Portugal: Tax Alert on Cryptocurrency Taxation
Portugal’s updated approach to cryptocurrency taxation, in effect since January 2023, brings greater clarity and regulation to crypto-related gains and activities. Here are the key highlights:
📈 Capital Gains Taxation
Crypto held for 365+ days: Exempt from capital gains tax.
Crypto held for <365 days: Taxed at 28%.
Transfers between wallets, accounts, or addresses: Not taxable.
🧾 Income from Crypto Activities
All forms of crypto-related remuneration (mining, staking, issuing crypto-assets) are classified as capital income and taxed at 28% if held for less than one year.
🖼️ NFTs are currently excluded from taxation.
🏡 IMT on Property Purchases
When real estate is purchased using cryptocurrencies, the IMT (property transfer tax) applies to the crypto’s declared value, which is added to the purchase base.
📜 Stamp Duty
Free transfers of crypto: Taxed at 10%.
Intermediation services (e.g., commissions): Taxed at 4% of the fee value.
🚪 Exit Tax
Portugal has introduced an “exit tax” in the IRS Code. If a taxpayer changes tax residency or ceases activity in Portugal, they may be taxed as if their crypto holdings were sold, treating the departure as a taxable event.
