking is treated as self-employment or professional income and taxed at progressive rates.
Frequently Asked Questions
Explore More
Bitcoin tax in other countries
Data Sources
Community-sourced data. If you spot an error, please let us know.
Disclaimer
This information is for general reference only and should not be considered tax advice. Tax laws change frequently and may vary based on individual circumstances, residency status, and transaction type. Always consult a qualified tax professional in your jurisdiction before making financial decisions based on this information.