Between April 1 and June 30, 2024, Portugal kicks off its first full crypto tax season for IRS 2023. This guide explains what changed and exactly how to report DeFi rewards, long-term gains, and mining income — plus what to expect after you file and how to pay, even from abroad.
Filing Window & Payment Timeline
Filing window
Apr 1 – Jun 30, 2024
Notice timeline
~2–3 months after filing
Payment options
Full or monthly instalments
After submitting, you'll receive both a physical letter and a digital notice in the Portal das Finanças with the amount due. Interest may apply to instalments. You may also pay from a foreign bank account if you don't have a Portuguese one.
How to Declare DeFi Cash-Outs (Category B)
If you're a full-time crypto trader or cashed out DeFi rewards in 2023, declare them under Category B. Use activity code:
Activity code for IRS 2023
419 – Income from crypto operations
Note: the specific code the government first requested was not yet created for IRS 2023.
Applies to
- Airdrops
- Play-to-earn income
- LP (liquidity provider) rewards
- Staking fee distributions
- NFT staking income
Deductible costs
Applicable up to €200,000 declared.
Reporting Realized Long-Term Gains (>365 Days)
Important — even exempt gains must be reported
Gains on assets held longer than 365 days are not taxed, but you must still declare them on your IRS return.
For each such disposal, provide:
Date of sale
Sale amount
Date of purchase
Purchase amount
All costs and fees
Counterparty country
Declaring Mining Income (Proof-of-Work)
Activity code for mining
422 – Income from mining
95%
of declared amount is taxable
5%
treated as costs
The high taxable percentage reflects the government's view of Proof-of-Work's environmental impact.
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