Crypto Tax Portugal 2026: Everything You Need to Know

Since 1 January 2023, cryptocurrencies are subject to taxation in Portugal under three distinct categories depending on the nature of income: Category G (capital gains from disposals), Category E (capital income such as staking and lending), and Category B (habitual business activity).

The applicable rate for Categories G and E is 28% (autonomous taxation). For Category B, progressive IRS rates up to 48% apply, plus social security contributions.

Important: disposals of crypto-assets held for less than 365 days are subject to 28% Category G taxation — but after 365 days of holding, capital gains are fully exempt from IRS (see next section). This is one of the most favourable features of the Portuguese regime.

Example: you sell €10,000 of BTC with an acquisition cost of €4,000. Capital gain = €6,000. If held less than 365 days: tax = €6,000 × 28% = €1,680. If held more than 365 days: exempt from IRS.

Portugal's standout feature is the IRS exemption on capital gains from crypto-assets held for more than 365 days (Article 10º, n.º 19 of the CIRS). This exemption makes Portugal one of the most favourable European countries for long-term crypto investors, alongside Germany (12-month rule).

The 365-day count runs from the acquisition date to the disposal date of each lot. If you apply the FIFO method, the first lot purchased is the first considered sold — so your acquisition calendar directly determines your eligibility for the exemption.

Limits to the exemption: it does not apply to Category B income (habitual professional activity), nor to income from non-cooperating jurisdictions ("tax havens"). It also does not apply to staking rewards or lending interest (which fall under Category E regardless of holding period).

Asset-referenced stablecoins (ARTs) may follow a different tax regime, treated as securities rather than crypto-assets.

Category G (capital gains) — Applies to gains from disposing of crypto-assets for fiat or goods/services, when held less than 365 days. 28% autonomous tax. Losses can be offset against gains in the same category in the same tax year.

Category E (capital income) — Applies to passive income: staking rewards, DeFi lending interest, yield farming. 28% autonomous tax at receipt, valued at the euro market price at that moment. The 365-day rule does NOT apply.

Category B (business income) — Applies when crypto activity is habitual and organised (frequent trading, professional mining, paid services in crypto). Progressive taxation up to 48%, plus TSU social security contributions. The 365-day exemption does not apply here.

Qualification as Category B depends on criteria like frequency of operations, amounts involved, organisation (algorithms, teams, etc.). The Tax Authority assesses case by case. When in doubt, consult a certified accountant.

Portugal generally applies the FIFO method (First In, First Out) to determine acquisition cost: the first units bought are the first considered sold. This is particularly important to determine whether holding exceeds 365 days (and therefore benefits from the exemption).

Example: you buy 1 BTC at €20,000 in January 2024 and 1 BTC at €35,000 in October 2024. In February 2026 you sell 1 BTC at €40,000. By FIFO, the first lot — held over 365 days — is considered sold, so the €20,000 gain is IRS-exempt.

If instead you sold in September 2024 (less than 365 days after the first lot), the gain would be taxed at 28% under Category G.

Crypto-to-crypto swaps: unlike Spain or Germany, in Portugal swapping one crypto for another is NOT a taxable event (the cost basis of the original crypto transfers to the new one). Taxation only triggers on conversion to fiat or payment for goods/services.

Staking rewards and DeFi lending interest — Category E, taxed at 28% upon receipt, valued at the euro market price on the receipt date. The 365-day rule does not apply.

Mining — If occasional, may fall under Category G or E. If habitual and organised, it is Category B (business activity) with progressive taxation and TSU obligations.

Airdrops — If received without consideration, they are generally classified as Category G upon subsequent sale (with an acquisition value of €0). Some cases may qualify as Category E income at receipt.

DAC8 — From 2026, exchanges and custodial wallets are required to automatically report their European clients' data to the Tax Authority. Incomplete declarations become easily detectable.

Declaration: Category G capital gains are declared in Anexo G of Modelo 3 (field 18-A for crypto-assets). Category E income (staking, lending) is declared in Anexo E. For Category B, use Anexo B (simplified regime) or Anexo C (organised accounting).

Mistake 1: declaring crypto-to-crypto swaps as taxable disposals. In Portugal, crypto-to-crypto swaps are NOT taxable (cost basis transfers). Only fiat conversion or payment is a taxable event.

Mistake 2: assuming the 365-day exemption applies to staking rewards. It does not — staking rewards fall under Category E regardless of subsequent holding period.

Mistake 3: not declaring exempt gains. Even when exempt, they may need to be reported in Anexo G for informational purposes. Check the Modelo 3 instructions for the relevant tax year.

Mistake 4: confusing Category G and B. If your volume and frequency suggest habitual activity, the Tax Authority may reclassify as Category B — with progressive rates up to 48% and TSU. For intensive trading, consult an accountant.