Portugal has long attracted crypto investors, digital nomads, and entrepreneurs looking for a favorable tax environment in Europe. And it remains genuinely compelling — but the rules have changed significantly since 2023, and it’s important to understand exactly what you’re getting into before you pack your bags.
The short version: Portugal is still one of the best places in Europe to hold crypto long-term. If you hold for more than 365 days, your gains are tax-free. That’s a real and meaningful benefit. But the old Non-Habitual Resident (NHR) program that made Portugal a near-blanket tax haven is gone. Its replacement, IFICI, is a much narrower tool that most passive crypto investors won’t qualify for.
Here’s the full picture.
Since writing the original version of this article, I’ve personally received a ton of emails from people who have moved to Portugal or are in the process of moving, many of them with significant crypto holdings. That tells me there’s real appetite for this information — and also real risk of people acting on outdated advice about NHR that no longer applies to new arrivals.
See also: The Best Crypto Trading Apps
For those of you who have never visited Portugal, here’s some background.
Portugal is a member of the European Union and sits right on the Western edge of Europe, bordering Spain. Its climate is generally similar to Spain but it sits on the Atlantic coast, which means its seas are wavier and colder — a surfers’ paradise. The population sits at around 10 million, healthcare is ranked among the best worldwide, the local population is friendly and largely English-speaking, and crime levels are very low.
Portugal went through a genuinely tough economic period in the early 2000s, which led many younger people to leave and seek better conditions abroad. Tax incentive programs like the NHR were a deliberate countermeasure — an attempt to attract expats, returning Portuguese citizens, and international talent back to the country.
Portugal is one of the few countries that has been genuinely forward-looking about attracting high-net-worth individuals, investors, and entrepreneurs. But the specific tools it offers have changed. Let me walk you through what’s current.
See also: Lisbon vs Barcelona
What Happened to the NHR?
The original Non-Habitual Resident (NHR) program ran from 2009 to 2023. It was one of the most generous tax regimes in Europe — qualifying residents paid a flat 20% on high-value Portuguese-sourced income, and foreign income (including dividends from foreign companies) was broadly exempt from Portuguese tax. For crypto holders under NHR, this was extremely powerful.
The NHR closed to new applicants on 31 December 2023. Anyone who registered before that date continues to enjoy their benefits for the full 10-year period. But for anyone who hasn’t already registered, the old NHR is gone.
Portugal replaced it with a new program called IFICI.
IFICI (NHR 2.0): Much Narrower Than the Original
IFICI — Incentivo Fiscal à Investigação Científica e Inovação — came into effect on 1 January 2025. The headline numbers look similar to the old NHR: a flat 20% tax on qualifying Portuguese-sourced income, with foreign income exempt, for a 10-year period.
The critical difference is who qualifies.
Do you want to cut straight to the chase and know for sure if Portugal is the right place for you to move to? Schedule a consultation with my trusted Portuguese crypto lawyer to get all your questions answered.
Book a consultation with a Portuguese lawyer
Alternatively, are you still undecided about where to live or want to speak to me directly about crypto or other topics that I write about?
IFICI is specifically designed for people working in science, technology, and innovation. To qualify you generally need to:
- Not have been a Portuguese tax resident in the previous 5 years
- Hold a university degree (EQF Level 6+ Bachelor’s or PhD)
- Fall into one of these categories: university professors or scientific researchers; employees of companies with 50%+ export turnover in qualifying sectors (manufacturing, IT, R&D); employees or founders of certified startups; or certain highly qualified professionals in science, technology, healthcare, or green energy
- Spend 183+ days per year in Portugal or maintain a permanent home there
- Apply by 15 January of the year following establishment of residency
Passive investors — including crypto traders and holders who don’t work in a qualifying field — do not qualify for IFICI. The regime is explicitly designed for active contributors to innovation, not for financial structuring. Retirees are also excluded.
If you used the old NHR and are still within your 10-year window, none of this affects you. If you’re arriving in Portugal as a new resident from 2025 onwards, IFICI is the only game in town — and most crypto investors won’t qualify for it.
