Portugal has been known as one of the countries in Europe that had not yet regulated Cryptocurrencies. Now this might change. The Portuguese Minister of Finance, Fernando Medina, stated that Portugal will adapt legislation and taxation on cryptocurrencies. The minister did not commit to any date but assured that he will create a system for adequate taxation, guided by the principle of justice and efficiency.
"Several countries already have systems in place to tax cryptocurrencies. We have to build our own", Fernando Medina said.
Later, at the same hearing, the Secretary of State for Tax Affairs, Antonio Mendonca Mendes, explained that he is "evaluating from the international comparability point of view, what is considered a crypto asset", given that there is no definition of the concept at an international level.
The left wing proposes that returns on cryptocurrencies capital gains should be taxed in IRS (Income taxes) just like other capital gains.
For the residents that acquired NHR, tax wise nothing changed. Holding the NHR status means that for 10 years, your incomes from abroad are not taxable in Portugal. This means that if your cryptocurrencies incomes come from abroad, they won´t be taxed in Portugal under NHR. I would recommend you to always check the convention between Portugal and the country of origin related to the cryptocurrency gains. These conventions, as of today, do not state "cryptocurrencies", but this might change in the upcoming years. If you have more questions regarding your personal situation do not hesitate to contact us.