Portugal’s Tax and Customs Authority (Autoridade Tributária e Aduaneira – AT) published updated guidance on 6 May 2025, outlining the fiscal treatment of cryptoassets under Portuguese tax law. These clarifications follow the amendments introduced in the 2023 State Budget Law and apply to income earned in 2024 (IRS returns filed in 2025).
The official note consolidates the rules for personal income tax (IRS), clarifying when gains are exempt, how to handle crypto-to-crypto transactions, and how various types of income (e.g., staking, mining, airdrops) are classified for tax purposes.
General Overview – Cryptoassets and IRS
Taxation of cryptoasset income depends on:
- The nature of the transaction (personal vs business),
- The holding period of the assets,
- The classification of the income under the IRS Code (CIRS).
1. Capital Gains – Category G (Article 10 of the CIRS)
- Capital gains from the sale of cryptoassets held for less than 365 days are taxable under Category G.
- Gains on assets held for more than 365 days are exempt from IRS, provided:
- The taxpayer is a private investor (not acting as a professional);
- The transaction does not involve blacklisted jurisdictions.
Exemption does not apply if:
- The holding period is under 365 days;
- The taxpayer operates as a professional (Category B);
- The transaction is conducted with entities in tax havens.
Crypto-to-Crypto Exchanges
- Swapping one cryptoasset for another (e.g. Bitcoin for Ethereum) is treated as a taxable disposal of the asset given and a new acquisition of the asset received.
- The acquisition date of the new asset is the date of the exchange.
- This resets the 365-day exemption period.
2. Professional or Business Activity – Category B
If trading or crypto-related activity is frequent, organised, and profit-driven, it may be classified as business income (Category B).
This includes:
- Active trading,
- Mining,
- Regular staking or lending,
- Accepting crypto as payment for services.
Tax Regimes:
- Simplified regime: 15% of gross income is considered taxable;
- Organised accounting: required above certain income thresholds or by choice.
3. Other Crypto-Related Income
Income from staking, lending, airdrops, or rewards may be taxed differently depending on the activity and frequency:
| Type of income | IRS Category | Tax treatment |
|---|---|---|
| Occasional staking/lending | Category E (investment income) | 28% final withholding tax |
| Regular staking/lending | Category B (business income) | Progressive taxation |
| Capital Gains (>365 days) | Category G1 | Tax Free |
| Capital gains (< 365 days) | Category G | Progressive taxation |
Flat Tax (Final Withholding) Rates
| Income type | Category | Tax rate |
|---|---|---|
| Interest, lending, staking (passive) | E | 28% |
| Business income | B | No flat rate – progressive |
| Capital gains | G | Progressive taxation or flat 28% |
IRS Filing Obligations – Modelo 3
| Income type | Applicable IRS Annex |
|---|---|
| Capital gains (< 365 days) Capital gains (> 365 days) | Annex G Annex G1 |
| Business activity (trading, mining) | Annex B or C |
| Foreign-sourced income | Annex J |
| Investment income (staking/lending) | Annex E |
All crypto income must be converted to euros using the exchange rate on the transaction date. Documentation should be retained, including wallet addresses, transaction records, and exchange reports.
📌 Summary: When Capital Gains Are Exempt
| Situation | Exempt from IRS? |
|---|---|
| Held > 365 days | ✅ Yes |
| Held < 365 days | ❌ No |
| Business activity | ❌ No |
| Transaction involves tax haven | ❌ No |
| Acquired through crypto swap | 🔁 New 365-day period starts from swap date |
Final Notes
This updated guidance from AT (Finanças) offers much-needed clarity for taxpayers dealing with cryptoassets. However, the rules are nuanced and depend on the nature of the activity and type of income.
For accurate reporting and to ensure full compliance with IRS rules, we strongly recommend working with a certified accountant or tax adviser experienced in digital asset taxation.
Need help with your crypto tax obligations in Portugal? Our team can assist with IRS filings, capital gains reporting, and business activity setup. Contact us today for professional support tailored to your situation.