In Portugal, a progressive and forward-thinking approach to cryptocurrency taxation is in place, designed to promote sustainable investment practices and foster technological advancement.

Effective from January 2023, capital gains resulting from the sale of cryptocurrencies held for a duration of 365 days or more are exempt from taxation. This means that investments made in cryptocurrencies held for the long term are not subject to any capital gains tax. However, capital gains arising from the disposal of cryptocurrencies held for less than 365 days are subject to a tax rate of 28%.

It’s important to note that this tax exemption extends to Non-Fungible Tokens (NFTs) as well, recognizing their unique nature within the crypto landscape.

Furthermore, the transfer of cryptocurrencies between wallets, addresses, or personal accounts is considered a non-taxable event, meaning such transactions are exempt from taxation.

It’s noteworthy that Portugal has implemented an “exit tax” mechanism within its IRS Code. This mechanism pertains to taxpayers changing their tax residency to another jurisdiction. The loss of resident status within Portugal and the cessation of related activities are treated equivalently to a taxable disposal of cryptocurrencies.

Tax Department

Sofia Quental | Flávia Almeida | Catarina Amaral