How to File Crypto Tax in Portugal

How to File Crypto Tax in Portugal

Portugal’s crypto tax rules have evolved significantly. Cryptocurrencies are now clearly defined under Portuguese tax law, and many types of crypto gains are taxable especially short-term disposals and income-like activity. This guide explains how crypto is taxed for 2026, what you must report, how to calculate gains and losses, and how to file your crypto taxes correctly.

Why Crypto Is Taxable in Portugal

Under the updated 2026 tax regime, crypto assets are legally defined as digital representations of value or rights recorded on distributed ledgers. This enables the Portuguese tax authority (Autoridade Tributária e Aduaneira)to tax gains from crypto asset disposals and other crypto-related income.

There are three main tax categories under Portugal’s Personal Income Tax (PIT) code that affect crypto:

1. PIT Category E (Capital Income) - passive crypto gains taxed at a flat 28%
2. PIT Category G (Capital Gains Income) - trading gains subject to 28% tax if held less than 365 days; exempt if held more than 365 days‍
3. PIT Category B (Business/Self-Employment Income) - income from professional mining, staking, validating, or business-like crypto activity taxed at progressive rates

These categories determine how your crypto profits are taxed and what tax rate applies.

WhenCrypto Is Taxable

Capital Gains(Short-Term Sales)

If you sellcrypto for fiat or dispose of it within less than 365 days ofacquisition, any gains are taxable.

Capital Gain= Sale Proceeds - Cost Basis

Portugalgenerally applies a flat 28% tax rate on net crypto gains held less thana year.

Long-Term Gains (365-DayRule)

If you holdcrypto for more than 365 days before selling, gains are tax-exemptin most cases — although you must still report them on your tax return.

Thislong-term tax exemption makes Portugal attractive for buy-and-hold investors.

Crypto-to-Crypto Trades

Exchangingone cryptocurrency for another (crypto-to-crypto) is generally not a taxableevent , you only pay tax when you eventually convert to fiat or dispose ofthe asset.

Received Crypto(Airdrops, Forks, Rewards)

• Airdrops: Treated as taxable income at fair market value when received and taxed at 28%
• Forks: New tokens received from a fork are treated as income and taxable at the time received
• Staking/Mining Rewards: Considered income and generally taxed under Category B at progressive rates unless part of passive investment activity

Gifting and Donations

• Gifts between family members can attract gift tax depending on value and relationship
• Free transfers (including inheritance) can be subject to stamp duty at 10% if conditions apply
• Donations to registered nonprofits can qualify for tax deductions on your income tax return

Portrait of Tax Rates (2026)

Capital Gains / Passive Income

• Up to 365 days holding: 28% flat tax on net gains
• >365 days holding: Gains generally tax-exempt, but must be reported

Business / Professional Crypto Income

• Income from mining, staking (as a business), or other professional crypto activities taxed at progressive PIT rates ranging approximately 14% to 48%
• Non-residents pay a flat 25%on Portuguese-sourced income

How to Calculate Cost Basis

Portugal generally recommends FIFO (First-In, First-Out) for crypto transactions.

Example:

• Bought 1 BTC for €5,000
• Bought another 2 BTC for €7,000 each
• Sell 1 BTC for€12,000 → cost basis = €5,000
• Gain = €7,000

Step-by-Step - How to File Crypto Tax in Portugal

Step 1 - Gather All Crypto Records

Collect your wallet and exchange transaction history, including dates, values, and types of crypto.

Step 2 - Identify Taxable Events

Separate transactions that trigger tax (sales for fiat, income-generating activity) from non-taxable swaps.

Step 3 - Calculate Gains and Income

Use FIFO to determine cost basis and gains, or classify income from mining/staking/business activity.

Step 4 - Complete Your Annual Tax Return

Report capital gains, losses, and crypto income on your IRS tax declaration via the Portuguese tax portal (eFatura / Portal das Finanças).

Step 5 - Submit by Deadline

Portugal’s tax deadline is usually June 30, but confirm current year deadlines with the Tax Authority.

Common Mistakes to Avoid

• Forgetting to report short-termgains under 365 days
• Misclassifying crypto-to-cryptotrades as taxable
• Ignoring tax on received airdrops orforked tokens
• Failing to track cost basisaccurately

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Can Kryptos Help With Portugal Crypto Tax?

Yes. Kryptos automatically imports transactions across wallets and exchanges, calculates gains/losses using FIFO, and prepares compliant tax summaries ready for your IRS tax filing in Portugal.

Conclusion

Portugal’s crypto tax regime for 2026 taxesshort-term crypto profits and income-generating activity, while long-termholdings over 365 days are generally exempt from capital gains tax. Correctlyclassifying events, calculating cost basis, and reporting them ensurescompliance and optimizes your tax outcome.