How Crypto Tax Works in Portugal
The crypto space is getting more complex over time with staking, lending, DeFi, NFTs, and tokenized assets — and each of those needs to be considered carefully. I’ll keep expanding this section based on my own research and discussions with Portuguese tax experts. Here’s the current state of play.
Crypto held more than 365 days: tax-free
This is the headline benefit that still makes Portugal genuinely attractive for long-term crypto investors. If you hold crypto assets for more than 365 days, any gains on sale are exempt from Portuguese tax. This applies regardless of whether you qualify for IFICI or any other special regime — it’s baked into the standard tax code.
This puts Portugal alongside Germany as one of the few EU countries that fully exempts long-term crypto gains. For a Bitcoin holder with a multi-year horizon, that’s a real and meaningful advantage.
Crypto held less than 365 days: taxed at 28%
Short-term gains — assets sold within 365 days of purchase — are taxed at a flat 28%. This has been the rule since 2023, when Portugal closed the pre-2023 loophole that made virtually all crypto trading tax-free.
Staking and lending income: taxed at 28%
Passive crypto income — staking rewards, lending yield, and similar — is generally taxed at 28% in Portugal. This is not covered by the 365-day exemption, which applies specifically to capital gains from sale. If you’re generating meaningful income from DeFi or staking, factor this in.
Reporting requirements since 2024
Since 2024, all crypto transactions must be reported in the annual Portuguese tax return (Modelo 3), even if the gains are fully exempt. If you hold crypto for more than a year and pay zero tax on the gains, you still need to declare the transaction. Good record-keeping and crypto tax software are essential.
Tokenized securities
Tokenized securities may not qualify for the 365-day exemption — the treatment is less clear-cut than for standard crypto assets. If you hold tokenized stocks, bonds, or similar instruments, get specific advice.
Non-cooperative jurisdictions
Tax exemptions may not apply to crypto assets linked to exchanges or structures in jurisdictions on Portugal’s blacklist. If you’re using platforms based in blacklisted territories, that’s worth checking.
Get in touch with a Portuguese crypto tax lawyer
The Honest Summary: Is Portugal Still Good for Crypto?
Yes — with an important caveat.
For long-term holders (1+ year), Portugal remains one of the best options in Europe. Zero tax on gains after 365 days is a genuine, substantive benefit. If you’re the type of investor who buys and holds, Portugal is still a strong choice.
For short-term traders and active DeFi participants, Portugal is no longer the obvious answer. A 28% flat rate on short-term gains and staking income is competitive with other European countries, but it’s not a standout advantage.
For most passive crypto investors hoping to use IFICI to avoid tax on other income, the regime won’t help. The old NHR era of moving to Portugal and legally paying near-zero on foreign dividends and investment income is over for new arrivals. If you’re a researcher, a qualified tech professional, or a startup founder, IFICI may genuinely suit you. If you’re primarily a passive investor, you’ll need to look at other structures — read my article on European tax structures for more on that.
Inheritance Taxes
There is no inheritance tax in Portugal, but stamp duty may apply to certain transfers of assets — including immovable property, movable assets, and securities located in Portugal — as part of an estate.
The position on cryptocurrencies specifically remains legally ambiguous. In the absence of explicit legislation or a binding ruling from the Portuguese tax authorities, there’s a reasonable argument that the relevant legal provisions don’t expressly foresee crypto assets, which could exclude them from stamp duty. That said, estate planning with crypto in Portugal should be assessed case by case, with all variables considered.
VAT
In a 2019 official ruling, the Portuguese Tax Authority confirmed the precedent from the Court of Justice of the European Union (Case C-264/14, Skatteverket v. David Hedqvist) to argue that although cryptocurrencies such as Bitcoin are analogous to a “means of payment” and therefore technically subject to VAT, they are exempt by application of VAT exemption rules consistent across EU Member States.
How to Buy Bitcoin in Portugal
You can use the world’s best crypto exchanges in Portugal without any problem. There are no limitations imposed by the country or by any of the major exchanges.
My suggestions:
You can also use crypto borrowing and lending platforms such as Nexo and YouHodler without any problems. Keep in mind that lending and staking income will be taxed at 28% in Portugal, so factor that into your calculations.
