Tax-Free Long-Term Crypto Gains in Portugal: How to Keep 100% of Your Profits

If you're holding cryptocurrency for the long term, Portugal might be the most tax-friendly place in Europe right now. Forget the confusing rules in other countries. In Portugal, if you hold your crypto for more than 365 days, you pay zero tax when you sell it. That’s it. No hidden fees. No progressive rates. Just pure, clean profit.

How Portugal’s Crypto Tax Rules Actually Work

Portugal didn’t always have clear crypto rules. For years, there was no tax on crypto gains at all. That changed in 2023, but not in a way that hurts long-term investors. The government introduced a new system that targets traders, not holders.

Here’s the breakdown:

Long-term gains (over 365 days): 0% tax. Period. Whether you made €1,000 or €1 million, if you held it for a year or more, you keep it all.
Short-term gains (under 365 days): 28% flat tax. This applies when you buy and sell within a year.
Crypto-to-crypto trades: No tax. Swapping Bitcoin for Ethereum? No taxable event.
Staking or lending rewards: Taxed at 28% as capital income, regardless of how long you held the asset.
Professional trading or mining: Treated as self-employment income, taxed between 14.5% and 53% based on your total yearly income.

The key is timing. Selling after 365 days triggers zero tax. Selling before? You pay 28%. It’s simple. No complicated calculations. No guesswork.

What Counts as a Holding Period?

The 365-day rule isn’t just a suggestion-it’s the law. But here’s what most people get wrong: the clock starts when you acquire the crypto, not when you first buy it on an exchange.

For example:

You buy 1 BTC on January 15, 2025.
You sell it on January 16, 2026. That’s 366 days. Tax-free.
You sell it on January 14, 2026. That’s 364 days. 28% tax applies.

You need to track your acquisition dates. If you bought crypto in multiple batches, each batch has its own clock. You can’t average them out. Portugal uses the first-in, first-out (FIFO) method by default unless you can prove otherwise with records.

That means if you bought 0.5 BTC in March 2024 and another 0.5 BTC in July 2024, and you sell 0.7 BTC in April 2025, the first 0.5 BTC sold counts as long-term (held over 365 days), and the next 0.2 BTC counts as short-term (held under 365 days). Only the short-term portion is taxed.

When Does Tax Actually Trigger?

Portugal doesn’t tax unrealized gains. You don’t pay tax just because your Bitcoin went from €30,000 to €60,000. You only pay when you cash out-or spend it.

Taxable events in Portugal:

Selling crypto for Euros (or any fiat currency)
Using crypto to buy goods or services
Exchanging crypto for another crypto if it’s considered a security or traded outside the EEA

Non-taxable events:

Transferring crypto between your own wallets
Buying crypto with fiat
Crypto-to-crypto swaps (as long as neither asset is classified as a security)

This is a huge advantage over countries like the U.S., where even swapping ETH for SOL is a taxable event. In Portugal, you can move between tokens freely without triggering a tax bill.

Panicked trader racing against a clock labeled 364 days while another relaxes with 0% tax sign

How Portugal Compares to the Rest of Europe

In 2025, Portugal still leads Europe in crypto tax friendliness. Here’s how it stacks up:

Comparison of Crypto Capital Gains Tax Rates in Europe (2025)
Country	Short-Term Gains	Long-Term Gains	Staking/Lending Tax
Portugal	28% flat	0%	28% flat
Germany	Up to 45% (income tax)	0% (if held >1 year)	Up to 45%
France	30% flat	30% flat	30% flat
Spain	19%-28% (progressive)	19%-28% (progressive)	19%-47%
Italy	26% flat	26% flat	26% flat
Belgium	33% (personal income tax)	0% (only if private investor, strict conditions)	33%

Portugal’s 28% flat rate for short-term gains is lower than Spain’s top rate of 47% for staking rewards. Germany offers the same 0% long-term exemption, but its income tax brackets can push short-term gains to 45%. France and Italy tax everyone the same-no matter how long you hold.

Portugal wins because it gives you control. You can choose to hold and avoid tax entirely, or trade actively and pay a predictable 28%. No surprises.

