The end of the tax-free era and how to stay compliant
Introdução
For years, Portugal was a “wild west” for crypto investors. That era is over.
Since January 2023, the Portuguese Tax Authority (AT) has enforced a strict tax regime. The rules are no longer ambiguous. If you sell crypto for fiat currency, trade frequently, or earn staking rewards, you have a tax obligation.
The risk isn’t just paying tax. It is the penalties for non-compliance. With new EU-wide data sharing (DAC8) and direct reporting from exchanges, the AT knows about your holdings before you file.
This guide explains exactly how the 365-day rule works, which forms you must file, and how to avoid the traps that trigger audits.
The 365-day rule: Your exemption mechanic
The core of the Portuguese system is the distinction between short-term speculation and long-term holding.
If you hold a crypto asset for 365 days or more, the capital gain on its sale is tax-exempt (0% tax). If you hold it for less than 365 days, the gain is taxed at a flat 28%.
This exemption has strict conditions. It is not a loophole; it is a specific rule with three major caveats.
1. The clock resets on swaps
This is the most common mistake. Swapping one cryptocurrency for another (e.g., Bitcoin for Ethereum) is treated as a disposal and a new acquisition.
- Tax impact: The swap itself is not taxed immediately. Taxation is deferred until you sell for fiat.
- Time impact: The 365-day clock resets to zero for the new asset. You lose your accrued holding time.
2. FIFO is mandatory
You must calculate gains using the First-In, First-Out (FIFO) method. When you sell, the law assumes you are selling the oldest coins in your portfolio first. You cannot choose to sell your newest coins to preserve the long-term status of older ones.
3. The anti-abuse list
The exemption does not apply if:
- The counterparty is in a blacklisted tax haven.
- The asset is legally classified as a security (security token).
- You are not a tax resident of an EU/EEA country or a nation with a tax treaty with Portugal.
Action: Review your transaction history. Identify which assets have actually crossed the 365-day threshold without being swapped.
The three tax buckets
Portugal categorizes crypto income into three types. Misclassifying one as the other is a primary trigger for fines.
Category G: Capital gains (Mais-valias)
This applies to individual investors selling for fiat.
- Avaliar: 28% on gains < 365 days. 0% on gains ≥ 365 days.
- Reporting: Anexo G (domestic platforms) or Anexo J (foreign platforms).
- Isenções: NFTs are currently excluded from this category for individuals.
Category B: Professional income (Rendimentos empresariais)
This applies if trading is your main business, or if you mine crypto.
- Avaliar: Progressive IRS rates (14.5% to 53%) plus Social Security.
- Simplified regime: If you earn under €200,000, you are taxed on a fixed percentage of income (15% for trading, 95% for mining).
- Trigger: High frequency of trades, profit intent, and dependence on this income for livelihood.
Category E: Investment income (Rendimentos de capitais)
This applies to passive income like staking rewards, lending interest, or DeFi yields.
- Avaliar: Flat 28%.
- Timing: Tax is due when you receive the reward, based on its fiat value at that moment.
- Observação: Unlike capital gains, there is no 365-day exemption for Category E income.
Action: If you mine or trade daily, register as a freelancer (trabalhador independente) to avoid being audited for undeclared business activity.
Mandatory reporting: The paperwork
Since 2024, reporting is mandatory for everyone holding crypto, even if you owe zero tax. Silence is no longer an option.
You must file the annual Modelo 3 tax return between April 1 and June 30.
Anexo J: The foreign exchange trap
Most crypto investors use foreign exchanges like Binance, Kraken, or Coinbase. These entities do not have a NIF português (tax number).
- Rule: You must report these accounts and transactions in Anexo J (Foreign Income).
- Common error: Filing in Anexo G (Domestic) instead of Anexo J. This is a formal error that can lead to fines.
Anexo G1: The exempt gains list
If you sold crypto held for more than 365 days, you do not pay tax, but you must still declare the sale.
- Where: Anexo G1 (Un-taxed Capital Gains).
- Why: This proves the origin of your funds. If you buy a house later with crypto profits you never declared, the tax authority will treat that money as “unjustified wealth” (manifestações de fortuna) and tax it at 60%.
Action: Download your transaction history from all exchanges now. Do not wait until April.
Enforcement and penalties
The Portuguese Tax Authority is not working alone. It uses automated data sharing to find discrepancies.
- DAC8 & CRS: EU directives force exchanges to share user data with tax authorities. If you have a KYC-verified account on a European exchange, Finanças knows about it.
- Modelo 59: Portuguese-based crypto service providers must report all client transactions directly to the state by January 31.
- Fines: Penalties for non-reporting range from €150 to €3,750. If the omitted tax exceeds €15,000, it becomes a criminal offense (tax fraud).
Risks and traps (and how to fix them)
| Risco | The Fix |
|---|---|
| Spending crypto directly | Treat every purchase as a taxable sale. Calculate the gain based on the crypto’s cost basis. |
| Crypto-to-crypto swaps | Record the date of every swap. Reset your 365-day count for the new asset immediately. |
| Airdrops & Stamp Duty | Airdrops over €500 trigger a 10% Stamp Duty (Imposto do Selo). File this separately from your annual IRS. |
| Exit Tax | If you leave Portugal, you may owe tax on unrealized gains (“deemed disposal”). Close positions or consult a lawyer before changing residency. |
| Lost residency status | Ensure you remain a tax resident of an EU/treaty country to keep the 365-day exemption valid. |
Conclusão
The “crypto haven” narrative is dead. Portugal now has a mature, high-compliance tax system. The 365-day rule is your best tool for tax efficiency, but it requires perfect records. If you cannot prove when you bought an asset, the tax authority will assume it is short-term and tax it at 28%.
Get your transaction history organized today. If you have complex income streams like staking or mining, do not guess on your tax return.
Perguntas frequentes
Is crypto tax-free in Portugal in 2025?
Only if you hold the asset for more than 365 days before selling. Short-term gains (held less than one year) are taxed at 28%. Professional trading and staking rewards are also taxed.
Do I have to declare crypto if I didn’t sell?
Generally, no. Holding crypto is not a taxable event. However, you must declare all sales, even if the gain is tax-exempt.
How are staking rewards taxed?
Staking rewards are considered Category E (Investment Income) and are taxed at a flat rate of 28%. They do not qualify for the 365-day exemption.
What is the FIFO rule?
FIFO stands for First-In, First-Out. When calculating gains, you must assume you sold the oldest coins in your wallet first. This usually helps you meet the 365-day threshold for tax exemption.
Do I pay tax on crypto-to-crypto trades?
No tax is due at the moment of the swap. However, the swap resets the holding period for the new asset. You will pay tax when you eventually sell that new asset for fiat, based on the new timeline.
What happens if I use Binance or Coinbase?
You must report income and gains from these platforms in Anexo J (Foreign Income) of your tax return, as they are non-Portuguese entities.
Are NFTs taxed in Portugal?
Currently, individual gains from the sale of NFTs are excluded from the capital gains tax regime. However, if NFT trading is your professional business, it falls under Category B.
