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Portugal - Tax Returns

Learn how to properly report your cryptocurrency earnings in Portugal.

Updated over a month ago

If you’re a crypto investor, trader, or miner living in Portugal, understanding your tax obligations is essential.

This guide outlines the tax declarations you may need to submit when reporting your crypto transactions in Portugal and explains the conditions under which each one applies.


Tax forms that crypto users must file

Depending on your situation, your crypto activity may be subject to various taxes, and should declare them in 2 main tax forms:

  • Modelo IRS3 - for Personal Income Tax

  • DMIS - Stamp Duty


Tax reporting with CryptoBooks reports

CryptoBooks Reports offer a seamless solution for managing your tax documentation, with each report corresponding directly to an annex of the IRS declaration or the Stamp Duty DMIS declaration itself.

These reports come precompiled, thoughtfully organized, and ready to be integrated into your official filings.

By providing this ready-to-use format, CryptoBooks significantly simplifies the process of completing your declarations, ensuring accuracy and efficiency every step of the way.


Modelo IRS3

In Portugal, individual taxpayers must submit their annual income tax return through the Modelo 3 (IRS return). Depending on the type of income, different annexes ("anexos") are required.

ℹ️ Declaration deadline
IRS tax declarations must be submitted between April 1th and June 30th.

Missing the deadline can lead to penalties, interest on unpaid taxes, and delayed refunds. Filing late or not at all increases the risk of fines and possible audits, so it’s important to submit your declarations on time to avoid these issues.

How to declare crypto capital gain transactions

Depending on the activity performed, the duration the crypto assets have been held and the location of the transaction counterparties, different annexes and tables must be used to ensure accurate and compliant reporting for tax purposes, namely:

  • Annex G - Declaration of taxed capital gains performed in Portugal

    • Table 18A: for sale of crypto held less than 365 days with local/EU counterparties

    • Table 18B: for sale of crypto held less than 365 days with counterparties outside EU/EEA/DTA countries

  • Annex G1 - Declaration of tax exempt capital gains from the sale or transfer of assets held for 365 days or more

    • Table 7: for sale of crypto held more than 365 days

  • Annex J - Declaration of foreign assets and investments

    • Table 9.4: for sale of crypto held less than 365 days with local/EU counterparties

Information that you need to declare in Annex G, G1 and J

In the various table of these annexes, you are required to declare every transaction, with each one listed individually on a separate line.

For each transaction you have to declare the following informations:

  • your NIF

  • NIF and country of residence of the platform you used to perform the transaction

  • date of the day you performed the sale

  • date of the day you bought the crypto sold

  • sale value

  • cost of the crypto (the purchase price plus any related fee)

  • country of residence of the counterpart of the transaction

How to declare other crypto incomes

Depending on the activity performed and the residence of the platform where incomes are realized different annexes and tables must be used to ensure accurate and compliant reporting for tax purposes, namely:

  • Annex J - Declaration of foreign assets and investments

    • Table 6A: declare the sum of the staking/mining summing the value of those incoming transactions at the time of receipt

  • Annex B - Reporting of income from business and professional activities, including self-employment and freelance earnings

    • Code 419: Income from Staking summing the value of those incoming transactions at the time of receipt

    • Code 422: Income from Mining summing the value of those incoming transactions at the time of receipt


Stamp Duty (Imposto do Selo)

While Stamp Duty rarely applies to crypto, there are specific situations where it is mandatory:

  • you receive crypto as payment for a service (e.g., brokerage, intermediation), and you pay a fee or commission to crypto service providers: 4% flat tax

  • you receive crypto for free, such as via airdrops, donations, or other non-onerous transfers if the total value exceeds €500 in a given month: 10% flat tax

Filing Intructions

Stamp Duty must be declared using the General Table of Stamp Duty Charges (Tabela Geral do Imposto do Selo).

To declare and pay stamp duty you'll need to provide this informations:

  • period: the year and month of the transaction

  • stamp duty code: use code 30 for commissions or fees paid to crypto service

    providers, or code 1.2 for the free acquisition of crypto assets

  • your NIF: your Portuguese tax identification number

  • circumscription: the region of your residence (C for Mainland, A for Azores, M for Madeira)

  • type of transaction: specify whether you are declaring paid fees or the free receipt of crypto

  • taxable base: the value of the fees paid, or the value of the crypto received for free at the time of receipt

  • amount due: the calculated stamp duty for the transaction. It will be 4% of the taxable base for fees paid to crypto service providers, or 12% of the taxable base for free acquisitions of crypto

Deadlines

Stamp duty must be declared every month following the taxed transaction date and paid by the 20th of that month.

If Stamp Duty is not declared or paid by the 20th of the following month, penalties and interest may be applied, increasing the amount owed. Continued delays can lead to further fines and possible legal action from tax authorities.

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