Bitcoin in Portugal: Legal Status, the 365-Day Rule and the Right to Self-Custody

Bitcoin is legal to own, buy, sell and self-custody in Portugal, but it is not legal tender. As of October 22, 2026, the Personal Income Tax Code taxes gains on Bitcoin held for less than 365 days at 28% and excludes gains on Bitcoin held for 365 days or more, subject to a residence condition. Businesses that exchange or hold Bitcoin for others need an authorization under the EU's Markets in Crypto-Assets Regulation (MiCA).

Translations of Portuguese legal texts in this guide are my own.

Yes. No Portuguese statute prohibits an individual from owning or trading Bitcoin. The law taxes Bitcoin gains and licenses the businesses that serve Bitcoin users.

No. Legal tender is money that a creditor must accept in payment of a debt. Portugal uses the euro, and under Article 10 of Council Regulation (EC) No 974/98, euro banknotes are "the only banknotes which have the status of legal tender" in the participating Member States. Article 11 says the same for euro coins.

A crypto-asset [criptoativo] is "any digital representation of value or rights" that can be transferred or stored electronically using distributed ledger or similar technology, under Article 10(20) of the Personal Income Tax Code. Bitcoin fits that definition. Article 10(21) excludes crypto-assets that are unique and not fungible with others.

Many older guides cite these rules as Article 10(17) to 10(22). The Tax Authority's consolidated text shows that Decree-Law 97/2026 of May 20, 2026, a housing measure, renumbered them as Article 10(20) to 10(25).

No. MiCA, and Law 69/2025 which implements it in Portugal, regulate businesses that provide crypto-asset services to others. Holding or self-custodying your own Bitcoin is not a service provided to anyone.

The Banco de Portugal and the CMVM share the work. Under Article 2 of Law 69/2025, the Banco de Portugal is the competent authority for the parts of MiCA that govern crypto-asset service providers. The CMVM covers offers of crypto-assets and market abuse. Article 4 makes the Banco de Portugal the contact point for service providers.

MiCA is an EU regulation, so it binds directly in Portugal. Law 69/2025 supplies the national pieces: which authority does what, how the two cooperate, and the sanctions.

Their transition is over. Before MiCA, Bitcoin businesses registered with the Banco de Portugal under Article 112-A of Law 83/2017, the anti-money laundering law.

Under Article 30 of Law 69/2025, a registered entity that had started and notified its activity by December 30, 2024 could continue until July 1, 2026, or until its MiCA authorization was granted or refused, whichever came first. Registrations of entities that had not started activity by then lapsed on December 30, 2024. Without a MiCA authorization, an entity whose registration has lapsed may not carry on virtual asset activities.

They are heavy, and they reach individuals as well as companies. Under Law 69/2025, fines for very serious offenses run from €25,000 to €5,000,000 for legal persons and from €4,000 to €5,000,000 for individuals. Ancillary sanctions include bans on holding management positions.

They bind your provider, not your wallet. The EU's Transfer of Funds Regulation, Regulation (EU) 2023/1113, has applied directly in Portugal since December 30, 2024 under its Article 40.

Article 3(20) defines a self-hosted address as a distributed ledger address not linked to a crypto-asset service provider, or to a similar entity established outside the EU.

When you withdraw to a self-hosted address, Article 14(5) requires your provider to obtain and hold the transfer information. For a transfer "of an amount exceeding EUR 1 000," the provider "shall take adequate measures to assess whether that address is owned or controlled by the originator." Article 16(2) applies the same test to deposits from a self-hosted address.

In practice, moving sats from a platform to your own wallet can lead to a request to prove that the wallet is yours. Nothing in the Regulation stops an individual from holding Bitcoin in a self-hosted wallet.

Bitcoin gains are taxed as capital gains [mais-valias], at a special rate of 28%, unless the Bitcoin was held for 365 days or more. Under Article 10(4)(a) of the Personal Income Tax Code, the gain is the difference between the sale value and the acquisition value.

