Crypto Taxes: The 1-Year Rule

Portugal is no longer a tax-free haven for short-term crypto trading. Gains from assets held for less than 365 days are taxed at a flat rate of 28%. However, if you hold the asset for more than a year, the profit remains tax-exempt.

You must declare all crypto operations in your annual IRS statement (Annex G), even if no tax is due. Failure to report these holdings can trigger audits, as exchanges now share data with the Tax Authority.