For years, Portugal has held the allure of limited taxation on
crypto, attracting digital asset enthusiasts with its sunshine and
seemingly lax regulations. However, that era has largely
transitioned into a period of measured taxation, with new rules
implemented in 2023.
Taxable Territory:
Portuguese tax residents pay tax on world-wide income, which
includes world-wide crypto related income. Crypto taxation for
individuals typically falls within one of the following three
categories:
- For holdings exceeding 365 days, gains are tax-free. Holdings
for a shorter duration incur a flat 28% capital gains tax.
- Income derived from passive crypto investments, such as capital
or regular income from staking, airdrops or lending, is taxed at a
flat rate of 28%. This includes investment income received in fiat
currencies, from passive crypto investments, not based on crypto
transfers.