The rate is 28%. Article 72(1)(c) applies it to "the positive balance between capital gains and losses" from operations that include crypto-asset sales under Article 10(1)(k).

Residents can choose otherwise. Under Article 72(13), holders "resident in Portuguese territory" may opt for aggregation [englobamento], which adds the gain to their other income and taxes it at the progressive rates. The Tax Authority's leaflet on crypto-assets confirms that this option covers crypto-asset gains.

Yes, if the residence condition is met. Article 10(22) excludes "the gains obtained, as well as the losses incurred" on crypto-assets "held for a period equal to or greater than 365 days." Because losses are excluded too, a loss on long-held Bitcoin cannot offset other gains.

The Tax Authority's leaflet states that holding periods for assets acquired before January 1, 2023 count toward the 365 days.

The residence condition sits in Article 10(24). It withholds the benefit where the taxpayer receiving the income, or the person paying it, is not resident for tax purposes in the EU, the European Economic Area, or a state with a tax treaty or a tax information exchange agreement in force with Portugal. The paragraph still refers to the exclusion and the swap rule by their pre-2026 numbers. A Tax Authority binding ruling of December 13, 2023 (process 21506) describes the same condition.

A binding ruling [informação vinculativa] is the Tax Authority's written answer to a taxpayer's request about a specific situation. In a binding ruling of January 22, 2025 (process 23162), it concluded that a private individual's 2022 Bitcoin sales were not taxable as capital gains, because no charging rule existed then.

Not at the moment of the swap. Under Article 10(23), where the 365-day exclusion does not apply and the consideration "takes the form of crypto-assets, there is no taxation." The crypto-assets received take "the acquisition value of the crypto-assets delivered."

The leaflet explains that tax arises when the crypto-assets are later sold for money, or for anything other than crypto-assets. The residence condition in Article 10(24) applies here as well.

Mining is a business activity. Article 4(1)(o) lists operations related to the issuance of crypto-assets, "including mining," and the validation of transactions "through consensus mechanisms" as commercial activities taxed under Category B. The leaflet states that, under the simplified regime, 95% of mining income is taxable.

Other rewards fall under capital income. Article 5(2)(u) covers "any form of remuneration arising from operations relating to crypto-assets" as Category E. Under Article 5(11), when that remuneration is paid in crypto-assets, it is taxed as a capital gain when the crypto-assets received are sold.

Being paid in Bitcoin for your work is income in kind. The 2023 binding ruling treats Bitcoin received by a self-employed person as payment for the service.

Leaving is treated as a sale. Under Article 10(25), "the loss of the status of resident in Portuguese territory is equated to an onerous disposal" of crypto-assets. The leaflet states that the gain is measured at market value on the date residence changes.

Yes, when you sell. The Tax Authority's leaflet places taxable crypto-asset gains in Annex G of the annual income tax return (Modelo 3), and gains excluded under the 365-day rule in Annex G1.

Your platform reports too. Under Article 124-A of the Personal Income Tax Code, as amended by Law 26/2026, reporting crypto-asset service providers must send the Tax Authority information on users resident in Portugal "by May 31 of each year," covering "the previous calendar year."

Law 26/2026 transposes Directive (EU) 2023/2226, known as DAC8, which brings crypto-assets into the EU's automatic exchange of tax information. The first period covered is the calendar year starting on or after January 1, 2026. Users with a provider relationship on December 31, 2025 count as pre-existing users.

Yes, in two cases. Stamp duty [Imposto do Selo] is a separate tax on certain documents, contracts and transfers.

The first case is fees. Item 30 of the General Stamp Duty Table, added by Law 24-D/2022, charges 4% on "commissions and consideration charged by or through the intermediation of crypto-asset service providers." Under Article 4(9) of the Stamp Duty Code, it is due when the provider or its client is domiciled in Portugal.

The second case is gifts and inheritances. Item 1.2 of the table charges 10% on the gratuitous acquisition of assets.