What You Need to Keep Records Of

The Portuguese tax authority doesn’t require you to file crypto reports separately. But if you’re audited-and they do audit high-net-worth individuals-you need to prove your holding periods.

You must keep:

Exact date and time of each crypto purchase
Amount purchased and price in EUR
Wallet address or exchange used
Date and time of each sale or spend
Amount sold and sale price in EUR
Transaction IDs or receipts

Many investors use tools like CoinTracking, Koinly, or CryptoTaxCalculator. These platforms sync with exchanges, auto-calculate FIFO, and generate reports in Portuguese tax format. Some even auto-fill your IRS (Portuguese tax office) forms.

Don’t rely on exchange statements alone. They often don’t show acquisition dates clearly, especially if you bought through multiple platforms or peer-to-peer.

Who Should Consider Moving to Portugal?

You don’t need to be a Portuguese citizen to benefit. Non-residents who become tax residents can claim the same rules.

To qualify as a tax resident, you must:

Live in Portugal for more than 183 days in a calendar year, OR
Have a home in Portugal that you intend to use as your main residence

Digital nomads, crypto founders, and remote workers are flocking to Portugal because of this. Cities like Lisbon and Porto have thriving crypto communities, co-living spaces for investors, and English-speaking accountants who specialize in crypto tax.

The Non-Habitual Resident (NHR) program ended in 2024, but the crypto tax exemption remains. You don’t need special status. Just be a tax resident and hold your crypto for a year.

Friendly Portuguese tax office with smiling sun shape welcoming crypto investors while other countries fume

What Doesn’t Work in Portugal

There are limits. The tax exemption doesn’t apply if:

Your crypto is classified as a security (like some tokenized stocks or utility tokens with equity features)
You hold assets outside the European Economic Area (EEA) and trade them through non-EEA platforms
You’re a professional trader (earning over €10,000/year from crypto)

If you’re mining, running a node, or doing DeFi arbitrage regularly, Portugal treats that as business income. You’ll need to register as self-employed and pay progressive income tax.

Also, if you’re a U.S. citizen, you still owe taxes to the IRS. Portugal’s rules don’t override U.S. tax law. But if you’re not a U.S. citizen, Portugal’s system is one of the cleanest in the world.

Real-World Example: How Much You Save

Let’s say you bought 5 ETH in January 2024 at €2,000 each. Total cost: €10,000.

By January 2026, ETH is worth €4,000 each. You sell all 5.

Hold period: 2 years → 730 days → tax-free
Proceeds: €20,000
Profit: €10,000

In Portugal? You keep €10,000.

In Spain? You pay 28% → €2,800 tax → you keep €7,200.

In France? You pay 30% → €3,000 tax → you keep €7,000.

In Germany? You pay up to 45% on short-term gains, but since you held over a year, you pay nothing. Same as Portugal.

But if you sold after 11 months? Portugal charges €2,800. Germany charges up to €4,500. Portugal wins again.

What’s Next for Portugal’s Crypto Tax Rules?

Portugal is watching the EU’s MiCA regulation closely. MiCA sets standards for crypto asset issuance and AML compliance, but it doesn’t override national tax laws. Portugal has made it clear it will keep its long-term exemption.

Experts expect updates on DeFi, NFTs, and CBDCs, but the core rule-365-day exemption-won’t change. Why? Because it works. It attracts investment. It keeps people in the country. It reduces tax evasion by giving people a clear, legal path.

The message is simple: hold. Don’t trade. Portugal rewards patience.

Do I need to be a Portuguese citizen to get tax-free crypto gains?

No. You just need to be a tax resident of Portugal. That means living there for more than 183 days a year or having a home you use as your main residence. Non-citizens, including digital nomads, can claim the same tax exemption as long as they meet residency rules.

What if I sell crypto after 364 days by accident?

You’ll owe 28% on the profit. Portugal doesn’t round up or give grace periods. The rule is exact: 365 full days. If you’re close, it’s better to wait. The tax savings on a large gain can be tens of thousands of euros.

Are NFTs taxed the same as crypto in Portugal?

