Crypto Tax in Portugal 2026: The 365-Day Rule and 28% Rate Explained

Photo: GualdimG / Wikimedia Commons, CC BY-SA 4.0

Crypto tax in Portugal is simpler than in most of Europe, but it is no longer the "tax-free crypto paradise" people still talk about online. Since the 2023 rules, gains on coins you hold for less than 365 days are taxed at a special 28% rate, while coins held for 365 days or more are usually excluded from tax. This beginner guide explains how the 365-day rule works, when swaps and staking rewards are taxed, which IRS annex to use, and the mistakes that trip people up.

Crypto tax in Portugal: the basic rule in 2026

The rules come from Law 24-D/2022, which added crypto-assets to the Portuguese personal income tax code (Código do IRS). According to the Tax Authority's own guide to financial products, the system for crypto that is not a security looks like this:

Held less than 365 days: the gain is taxed at the special rate of 28%. You can instead choose to add it to your other income (englobamento) and pay the normal progressive IRS rates.
Held 365 days or more: gains are excluded from taxation, and so are losses. You still have to declare the sale.
Crypto-to-crypto swaps: not taxed at the moment of the swap. The coin you receive takes over the acquisition value of the coin you gave up, and tax is only due when you eventually sell for euros or another fiat currency.

You pay tax on the gain, not the sale amount. The gain is the sale value minus the purchase value, and the fees you actually paid on buying and selling can be deducted.

How the 365-day rule works in practice

The 365 days are counted date to date, not by calendar year. If you bought on 10 February 2025 and sold on 10 January 2026, that is only 334 days, so the gain is taxable even though it crosses a new year.

Three details matter for beginners:

Old coins count. A transitional rule in Law 24-D/2022 means time held before the law took effect on 1 January 2023 counts toward the 365 days. A binding ruling from the Tax Authority confirmed this for coins bought in 2019.
First in, first out. Portuguese tax law treats the units you bought first as the ones you sell first. You cannot pick your "long-held" coins if you also bought more recently. According to Academia das Finanças, this applies per platform if you hold the same coin in several places.
The counterparty must be in a cooperating country. The exclusion only applies when the transaction is between residents of the EU/EEA or of a country that has a tax treaty or information-exchange agreement with Portugal. If not, the gain is taxed at 28% whatever the holding period.

If you have been buying regularly, for example through a monthly plan like the one in our guide to Bitcoin savings plans in Europe, keep a full purchase history so you can show which units passed the 365-day mark.

Swaps, stablecoins, staking and mining

Swapping BTC for ETH, or for a stablecoin such as USDC, generally does not trigger tax at the time of the swap. But paying for goods or services with crypto counts as a sale. Whether the 365-day clock continues after a swap is not spelled out in the law, so keep the date and value of every swap. NFTs fall outside the tax definition of crypto-assets because they are unique.

Income that is not a sale is treated differently:

Interest or rewards paid in euros (for example lending on a platform) are capital income (Category E), taxed at 28% or added to your other income.
Rewards paid in crypto are not taxed when you receive them. They are taxed as a capital gain when you later sell that crypto, so record the date and value of each reward.
Mining and running your own validator are treated as business activity (Category B), which means registering an activity with the Finanças.
Frequent trading can also be reclassified as business income. The Tax Authority looks at each case separately.

Summary table: which IRS annex to use

Situation	Tax treatment	Where to declare
Sold after less than 365 days, Portuguese platform	28% on the gain (or englobamento)	Anexo G, Quadro 18A
Sold after less than 365 days, foreign platform	28% on the gain (or englobamento)	Anexo J, Quadro 9.4A
Sold after 365 days or more	Excluded from tax, but must be declared	Anexo G1, Quadro 7
Counterparty outside EU/EEA with no tax agreement	28% regardless of holding period	Anexo G, Quadro 18B
Crypto-to-crypto swap	No tax at the swap; cost basis carries over	Nothing until you sell for fiat
Euro interest from a foreign platform	Category E, 28%	Anexo J, Quadro 8

Sales made in 2026 go into the IRS return filed between 1 April and 30 June 2027. For each sale you enter the purchase date and value, the sale date and value, the fees, and the country of the platform and the counterparty. Export the transaction history from every exchange before you start.

A simple worked example

Example figures for illustration only: you buy 1 ETH for €2,500 with a €5 fee and sell it four months later for €3,200, paying another €5 fee. Your gain is €3,200 minus €2,500 minus €10 in fees, which is €690. At 28%, the tax is €193.20. If you had waited until the 365-day mark before selling, the same gain would normally be excluded from tax, but you would still list the sale in Anexo G1.

If you choose englobamento for short-term crypto gains, a net loss for the year can be carried forward for the next five years, according to the Tax Authority's guide. Run both options in the IRS simulator on the Portal das Finanças before deciding.

Leaving Portugal and the new EU reporting

Moving abroad matters too. The Anexo G1 instructions say that losing Portuguese tax residence is treated like a sale of your crypto, so the holding-period rules apply at the moment you leave. If you are moving to Spain or Austria, compare the rules in our guides to crypto tax in Spain and crypto tax in Austria.

From 2026, crypto platforms across the EU must report their customers' transactions to tax authorities under the DAC8 directive, so Portugal's Tax Authority will increasingly see what you traded. Our explainer on DAC8 and EU crypto tax reporting covers what gets shared.

Common mistakes to avoid

Counting the 365 days as "one calendar year" instead of date to date.
Not declaring tax-free long-term sales in Anexo G1.
Calculating 28% on the full sale amount instead of the gain.
Forgetting to deduct buying and selling fees.
Losing track of swaps, so you can't prove your cost basis later.

FAQ

Is crypto tax-free in Portugal?
Only partly. Gains on crypto held for 365 days or more are generally excluded from tax, but short-term gains are taxed at 28%, and long-term sales still have to be declared.

Do I pay tax when I swap Bitcoin for a stablecoin in Portugal?
Generally no. The stablecoin takes over the original cost basis, and tax is due when you sell for euros or another fiat currency.

Are staking rewards taxed in Portugal?
Rewards paid in crypto are not taxed when received; they are taxed as a capital gain when you sell them. Rewards or interest paid in euros are Category E income taxed at 28%.

Important disclaimer: This article is general information, not financial or tax advice. Tax rules change and individual situations differ. For relevant amounts, airdrops or business activity, ask a certified accountant (contabilista certificado) or request a binding ruling from the Tax Authority.

Bottom line

Crypto tax in Portugal comes down to one date: hold a coin for 365 days or more and the gain is usually excluded from tax; sell sooner and you pay 28% on the gain, or choose englobamento. Swaps are not taxed until you cash out, rewards in crypto are taxed when sold, and every sale, taxable or not, belongs on your IRS return. Keep clean records from day one.

Sources

Advice Me publishes general information only. Always verify current rules with official sources before acting.

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