Crypto Income: Tax Treatment in Portugal in 2026
Portugal introduced a specific tax framework for cryptoassets as of 1 January 2023. Since then, income derived from cryptoassets has been subject to taxation under clearly defined rules, applicable to both individuals and companies.
For private clients, especially internationally mobile individuals, entrepreneurs and investors, crypto taxation in Portugal raises recurring questions around reporting obligations, exemptions, holding periods and interaction with special tax regimes.
This insight provides a practical overview of how crypto income is taxed in Portugal in 2026 and what taxpayers should be aware of.
What are crypto-assets?
Crypto-assets are digital representations of value or rights that can be transferred and stored electronically using distributed ledger technology, such as blockchain. Although they may be used as a means of payment, their most common use remains investment and speculation.
Crypto-assets include, in particular:
Cryptocurrencies, such as Bitcoin and Ether;
Stablecoins, whose value is linked to a reference asset or fiat currency;
Other crypto-tokens, depending on their economic function.
Under Portuguese tax law, NFTs (non-fungible tokens) are expressly excluded from the crypto-asset tax regime and are not subject to the specific rules described below.
How are crypto-assets taxed for individuals?
For individuals, crypto-related income is taxed under Personal Income Tax (IRS). The applicable tax treatment depends on the nature of the activity and the type of income generated.
Business and professional income (Category B)
Income derived from activities such as crypto-asset mining or issuance is generally treated as business income. Taxation may occur under the simplified regime or organised accounting, and income is subject to progressive IRS rates.
Investment income (Category E)
Passive income arising from crypto-assets, such as certain staking or yield-generating arrangements, may qualify as investment income. As a general rule, taxation is triggered when income is effectively received in fiat currency or otherwise made available. Investment income is typically taxed at a flat rate of 28%, with the option to aggregate, or at 35% where income is connected to a blacklisted jurisdiction or tax-haven.
Capital gains (Category G)
Capital gains realised on the disposal of crypto-assets are taxable as a rule. The gain corresponds to the difference between the disposal value and the acquisition cost, determined under the FIFO method (first in, first out).
Where crypto-assets are held for more than 365 days, capital gains are generally exempt from IRS. Short-term disposals remain taxable, usually at a flat rate of 28% (or 35% where income is connected to a blacklisted jurisdiction).
It is important to stress that the loss of Portuguese tax residence may be treated as a deemed disposal for tax purposes.
Important note: Crypto-assets received as consideration for other income (for example, salary or professional fees paid in crypto) are treated as income in kind and taxed according to the rules applicable to the underlying category.
How are crypto-assets taxed for companies?
Where crypto-assets are held or transacted by companies, income and expenses related to crypto-assets fall within the scope of Corporate Income Tax (IRC).
All crypto-related transactions must be properly recorded in the company’s accounting records and reflected in the determination of taxable profit, which is subject to IRC under the general rules.
Are donations or inheritances of crypto-assets taxable?
Yes. The free transfer of crypto-assets, whether by donation or inheritance, may be subject to Stamp Duty at a rate of 10%.
Transfers between close family members (such as parents and children) may benefit from an exemption, but reporting obligations generally remain, and the transaction should be disclosed to the Portuguese Tax Authority.
Reporting obligations and international tax transparency
Crypto-assets are now fully integrated into the global tax transparency framework.
At international level, the OECD has developed the Crypto-Asset Reporting Framework (CARF), a dedicated standard for the automatic exchange of information on crypto-asset transactions. Under CARF, crypto-asset service providers are required to identify users, collect transaction data and report that information to tax authorities, which then exchange it automatically with the jurisdictions where the relevant taxpayers are resident.
Within the European Union, these standards are implemented through DAC 8, which incorporates crypto-asset reporting into the existing system of administrative cooperation between EU tax authorities. Once operational, information reported by crypto-asset service providers will be automatically shared among Member States, without minimum transaction thresholds and independently of taxpayers’ voluntary disclosures.
For Portuguese taxpayers, the practical implications are clear:
Crypto-asset holdings and transactions are no longer outside the scope of international information exchange.
Information may be reported by Portuguese or foreign platforms and transmitted to the Portuguese Tax Authority through EU and OECD cooperation channels.
Tax authorities increasingly rely on third-party data to cross-check tax returns.
From a compliance and risk-management perspective, crypto-assets should therefore be treated in the same manner as other financial assets, with appropriate reporting, documentation and alignment with Portuguese tax rules.
Why this matters
While Portugal offers a structured and, in certain cases, favourable tax treatment for crypto-assets, the interaction between tax categories, holding periods, reporting obligations and international information exchange mechanisms requires careful analysis.
Crypto-related tax exposure often arises not from aggressive positions, but from incomplete reporting, misunderstandings of applicable exemptions or a lack of coordination between platforms, jurisdictions and tax regimes.
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This insight is provided for general information purposes only and does not constitute legal or tax advice. It is not intended to be an exhaustive statement of the law and shuold not be relied upon as a substitute for advice tailored to individual circumstances.
Enquiries may be directed to info@flegal.pt or via the Contacts section here.