Even if your crypto gains are fully exempt from tax, you still need to keep good records and report transactions in your annual Modelo 3 return. A tool like Cointracker makes this a lot easier. See my article on crypto portfolio and tax preparation tools for the best options.
Crypto-Friendly Banks in Portugal
Please leave a comment if you have found a suitable crypto-friendly bank in Portugal. You can also have a look at the best European crypto debit cards that work in Portugal.
Buying Property with Crypto
Some real estate sales in Portugal have already been done using crypto. The most famous case is this one. I expect this to become more commonplace given the number of crypto people moving to Portugal.
Contact me if you want to buy property with crypto; I’ll put you in touch with my agent.
Golden Visa Investments
If you’re looking for good golden visa-related investments, I can put you in touch with a fund that invests within Portugal, and with an architecture firm that creates homes targeted directly towards satisfying the requirements of getting a Golden Visa. Just get in touch and I’ll put you through.
Participating in the Portuguese Crypto Community
You can follow this Twitter list that features many of the big crypto players that are based in Portugal. Please let me know about other crypto players and communities in Portugal by leaving a comment below or by contacting me.
Hard Fork Cafe is a cool YouTube channel dedicated to crypto, although you need to understand Portuguese for that. It’s a good way to practice learning the language though if you want to hit two birds with one stone.
There are lots of purposes and utilization potential for the cryptocurrency projects and the overall blockchain tech from fast & secure transactions to wider use in the medical field for example or supply chain sectors, banking & fin tech, etc… The potential is enormous and we are still in the early development, testing, utilization & adoption stages. There is still lots of room to grow, progress and more innovation to happen. The crypto universe & blockchain tech will keep growing, transforming and developing rapidly over the next 7-10 years, there will be lots of new projects, utilization and faster adoption with $10+ trillion crypto market cap potential.
What the G20 economies need to do is to adopt crypto-friendly regulations and legal frameworks and facilitate its adoption into the mainstream financial sector. The crypto universe is here to stay with us and the EU with MICA Act has proven that it will create a universal EU legislation, which will in fact help facilitate faster crypto adoption rates % among citizens and growth of the crypto & blockchain start-ups across the EU territory. Other countries need to follow the suit.
So the 2 crypto ,,friendly” banks in crypto friendly Portugal do not let you to cash out from exchanges , in the case of Santander bank , or , in the case of Millenium bank you need a ,,friendly relationship ” with the manager !!?
Does it mean you have to bribe him ? What percentage ?
Like everywhere else in the EU , nothing is clear about tax laws , the bureaucrats can drive you insane with useless paperwork , different gov offices give you different info , they re just justifying their miserable lives by making your life harder.
Very soon you wont be able to withdraw your money if you re not vaccinated.. Read it here first !
Hi Jean,
Thanks for the information, really appreciate it! Can you recommend a good tax lawyer/consultant in Lisbon? I am truly considering moving to Portugal in the next few months but would need to figure out all the details about crypto taxation. Happy to share my experience afterward, if everything works out.
🙂
You’re welcome and yes, as I mentioned in the article, am happy to help put you in touch with lawyers. Please fill in the form and I’ll put you through to the best lawyer I know.
regarding: “From the information I have so far, it seems that Santander and BBVA both play nice with crypto exchanges.”
My €-transfer from a crypto exchange to Santander was sent back to the crypto exchange (all this back & forth took around 3 weeks). On the Santander Hotline they told me that “No portuguese bank will accept € from a crypto exchange as those are the regulations”. On the other hand in “crypto-unfriendly” countries banks have no problem with € from crypto-exchanges. Weird, that Portugal counts as “crypto friendly”. I guess that all successful transfers were made from still yet unblocked/unknown/small exchanges. Anyone to comment on this?
Millenium have accepted euros from exchanges in pretty substantial amounts. You need to make sure that you alert the bank manager and ideally have a relationship built up before you make any transfers. This applies to any bank at the moment, not only in Portugal.
Hi Jean – I just opened an account with Millenium BCP (from abroad, through BORDR) and was told (via email) from my account manager that they do not accept euro from any crypto exchange. I’m struggling with this because I had gone through this process specifically to be able to access funds when I landed in Portugal later this year. Any advice on how I should proceed or what other banks I should reach out to? Thanks
Just to update: after talking to Millenium extensively, they went and asked their Compliance department and got back with 1) they support fiat withdrawals from cyrypto exchanges and 2) for larger amounts you need to prove that the money came originally from your source of income.
