Portugal Crypto Tax 2025 — IRS Treatment & Capital Gains

The rule that surprises people: holding period decides everything

Since the framework introduced by Lei n.º 24-D/2022, effective 1 January 2023, an individual who is not carrying on crypto as a business or profession is taxed under Categoria G (capital gains), and the rate depends entirely on how long you held the asset before disposing of it:

• Held for less than 365 days: the net gain is taxed at a flat 28%.
• Held for 365 days or more: the gain is exempt — 0%.

There is no partial taper between the two — a disposal one day short of a year is fully taxable at 28%; a disposal on day 365 is fully exempt. The clock runs from the date of acquisition of the specific units disposed of, which matters if you bought the same token at different times, since different lots can sit on either side of the line at the same moment.

What counts as a taxable disposal

A taxable event arises when you convert crypto to fiat currency, or use crypto to acquire goods or services. Crypto-to-crypto swaps are treated differently from many other countries' tax regimes — the Portuguese framework's disposal trigger centres on conversion to fiat or to goods/services rather than taxing every token-for-token exchange the way, for example, UK CGT does; get professional confirmation for your specific swap pattern before assuming either treatment, since the practical application to complex swap chains is still an area accountants flag as requiring case-by-case advice.

Mining, staking and professional activity — a different regime entirely

If crypto activity amounts to a professional or business activity — mining as a trade, or frequent trading that Autoridade Tributária e Aduaneira (AT) would treat as a business rather than passive investment — it falls under Categoria B (business and professional income) instead, taxed under the ordinary simplified-regime coefficients rather than the Categoria G capital-gains rules described above. The 365-day exemption is specific to Categoria G disposals; it does not extend to income that is properly classified as a trade.

Reporting — required even when the tax is zero

Every crypto disposal must be reported in the annual Modelo 3 return, filed through the Portal das Finanças between 1 April and 30 June of the year following the disposal — Anexo G for short-term (taxable) gains and Anexo G1 for long-term (exempt) gains. Filing Anexo G1 for an exempt disposal is not optional paperwork; it is how the exemption is actually claimed and recorded, and an unreported exempt gain is not the same, in AT's eyes, as a correctly declared one.

Worked example

An investor buys 1 BTC on 10 March 2025 and a further 1 BTC on 1 December 2025. On 15 March 2026 they sell both coins for a combined €90,000, having paid €35,000 for the first coin and €40,000 for the second.

• The first BTC (bought 10 March 2025) has been held over 365 days by 15 March 2026 — its gain of €45,000 − €35,000 = €10,000 is exempt, reported on Anexo G1.
• The second BTC (bought 1 December 2025) has been held under 365 days — its gain of €45,000 − €40,000 = €5,000 is taxable at 28%, reported on Anexo G: €5,000 × 28% = €1,400 of IRS due.

Selling both coins on the same day, for the same total price, produces two entirely different tax outcomes purely because of when each lot was acquired.

FAQ

Q: If I hold for exactly 365 days, is my gain exempt? A: The exemption applies to disposals at 365 days or more of holding — the boundary itself counts as qualifying, not as falling one day short.

Q: Do I need to report a crypto sale if my gain is fully exempt? A: Yes. Reporting on Anexo G1 is mandatory regardless of whether tax is actually due, and is the mechanism by which the exemption is recorded against that disposal.

Q: Does the 28% rate apply if I'm a professional trader rather than an investor? A: No — professional or business-level crypto activity falls under Categoria B and the ordinary business-income rules instead, not the Categoria G capital-gains regime this 28%/0% split belongs to.

Sources

Figures verified against Portugal's crypto tax framework as of 30 July 2026:

• Lei n.º 24-D/2022 (the State Budget Law that introduced Portugal's crypto tax framework, effective 1 January 2023): 28% flat rate on gains from assets held under 365 days, exemption for 365 days or more, Categoria G classification for non-professional disposals
• Autoridade Tributária e Aduaneira — Modelo 3 IRS return, Anexo G / Anexo G1 (mandatory annual reporting window of 1 April–30 June, via the Portal das Finanças, for both taxable and exempt disposals)