Article 4(4)(e) of the Stamp Duty Code decides when Bitcoin counts as located in Portugal. Bitcoin deposited with an institution that has its seat, effective management or a permanent establishment in Portugal is located there.

Bitcoin that is not deposited, such as coins in self-custody, follows the person. For an inheritance, it is located in Portugal when the deceased was domiciled there. For a gift, it is located in Portugal when the beneficiary is domiciled there.

Close family is exempt. Under Article 6(1)(e) of the Stamp Duty Code, the spouse or de facto partner, descendants and ascendants are exempt from stamp duty on gratuitous transfers under item 1.2.

The 2027 State Budget is pending. The Council of Ministers approved the budget bill on October 8, 2026, and it is before Parliament as Proposta de Lei n.º 110/XVII/2.ª. A bill has no legal effect until Parliament passes it and it is published in the Official Gazette.

The two big EU projects are no longer pending. MiCA operates in Portugal through Law 69/2025, and DAC8 through Law 26/2026.

Portuguese law allows self-custody without restriction. None of the instruments cited in this guide requires an individual to register a wallet, obtain a license or ask permission to hold their own keys.

The obligations fall on providers: MiCA authorization, ownership checks on self-hosted addresses above €1,000, and annual DAC8 reporting. A withdrawal from a platform to your own wallet leaves a record at the platform.

The practical risks are your own:

Residence decides almost everything. The 365-day exclusion and the swap rule depend on the residence condition in Article 10(24), and the aggregation option in Article 72(13) is open only to residents.

A new resident arriving with Bitcoin should keep proof of acquisition dates and costs, because both drive the result on sale. A resident who later leaves faces Article 10(25), which treats departure as a sale.

For stamp duty, Article 4(5) of the Stamp Duty Code treats as domiciled in Portugal the persons who count as residents under Article 16 of the Personal Income Tax Code. Becoming a Portuguese tax resident can therefore bring a gift or inheritance of self-custodied Bitcoin within the tax.

Yes. Owning, buying, selling and self-custodying Bitcoin is legal. Portugal taxes Bitcoin gains under the Personal Income Tax Code and requires businesses serving Bitcoin users to hold a MiCA authorization under Law 69/2025. Bitcoin is not legal tender, because only euro banknotes and coins have that status.

Only after 365 days. Article 10(22) excludes gains and losses on crypto-assets held for 365 days or more, subject to the residence condition in Article 10(24). Gains on Bitcoin held for a shorter period are taxed at 28%, unless a resident chooses aggregation with other income.

The rate is 28%. Article 72(1)(c) applies it to the positive balance of capital gains and losses, including Bitcoin sales. Residents may instead aggregate the gain with other income and pay the progressive rates. Mining is taxed separately, as business income under Category B.

Not at the moment of the swap. Under Article 10(23), no tax applies when the consideration is another crypto-asset, and the asset received keeps the original acquisition value. Tax arises when you later sell for euros or for anything that is not a crypto-asset.

Yes, when you sell. The Tax Authority's leaflet places taxable gains in Annex G of the annual return and gains excluded after 365 days in Annex G1. Platforms also report Portuguese users to the Tax Authority by May 31 each year under Law 26/2026.

No. MiCA and Law 69/2025 require authorization only for businesses that provide crypto-asset services to others. Holding Bitcoin for yourself, on a platform or in self-custody, needs no license. The Banco de Portugal supervises service providers, and the CMVM covers offers and market abuse.

Yes, outside close family. Item 1.2 of the General Stamp Duty Table charges 10% on gratuitous acquisitions. A spouse or de facto partner, descendants and ascendants are exempt under Article 6(1)(e) of the Stamp Duty Code. Self-custodied Bitcoin follows the domicile of the deceased or beneficiary.

This article is general information and not legal advice.

Portugal is one of more than 140 countries on The Bitcoin Act's interactive Global Bitcoin Regulatory Map. Compare its rules on legality, self-custody and tax with other countries here: https://thebitcoinact.xyz/bitcoin-legal-map

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