I’m still trying to understand exactly what that second part means, but overall it’s positive.
Thanks for the update Ian, that’s in line with what I’ve been told.
Tax on crypto could be an increasingly hot topic for the coming months.
May be helpful to see also someone’s personal experience dealing with the Portuguese Tax authority after depositing from a crypto exchange.
Reading many people are addressing the most popular concerns like:
” So if you want to come to Portugal to cash out your crypto tax free it aint gonna happen. They will consider you as a professional trader if it is your only income or if it is substantial income. Am I right?”
Reading on the internet (few, non official sources though)
It looks to me that the classification of “professional trader” (for which Crypto tax is not free) may be on a case to case basis.
Also, seems entirely at discretion of the tax officer due to the undefined / broad definition of “professional” classification of a professional trader for the crypto industry.
In this view, if your bigger source of income / bank withdrawal in PT is Crypto ( nearly 100% ! )
the tax office has all the power to send you a large tax bill.
Similarly, if you do it regularly they also have the power to decide you are “professional” therefore to be taxed.
I currently don’t know:
If this is the approach, if the bank will report any income to the tax office or over a certain amount or the interests only.
If the Tax office will request to look any trading records from you of the platform you use, then decide with the above criteria.
Best way forward could be:
Check the recent official font of information
Check personal experiences
Inquire with the Tax office directly
I will try to get some more info as well
I was very surprised to read about the Crypto-Friendly Banks in Portugal. it makes life easy for the bitcoin trader. Also, what do you think about the regulation concerns over cryptocurrencies across the world?
Hi Jean, I read your article about Portugal being the most crypto friendly nation in Europe and Santander as the most friendly crypto bank in the country. Do you know which branch should I open the account at? I talked to a few branches and they said they don’t work with Bitcoin exchanges and the transfers might be blocked. Any information is gladly appreciated!
Try Millenium bank instead and see what they say.
bad experience with Millenium, they block transfers to exchanges. perhaps considering what’s happening at the time i’m writing but nonetheless angry because they don’t let users do what they want with their own capital!
Hi,
Do you need to report crypto income on your Portuguese annual return at all even if non-taxable or can you withdraw the money on an account and never bother telling the Portuguese Tax Authorities?
Hi there,
Thanks for sharing your blog document it’s extremely helpful.
Just reaching out for a bit of help. Myself lives in Australia with my partner I have a British and Australian passport, my partner has Australian and Portuguese.
My question is, we wish to send our crypto to Portugal to binance and then withdraw to her Portuguese bank account.
Do you have any idea if this is possible, Will there be tax implications or is it as easy as it sounds? We wish to leave this there to pay for future trips and our wedding in the future?
Any help would be great.
Cheers. !
Great content, thank you for that! Although, I didnt quite understand how would staking, farming rewards be taxed/not taxed. As I understood it would fall into category E. So is there a tax on that or not?
Also, do you know if you still need to declare transactions that happened during the year, i.e. crypto to crypto, crypto to fiat?
Hi Jean, first of all congrats for the quality of your articles! I’m a crypto retail investor since 2017 and I’m actually worried for the incoming DATF proposals, their impact, and the general clamping down in the crypto world.
Does it make sense for me to evaluate the NHR program in Portugal?
Welcome Luca, and yes I would say it makes a lot of sense. Lots of crypto people are moving to Portugal.
Great blog and information!
We are EU citizens who arrived in Portugal a few months ago and have already set up our NHR status, as we have an overseas company which will pay us dividends, so they are tax free.
As we look to delve more into crypto, would we not be better setting up a crypto company outside of Portugal (eg Malta or Ireland) with very low or zero corporation tax and then pay dividends from that company to ourselves in Portugal?
Just another approach we have been considering?
Thanks!
Yes, that is definitely the way I would recommend doing things. In such a case, you would lock in a guaranteed low taxation rather than depend on the Portuguese law regarding taxation of crypto which is likely to change in the coming years and would probably bump up taxation to 28%.
