Cryptocurrency Taxation in Portugal

Part 5 of “Crypto Taxes Around the World”

Bom dia! Tudo bom amigo? Is Portugal as friendly towards crypto as its natives are to foreigners? Let’s find out.

Temperate weather, beautiful beaches, low crime rate, delicious food…Undeniably, Portugal has something for everyone. Did you know Portugal is considered one of the countries with the best quality of life in the world for expats? This may be surprising for many as Portugal is often seen as the poor child of Western Europe.

However, the Iberian peninsula’s fortunes have been improving in recent years: Since 2014, Portugal’s economy has been growing steadily and living standards are increasing.

For us crypto lovers, it gets even better as Portugal offers the ultimate grail: A friendly tax jurisdiction inside the European Union.

Did you really say this paradise offers tax-free benefits? Tell me more!


The Portuguese Tax Authority (PTA) recently clarified its position on cryptocurrency taxation by reiterating that income received in crypto, crypto-to-crypto transactions and crypto-to-fiat conversions are not subject to capital gains taxes or value-added taxes (TVA).

Basically, this means that any money you make from trading cryptocurrencies is completely tax-free!

However, as with every other country studied so far, any revenue made from selling goods or services with crypto is subject to TVA and companies doing business in crypto are subject to profit taxes.


How easy is it to cash out your crypto tax-free in Portugal?

The most important aspect of any country study is evaluating how easy it is for an individual to obtain the tax residency status necessary to cash out his gains.

To be considered a Portuguese tax resident you need to either own a house or stay in the country for more than 183 days per year.

EU citizens can move to Portugal without any restrictions but they need to obtain a registration certificate to stay for longer than three months.

Aspiring residents need to apply for a Fiscal Identification Number (NIF) through the PTA. Having a NIF is not a legal obligation but you will not be able to open a bank account and cash out your cryptos tax-free without one.

The NIF is your gateway to tax-free status

The requirements for obtaining a NIF are minimal: you only need to present a photo ID, a proof of address and pay the EUR 6.80 fee for the issuance of your tax card. Once you obtain your NIF, you can open a bank account and benefit from Portuguese tax laws. Easy peasy!

For non-EU residents, the process will be more complicated as they need to apply for a residence visa.


In sum, Portugal is one of Europe’s friendliest crypto tax jurisdictions. As with Switzerland, the occasional trader is completely capital gains tax exempt but Portugal’s crucial advantage is that EU citizens can obtain tax residency very easily.

EU crypto enthusiasts should definitely check out this beautiful country as it not only offers a very favorable tax regime but also an incredible quality of life.

The view is always better when it’s tax-free

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