A legal concept of crypto-asset has been introduced into the Portuguese IRS Code, aligned with the European MiCA (Markets in Crypto-Assets) regulation. A crypto-asset is defined as any digital representation of value or rights that can be transferred or stored electronically using distributed ledger technology. NFTs – Non-Fungible Tokens – are expressly excluded from this definition and, in principle, from the scope of taxation.
Income from crypto-assets is taxed according to three distinct categories:
- Category B (professional and business income) includes income from activities such as issuing crypto-assets, mining, or validating transactions. This income is subject to the progressive tax rates of the IRS, with a coefficient of 0.15 under the simplified regime (effective exemption of 85%). However, mining is penalised for environmental reasons by the application of a coefficient of 0.95.
- Category E (capital income) includes earnings from crypto-assets, notably staking. This income is taxed at 28%, unless aggregation is chosen, and is not subject to withholding tax. Interest earned in cryptocurrency is only taxable when converted to fiduciary money.
- In category G (capital gains), the sale of crypto-assets for valuable consideration is subject to a flat rate of 28%, with total exemption if the assets are held for at least 365 days, including for periods prior to 2023. Losses can be carried forward for five years in the event of aggregation. The scheme also provides for an exit tax in the event of a change in tax residence.
Finally, some enhanced reporting obligations apply to crypto-asset service providers and taxpayers holding assets in low-tax jurisdictions. Proper income classification is essential to ensure compliant taxation.
19 December 2025
By RogĂ©rio Fernandes Ferreira, Marta Machado de Almeida, Romy Alfredo Bouery & Tania Sofia Tavares (French Desk) – RFF Lawyers, Lisbon (Portugal)
