Crypto

Crypto

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Crypto in Portugal

Crypto assets represent values or rights in digital format that can be transferred and stored electronically. Although they can be used to make payments, due to their volatility, they are primarily adopted as investment assets.

The most common crypto assets in the current market include:

  • Cryptocurrencies (or virtual currencies): These are digital currencies used for purchasing products and services or for exchanging for conventional currency. They also serve speculative and investment purposes. Among the most recognized cryptocurrencies are Bitcoin, Ether, Ripple, and Litecoin.
  • NFTs (non-fungible tokens): These digital assets represent both tangible and intangible goods, such as artworks, music, elements of video games, and real estate. NFTs are traded online, usually through cryptocurrencies.
  • Stablecoins: Created to provide greater stability compared to other cryptocurrencies, stablecoins combine the security of blockchain technology with the stability of conventional currencies. These may be linked to fiat currencies, precious metals, or other commodities.

 

Regarding taxation, as of January 1, 2023, with the entry into force of the State Budget for the same year (Law No. 24-D/2022, December 30), a new taxation regime for crypto assets in Portugal was established, as detailed in this leaflet. However, it is important to consult the applicable legislation for a complete understanding.

Frequently Asked Questions

As a part of its effort to attract foreigners, Portugal introduced the “Non Habitual Residency” tax regime and this regime encompasses a number of tax exemptions and privileges and its main aim is to provide an opportunity to optimise taxes.