Is crypto tax free in Portugal in 2026?

Portugal really was a crypto haven for individuals until the end of 2022. The 2023 State Budget ended that by writing crypto into the personal income tax code, and the rules it created still apply in 2026.

The 365 day line

Sell, or otherwise dispose of, a token you have held for fewer than 365 days and the gain is a Category G capital gain taxed at a flat 28 percent, with the option to aggregate at progressive rates instead. Hold for 365 days or more and the gain is exempt. The clock runs per acquisition, so partial sales need tracking lot by lot.

Two conditions narrow the exemption. It does not apply to tokens that qualify as securities, which are taxed as securities whatever the holding period. And it depends on the counterparty being resident in the EU, the EEA, or a country with a tax information exchange agreement with Portugal, a point most exchanges never mention.

Swaps, staking, mining

A crypto to crypto swap does not trigger tax immediately. The gain is deferred until you convert into fiat or into consideration that is not crypto, and the original acquisition cost carries over. Passive staking and lending rewards are Category E income at 28 percent. Mining and validation are Category B business income, taxed under the freelance rules with social security on top.

Losses and reporting

Short term losses offset short term gains in the same year only, and they do not carry forward. On the Modelo 3 return, short term disposals go in Anexo G and exempt long term disposals go in Anexo G1. Reporting an exempt disposal is still required, so the exemption is not a reason to leave anything out.

If you hold IFICI

IFICI exempts foreign source income, but crypto gains realised by a Portuguese resident are usually treated as domestic income of the resident, so do not assume the regime covers them. Check the treatment with an adviser before a large disposal.

More detail sits in the tax guide for expats.