Hi, it's Thomas from Crypto & Taxes Portugal. As 2024 wraps, we're sharing what we learned in the first year Portugal required taxpayers to report crypto income (beyond capital gains and interest) on IRS filings for the 2023 tax year — plus how to prepare smartly for 2025.
Crypto Income & the Category B Activity-Code Gap
In Portugal, crypto income other than capital gains and interest is treated as professional income and declared personally under Category B (Recibos Verdes).
The snag
Tax authorities still haven't assigned specific activity codes for crypto professions. This ambiguity created friction for filers and led to audits in some cases — it remains an open issue heading into the 2025 filing season.
What Audits Looked Like — and What Worked
Some clients received Divergência notices after declaring crypto activity income and were asked to provide screenshots of transactions within 15 business days — with little clarity on exactly which screenshots were required.
What worked
Our approach was to send a guided letter explaining exactly what was declared and clarifying discrepancies. After some back-and-forth, the authorities accepted the declarations without further scrutiny of the screenshots. A clear, proactive explanation consistently outperformed waiting for follow-up questions.
Year-End Checklist — Finish 2024 on the Right Note
Create an overview of taxable transactions
Identify crypto sold for fiat, purchases made with crypto debit cards, and goods or services paid with crypto.
Use crypto tax software
Many tools offer free features to consolidate cross-chain data, filter crypto→fiat transactions, and track purchase dates and values of disposed assets.
Review your e-Fatura
Check deductions in the portal and confirm categories. The confirmation deadline is usually end of February.
What's Next: IRS 2024 Timeline
IRS 2024 filing window: April – June 2025
The IRS 2024 return must be filed between April and June 2025. We'll keep sharing best practices as rules and tooling evolve.
"2024 taught us a lot — especially around handling income classification and audit requests. Let's navigate the next season smoothly together."
— Thomas Maas
Get Help for 2025
If you want help organising data, drafting audit responses, or preparing your 2024 records, reach out.