How Portugal Taxes Crypto in 2026: The 365-Day Rule

"Portugal doesn't tax crypto" stopped being true in 2023. It comes down to one number: 365 days. Hold a crypto-asset for 365 days or more and the gain is excluded from taxation; sell sooner and the year's positive balance is taxed at 28%. Here is the full picture, verified against the tax code and the Tax Authority's own leaflet.

Where the rules come from

The crypto tax regime was introduced by the 2023 State Budget (Law 24-D/2022) and has been in force since 1 January 2023. The tax code now defines a crypto-asset as a digital representation of value or rights that can be transferred or stored electronically using distributed-ledger or similar technology (CIRS Article 10).

The 365-day rule

Gains on crypto-assets held for 365 days or more are excluded from taxation as capital gains (CIRS Article 10). This is the rule everything else orbits: long-term holders of ordinary crypto-assets, as individuals, generally fall outside the capital-gains charge.

Under 365 days: 28%

Sell before the 365-day mark and the year's positive balance of crypto capital gains is taxed at an autonomous rate of 28%, with the option to aggregate it with your other income if that is better for you (CIRS Article 72). Short-term trading, in other words, is squarely taxable.

The three buckets

Not all crypto income is a capital gain. Portuguese law splits it into three categories:

• Capital gains (category G) — selling crypto-assets; the 365-day rule and the 28% short-term rate live here.
• Activity (category B) — issuing crypto, including mining, or validating transactions, is treated as a business activity (CIRS Article 4). It follows the rules for self-employment income, not the capital-gains rules.
• Passive yield (category E) — capital income from crypto is taxed at 28%, with an aggregation option for residents.

Two carve-outs to know

NFTs — unique, non-fungible crypto-assets are carved out of the exclusion (CIRS Article 10). And there are special rules where there is a link to non-cooperative jurisdictions (tax havens); we keep that general here, because the precise wording is what governs — check it for your situation. The headline "hold a year, pay nothing" does not extend automatically to every asset or structure.

FAQ

Does Portugal tax cryptocurrency?

Yes, since 1 January 2023. Long-term gains (assets held 365 days or more) are generally excluded, but short-term gains, activity income and passive yield are taxable.

What is the 365-day crypto rule?

Gains on crypto-assets held for 365 days or more are excluded from capital-gains taxation; sell sooner and the year's positive balance is taxed at 28%.

Are NFTs covered by the exclusion?

No. Unique, non-fungible crypto-assets (NFTs) are carved out of the exclusion.

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