@Nigel @Jean I was exploring the option of an offshore company as well (Malta, Cyprus, Bulgaria etc.) But most experts told me this would not work as the company would become taxed in Portugal because all “substance” and management is found there.
Do you have a good solution to share?
The safest option seems to be the Unipessoal Limitada, which is tax transparent, hence all profits are taxed at only 20% for 10 years. Overall good deal imo.
@Jean @John
I have been told a little different from speaking to a tax lawyer. Yes there is a risk that if you just have a ‘shelf’ company abroad and manage everything in Portugal, you could be taxed at the 20% (still not bad!) under NHR and PT sourced income, as it is determined that in fact Portugal is the centre of the business.
However to safeguard this if you were questioned on it, you would appoint a local director (I believe that companies offer this as a secretarial service) in the country of incorporation and have the AGM in that country with documented minutes.
On top of this too, you can travel maybe once per quarter / 2 x per year to that country for a meeting or some professional development relevant to your business operation – also showing that the major decisions and professional expertise that runs the company is not in PT.
Just some ideas that could help protect and manage the setup – and what a bummer if you have to go to somewhere like Malta 2-3 times per year!! 😉
Cheers
That is accurate information Nigel, and that’s what happens in practice. Both of you are correct, however, and I even spoke about this issue in my article about the best European tax structures.
Ultimately, from my experience, the vast majority of companies opening up in tax-friendly jurisdictions have little reason to be doing so besides the tax advantages. There are exceptions of course, and sometimes the tax advantages are the initial hook only. Sometimes it’s about the tax advantages plus the legislation (for example the online casino and gambling companies operating in Malta). Keep in mind that most people have almost zero knowledge about countries like Malta, Liechenstein, Cyprus, Luxembourg etc. Throughout the process of research and after getting enticed by the tax law in any of these small or emerging countries (Bulgaria as another example), they might realise that, for example, the quality and cost of labor in such country is really good, and it would make sense for them to relocate part of their operations even if there weren’t any tax advantages in play. This ultimately makes it a big win for medium to big companies as they end up lowering their tax bill as well as also lowering their salary expenditure or improving their operations by such a move.
For smaller players this rarely is the case, especially for solopreneurs who have no need or intention to hire people in the country where they intend to incorporate. This is what John, like many other freelancers and solopreneurs, had in mind. For such cases, ultimately it’s a question of risk tolerance. The theory says that such a setup would not work as the company is actually managed and operated from another country. However, in order to counteract such an eventual argument, the solution is, as Nigel mentioned, to appoint local directors, rent offices, have the AGM in that country, and a host of other steps one can take to improve the looks of the setup. This is an open secret, and as Nigel mentioned, many companies in Malta, Cyprus, etc. actually offer such services (directorships, office space rental, mail management and forwarding, etc). The tax authorities in most countries have a limited budget and the chances of them going after such setups are quite low, in my opinion. They would have to dedicate resources to investigate the resident’s affairs plus his company ownerships in other countries, which is not a very straightforward task. They will be looking at how likely it will be that they will win the fight to relocate the company’s taxation, as well as the potential revenue in terms of extra taxation that their employer (the tax authority) will gain. It doesn’t make sense to go to any trouble for small amounts.
In practice, if you look at real cases, they’re either involving big companies when the “lost” tax revenue runs into the millions, or it’s quite an obvious case. What would be an obvious case? Well, imagine you’re a rich and famous personality and paparazzi are following you around on a daily basis, hence it is easy to understand where you’re really living and operating from. Let’s say that you now decide to open a company in a low-tax jurisdiction to channel some of your revenue from there. If this comes to light, it is likely that the general population will be angered by the move and it becomes a tabloid soap opera, whereby the tax authorities have all the incentives to enter the fray and not only recoup the lost tax but also send the message to the general public that they are doing a great job at curbing tax evasion. There are a number of famous cases of this sort involving the world’s richest and most famous football players, including Ronaldo and Messi. Even then, where one would think the outcome should be obvious, we see tough and protracted cases where the outcome is uncertain. In such cases, the tax authorities have an ace up their sleeve, in the fact that they know that any court appearance (even if the case is unjust) will damage the personality’s reputation, hence they are likely to use that to their advantage to ultimately cut a deal with the accused person, even if they know the chances of them winning the case in court are slim. I’ve seen a particular case of this type, whereby a TV personality was basically bullied into an out-of-court settlement in order to avoid being dragged to court and thus have his TV career cut short.
