The Portuguese State Budget for 2023 has introduced the effective taxation of crypto assets transactions in Portugal.

The income obtained from crypto assets will be qualified as Capital Gains (CAT G) and subject to a 28% tax rate. Nonetheless, we must emphasize that it has also been foreseeing an exemption in case the crypto-active is held for 365 days or more. Should the income be related to operations concerning the issuance of crypto-active assets, including the mining or validation of crypto-active transactions through consensus mechanisms, it will also be taxable as self-employment income and subject to the usual progressive tax rates of up to 48%.

Finally, we point out that if the crypto assets should be used as a “currency”, the underlying transaction will keep its nature, and the crypto assets will be considered just as a payment method. For those taxpayers for whom the NHR status is granted in Portugal, the taxation will follow the nature of the income.

To read the full article, please download the file.