No. NFTs are treated separately. If an NFT is considered a collectible or unique digital asset, it may fall under different rules. Gains from selling NFTs are generally taxed as capital gains at 28% if held less than a year, and exempt if held longer. But if the NFT represents ownership in a company or generates income (like royalties), it may be treated as business income.

Can I avoid tax by using a crypto wallet outside Portugal?

Not if you’re a Portuguese tax resident. Where you store your crypto doesn’t matter-only where you live and where the sale happens. If you’re a resident and sell crypto for euros, it’s taxable based on your holding period, regardless of wallet location. However, if you trade crypto on a non-EEA platform and the asset is classified as a security, you may lose the exemption.

Do I need to declare crypto holdings if I didn’t sell?

No. Portugal only taxes realized gains. If you haven’t sold, swapped, or spent your crypto, you don’t need to report it. The tax authority doesn’t ask for your wallet balances. You only report transactions that triggered a taxable event.

What happens if I move out of Portugal after holding crypto for 360 days?

You lose the exemption. The tax rule applies only if you’re a Portuguese tax resident at the time of sale. If you move to another country before hitting 365 days, your new country’s rules will apply. For example, if you move to Germany and sell after 368 days total, Germany may still tax you if you held less than a year as a resident there. Timing your move matters.

7 Comments

josh gander
January 30, 2026 AT 09:39

Portugal is basically the crypto paradise we all dream about 🌴💰
Hold for a year, cash out, and just… keep it all. No taxes, no drama, no IRS breathing down your neck. I’m seriously considering a move to Lisbon just to lock in this 0% rule. Who needs New York when you’ve got sun, surf, and zero capital gains tax?
Also, swapping ETH for SOL tax-free? That’s the kind of freedom that makes you want to hug your wallet. 🤗
Tom Sheppard
January 30, 2026 AT 10:01

bro i just sold my btc after 364 days and cried for 3 hours 😭
then i bought back in and waited another day. now i’m chillin’ like a villain. portugal’s rules are stupid simple. hold >365 = free money. no cap. no bs. just math.
also, fifo is kinda annoying but at least it’s clear. no guessing games. i use koinly now. it’s a lifesaver.
Devyn Ranere-Carleton
February 1, 2026 AT 03:14

wait so if i buy crypto in march 2024 and sell in april 2025, but i moved to canada in january 2025, do i still get the 0%? or does canada tax me based on when i acquired it?
also, what if i hold it for 366 days but sell while visiting portugal on vacation? does the location of the sale matter or just my tax residency?
someone pls explain this to me like i’m 12.
Jerry Ogah
February 2, 2026 AT 06:59

THIS IS WHY AMERICA IS FALLING BEHIND. WE LET WALL STREET AND THE IRS SCAM US OUT OF OUR HARD-EARNED GAINS WHILE EUROPEANS LAUGH ALL THE WAY TO THE BANK.
Portugal isn’t just tax-friendly-it’s morally superior. You want to hold your assets? You should be rewarded. Not punished.
And yet, here in the US, we’re still taxing people for being patient. Pathetic.
Andrea Demontis
February 2, 2026 AT 11:43

There’s something deeply philosophical about this system. It doesn’t just incentivize holding-it rewards patience as a virtue. In a world that glorifies speed, liquidity, and instant gratification, Portugal says: wait. Reflect. Let value unfold.
And the fact that they distinguish between speculation and investment? That’s not just policy-it’s wisdom.
It treats crypto not as a casino chip but as a form of digital capital. And that shift in mindset? That’s what makes this law revolutionary, not just convenient.
Raju Bhagat
February 3, 2026 AT 15:24

bro i just moved to portugal last year and my crypto portfolio doubled since then
no taxes no stress no cap
now i’m buying a villa in algarve with my eth profits
who needs a 9 to 5 when you can just hold and chill
also if you dont have a wallet you are not living
send me your btc i will help you with your life
love u all 🤝
laurence watson
February 3, 2026 AT 23:44

Really appreciate how clear this is. So many people get overwhelmed by crypto taxes, but Portugal makes it feel… human.
It’s not about tricking the system-it’s about giving people a fair shot. Holding for a year isn’t a loophole, it’s a signal that you believe in the asset.
And honestly? That’s the kind of policy that builds real trust. Not fear. Not fines. Just fairness.