The 2023 State Budget Law Proposal (“OE 2023 Proposal”) was recently released and states new rules about crypto assets and IRS. The proposal states that any digital representation of value or rights that are able to be transferred or stored electronically is deemed to be crypto-active.

Crypto-assests will now be included in the regime of capital gains (Category G – Equity Increases) and the difference between the realizable value (market value on date of sale) and the acquisition value will determine the gain amount.

An autonomous tax rate of 28% is applied to the positive balance between capital gains and capital losses without prejudice to the option for aggregation. The negative balance calculated in any year can be carried forward for the following five years when the taxable person opts for aggregation.

Gains accrued from the sale of crypto-assets that have been held for longer than one year are exempt from taxation.

Crypto-related activities including mining or validation of crypto-asset transactions are now taxable under Category B (Business and Professional Income) as they are now considered to be commercial and industrial activities.

Free transmission of crypto-assets will incur a stamp duty levied at a rate of 10% when they are deposited in institutions in Portugal. Stamp Duty on commissions and fees charged by the intermediation of crypto-asset service providers will be levied at a rate of 4%.