Crypto Tax Policy Review in Portugal: Future Changes and What You Need to Know

Portugal used to be the go-to place for crypto investors who wanted to avoid taxes. Buy Bitcoin, hold it for a year, sell it, and pay nothing. That was the rule - and it worked. But that changed in 2023. The government didn’t shut the door on crypto. It just rewired the system. Now, if you’re holding crypto for more than 365 days, you still pay zero tax on gains. But if you trade more often, or make money from mining or staking, you’re no longer invisible to the taxman.

How Portugal’s Crypto Taxes Work Now

Portugal’s current system splits crypto activity into three buckets, each with its own tax rule. This isn’t guesswork anymore. You need to know which category your activity falls into.

• Category G (Capital Gains): This is what most individual investors care about. If you buy Bitcoin and sell it after 365 days, you pay 0% tax. That’s still the golden rule. But if you sell before a year? You pay 28%. It doesn’t matter if you made €500 or €500,000 - the rate is flat. The tax authority uses FIFO (First In, First Out) to track when you bought your coins. So if you bought BTC in January 2024 and sold it in October 2024, you’re taxed. If you held it until February 2025? Tax-free.
• Category E (Passive Income): Staking, lending, or earning interest on crypto? That’s passive income. You pay 28% flat tax - but only when you turn those rewards into euros. If you get 0.5 ETH as a staking reward and keep it in your wallet? No tax yet. Wait until you sell it to euros, and then the clock starts. You can choose to bundle this income with your other earnings and pay progressive rates instead, but 28% is simpler for most.
• Category B (Professional Activities): If you’re trading full-time, mining, or running a crypto business, you’re in this bucket. The rules here are tricky. For mining, you’re taxed on 95% of your gross income because of energy use. For everything else - like active trading or running a validator node - you’re taxed on just 15% of your gross income. Then that 15% gets slapped with Portugal’s progressive income tax rates, which go from 14.5% up to 53%. So if you made €100,000 from trading, only €15,000 is taxable income. But if you’re in the top bracket, you’ll pay over half of that in taxes.

Why Portugal Still Beats Other EU Countries

A lot of people think Portugal lost its edge. But compared to other EU countries, it’s still one of the best places to hold crypto long-term.

Comparing Crypto Tax Rates in Europe (2025)

Country	Short-Term Gains (Under 1 Year)	Long-Term Gains (Over 1 Year)	Staking/Lending Tax
Portugal	28%	0%	28% (on fiat conversion)
Germany	Up to 45%	0%	Income tax (up to 45%)
France	30%	30%	30%
United Kingdom	10-20%	10-20%	20-45%

France taxes everything at 30% - no exceptions. The UK taxes long-term gains too, with only a £3,000 allowance. Germany has the same 1-year exemption as Portugal, but staking is taxed as income, which can hit 45%. Portugal’s 28% short-term rate is lower than France’s 30%, and its long-term exemption is cleaner than the UK’s ongoing tax burden.

What’s Changing in the Near Future?

There’s no official announcement of big changes for 2026. But that doesn’t mean nothing’s coming.

• Enforcement is getting tighter. The Portuguese tax authority doesn’t have full crypto tracking yet - but they’re building it. They’re working with blockchain analytics firms and starting to cross-check exchange data with bank records. If you didn’t report staking rewards from Binance or Kraken in 2024, you might get a letter in 2026.
• Professional activity rules could get sharper. Right now, the line between “hobby trader” and “professional” is blurry. The tax office is watching how many trades people make per month. If you’re doing 50+ trades a year, they might reclassify you as Category B - even if you don’t call yourself a professional. Expect clearer thresholds soon.
• EU’s MiCAR is coming. The Markets in Cryptoassets Regulation will force all EU countries to adopt common rules for exchanges and wallet providers. Portugal won’t lose its tax rules, but it will have to align with EU reporting standards. That means more data sharing between countries. Your Coinbase account might start sending info directly to the Portuguese tax office.
• Miners might pay more. The 95% tax rate on mining income was a warning shot. If energy use spikes again, the government could raise that to 100% - meaning you pay tax on all your mining income, no deductions.

What You Should Do Right Now

If you’re holding crypto in Portugal, here’s what matters:

1. Track your purchase dates. Use a tool like CoinTracking, Koinly, or even a simple spreadsheet. Know exactly when you bought each coin. FIFO isn’t optional - it’s the law.
2. Don’t assume staking rewards are free. They’re not taxed when you get them, but they are when you sell. Keep a log of every reward, its value in euros at the time you received it, and when you converted it.
3. Know your trade volume. If you’re doing more than 10-15 trades a month, you’re flirting with Category B. Even if you don’t think you’re a professional, the tax office might.
4. Hold for a year. This is still the biggest tax hack in Portugal. If you’re not actively trading, just buy and hold. The 365-day rule is your best friend.
5. Don’t ignore past years. If you sold crypto in 2023 or 2024 without reporting, you can still file a voluntary disclosure. Penalties are lower if you come forward before they find you.

Who’s at Risk?

Not everyone. Most people in Portugal who hold crypto as an investment are fine. The real targets are:

• Active traders who sell every few weeks
• Miners running high-power rigs without declaring income
• People who earn staking rewards but never report them
• Expats who moved to Portugal claiming tax exemption but traded frequently

There’s a myth that Portugal’s tax office doesn’t care. That’s outdated. In 2024, the tax authority started sending out 1,200 letters to crypto holders asking for transaction records. Most were from exchanges with EU licenses. They’re not fishing anymore. They’re netting.

What’s Next for Crypto in Portugal?

Portugal isn’t turning into a tax trap. It’s becoming a smarter one. The government still wants digital nomads, investors, and startups to come. But now, they want them to play by clear rules.

The 365-day exemption stays. The 28% short-term rate stays. The staking deferral stays. That’s the core. What’s changing is enforcement. The tools are getting better. The data is getting connected. The risk of being caught for underreporting is rising.

If you’re thinking of moving to Portugal to avoid crypto taxes, you still can - but only if you’re a long-term holder. If you’re planning to trade aggressively, you’ll pay. And that’s fair. The system isn’t broken. It’s just grown up.