To recap, we live in a world where very few things are black or white, it’s all about shades of grey and you need to do a lot of independent thinking in order to arrive at the best solution.
Hi Nigel! Which jurisdiction do you recommend for such a crypto company?
Hi John
I am not too sure at this stage, I have been recommended Malta, but have also been looking at Ireland and Estonia for low corporation tax – I just need to explore if they are crypto friendly too.
You also need to check they have a DTA with Portugal and not on the tax haven black list otherwise you will be taxed as if the income was earned in PT.
Malta works fine with Portugal, it’s one of the most commonly used structures with NHR.
Hi – this is a really interesting approach. I have a few questions if I may:
1. In terms of setting up the company *say in Malta) would there have to be a transfer of crypto assets from one personal account to a corporate account, e.g. if held on a exchange, would you set up a new corporate exchange account and transfer all across from your personal exchange account etc? I’m asking this as someone who has been in crypto a few years so would theoretically be quite a lot of moving if that was the case.
2. In terms of dividends payments would you therefore need to convert and withdraw to USD/EUR with a bank in Malta and then transfer funds to a Portuguese account and then due to NHR these are not taxable (only in Malta as corporation tax)?
3.was NHR status easy to get? Do you require to be employed while entering Portugal, or can you get one on your previous roles/skillsets (I am in software development, but may not have employment when moving to Portugal)
Any information would be greatly appreciated.
Regards
Hi Nigel, did you ever go through with this?
Question I have are..
– would you transfer your crypto assets from your personal crypto account and add them as assets to the (for example) Maltese business (new crypto account)?
– Furthermore, would you then not have to also investigate where to get a crypto friendly Maltese bank and then do transfers from it to your portuguese bank.
Looking forward to hearing how you have progressed.
Thanks
For all the people asking and worrying whether they could/might be considered a trader and thus having to pay taxes on crypto: when in Portugal, establish a personal LLC (Unipessoal Limitada, Uni. Lda) and pay yourself minimum wage +-650 euro (no IRS, only social security payments. You now have a main activity, you are not a trader and all gains from crypto are not taxable. For further “insulation”, keep all your crypto and fiat outside of the portuguese banking system, use an account on an exchange or service that provides you with a credit/debit card and an IBAN number.
This could be a bit overkill for most people but yes, in general, this would be a good way to further insulate your argument against being a trader. It also applies to other countries not just Portugal. I would only mention that the exchanges that provide a debit card might charge hefty fees for usage and conversions, so just keep an eye on that.
Mr. Valente comments are wise,
also among leading banks outside Portugal, an account with Revolut is fast to set up and effective, debit card provided if needed.
Thanks for the suggestion Mr. Valente.
So if I have already a NIF in portugal, to avoid crypto tax, I just need to ask portuguese tax lawyer or consultant to make an LLC for me to avoid paying crypto tax?
Is it possible to give some more information on how to make this happen, please?
Kind regards, Arthur
Just go to one of the Empresa Na Hora spots, it should take less than 1 hour.
https://justica.gov.pt/Portals/0/IRN/incorporating-company-guide-LINKS.PDF?ver=2020-01-30-214952-110
Hi Mario, would this minimal amount be enough to not classify you as a trader even though your crypto income is potentially much larger?
Furthermore, are you also saying that if you had a part time job doing whatever, you feel that this would be sufficient to classify yourself as crypto not being your main activity (or do you feel an LLC is required)?
Yes that amount is enought. Just like working as a doctor (for whatever amount) and owning milions in stock of Apple doesnt make you an Apple employee or a professional stock trader.
I wouldnt recomend a part time job as strategy. But if you have a work contract working for someone else or some other company that would be enough, no need for a sole ownership LLC.
Hi Mario
Hope you are well and thanks for the reply, much appreciated. Have you experience of doing this or know others that have? I am just wondering if , for example, you had a job paying minimum wage but traded quite a lot, would they not just see the trading as a second job and therefore subject to tax?