Is crypto legal in Portugal?

Cryptocurrencies are legal in Portugal but not recognized as legal tender. They can be owned, traded, and used in transactions. Regulation focuses on anti-money laundering and tax rules. Short-term gains and income from mining or staking are taxable, while long-term holdings by individuals may be treated differently. The framework continues to evolve under EU and national law.

Crypto taxes in Portugal

Since 2023, the era of zero tax has ended. The Personal Income Tax (IRS) now covers income from crypto. Tax treatment depends on how the asset is realised or received. NFTs sit outside this IRS regime.

Main tax categories:

• Category G (capital gains). Sales of crypto held less than 365 days trigger a flat 28% tax on the profit. Sales after 365 days are generally exempt. The tax base equals the sale value minus acquisition cost. Tax computations use the FIFO method. A change of tax residence is treated as a deemed disposal. Gains from a tax haven can face a 35% rate.
• Category E (investment income). Rewards from staking or lending are taxed at 28% when converted to fiat. Income from tax-haven sources may face 35%.
• Category B (business income). Professional or frequent crypto activity, such as organised mining or trading, falls under progressive IRS rates (14.5%–53%). Tax may follow the simplified or organised accounting regime.

The exchange of crypto for fiat, or use as payment for goods or property, is generally exempt from VAT in Portugal, following EU Court of Justice rulings (C-264/14, Hedqvist).

This table summarises the main positions.

For official guidance, refer to the Portuguese Tax Authority.

The information on this page is provided for general informational purposes only. It does not constitute legal, tax, financial, or investment advice. For advice on specific situations, please consult a qualified lawyer, accountant, or tax professional licensed in the relevant jurisdiction.

Crypto regulations and compliance rules in Portugal

Regulation is managed by several national authorities, each with a defined role:

• Banco de Portugal registers virtual-asset service providers (VASPs) and ensures AML/CFT compliance. Supervision does not cover prudential conduct.
• Comissão do Mercado de Valores Mobiliários (CMVM) determina se um token qualifica como um instrumento financeiro. It applies securities law on a case-by-case basis.
• Autoridade Tributaria e Aduaneira (AT) enforces IRS rules for crypto income and gains and sets reporting and filing obligations for residents.
• Financial Intelligence Unit (UIF) receives and analyses suspicious transaction reports. Supports investigations and AML/CFT action.

Companies that operate with crypto in Portugal must follow strict compliance rules:

• Registration with Banco de Portugal before offering services as a VASP.
• Appointment of an AML/CFT officer with clear duties and reporting lines.
• Customer due diligence (CDD) for occasional transactions of €15,000 or more, or €1,000 or more in virtual-asset activity.
• Enhanced due diligence for high-risk situations, such as dealings with politically exposed persons or blacklisted jurisdictions.
• KYC obligations such as identification of clients, verification of beneficial owners, and record keeping in a central register.
• Suspicious transaction reporting to the UIF and prohibition of dealings with shell banks.
• Ongoing reporting to Banco de Portugal.

Note: Registration with Banco de Portugal does not imply prudential supervision or endorsement of services.

Conclusion: cryptocurrency legislation in Portugal

Cryptocurrency activities in Portugal are subject to regulatory oversight by several national authorities under evolving EU and domestic laws. Oversight is divided among the central bank, securities authority, tax authority, and financial intelligence unit. Businesses must follow strict AML, KYC, and reporting rules. Tax obligations and compliance requirements continue to evolve alongside EU legislation.

Cryptocurrency investments carry significant risk. You may lose all your invested capital. Prices are volatile and past performance is not a reliable indicator of future outcomes.