Crypto Tax in Portugal: The 365-Day Rule and the 28% Flat Rate

General information, not tax advice. Portuguese tax rules changed significantly in 2023 and continue to evolve; personal circumstances vary. Check portaldasfinancas.gov.pt or speak to a Portuguese tax adviser before you file.

Portugal spent years as the poster child for tax-free crypto, and its reputation still draws holders. That reputation is now out of date: since 1 January 2023 Portugal does tax crypto. But it kept a genuinely attractive feature — a one-year exemption — so the country remains favourable for long-term holders, just not the blanket haven it once was.

The 365-day rule

The centrepiece is holding period. Gains on crypto held for 365 days or more are exempt from capital gains tax. Sell a coin you have held for less than a year and the gain is taxed; cross the one-year line and it is generally tax-free. This is the same philosophy as Germany's one-year rule, and it makes the acquisition date the most important thing you track.

The exemption applies to crypto that counts as a plain cryptoasset. Tokens that qualify as securities can be treated differently, and the exemption's scope has nuances — check your specific assets rather than assuming everything qualifies.

The 28% flat rate on short-term gains

Gains on crypto held for less than 365 days fall under Category G (capital gains) and are taxed at a flat 28%. You can instead elect to include the gains in your general progressive income (englobamento), which only helps lower-income taxpayers; most people take the flat 28%. There is no separate small-gain allowance for crypto, so short-term profits are taxed from the first euro of gain.

Crypto-to-crypto swaps are not taxed

Like France, Portugal does not tax crypto-to-crypto trades. Swapping BTC for ETH is not a disposal, and — importantly — the holding period carries over cumulatively across the swap. Tax is triggered only when you convert to fiat or spend the crypto. This lets you rebalance without resetting your one-year clock, a meaningful advantage for active portfolio management.

Professional traders: Category B

If your activity amounts to a professional or business trading operation rather than personal investing, it is taxed under Category B (self-employment) on the progressive income scale, which runs from 14.5% up to 53% including the top-rate solidarity surcharges. The distinction turns on how habitual, organised and business-like your trading is. Most individuals remain private investors under Category G, but high-frequency operators can be reclassified, with very different consequences.

Staking, mining and rewards

Passive crypto income — staking rewards, lending yield and similar — is generally treated as investment income (Category E) and can be taxed at 28%, while mining and validation activity carried on as a business fall under Category B. As in most countries, rewards are effectively taxed as income when received, and any later change in value on disposal is then assessed under the capital gains rules. The exact category depends on the nature of the activity.

Reporting and deadlines

• •The tax year is the calendar year. Crypto gains and income are reported in the annual IRPF return (Modelo 3), typically filed between April and June of the following year.
• •Keep records of acquisition dates and values, disposal dates and proceeds, and the euro value of any rewards when received — the 365-day rule makes precise dates essential.
• •From 2026 the EU-wide DAC8 framework requires crypto service providers to report user and transaction data to tax authorities automatically.

The bottom line

Portugal is still one of Europe's friendlier crypto jurisdictions, but the 'tax-free' label no longer holds without qualification. The winning play is the long hold: cross 365 days and your gain is exempt, and because swaps do not reset the clock, you can rebalance along the way. Sell early and you owe a flat 28%. Track your dates, and the rest follows.