Portugal's New Crypto Tax Rules: Platforms Face Fines Up to 22,500 Euros for Failing to Report to the Tax Authority

Portugal's reputation as a crypto-friendly jurisdiction has been fading for some time. The latest signal came this week, when the government submitted a bill to parliament that would impose mandatory annual reporting requirements on cryptocurrency platforms and fine them up to 22,500 euros for failing to comply.

The proposed law, now before the Assembleia da República for debate, would require all crypto-asset service providers operating in Portugal to report detailed user information to the Autoridade Tributária e Aduaneira (AT), the country's tax authority. The data would include user identification, tax residency, transaction volumes and the types of operations carried out.

The fines at a glance

The government's proposal introduces a tiered penalty system. A platform that fails to file its reporting obligation entirely faces fines of between 2,000 and 22,500 euros. Late filing carries penalties of 1,000 to 22,500 euros. Even inaccurate, incomplete or erroneous reports would not escape sanction, with fines ranging from 500 to 11,250 euros.

The bill is explicit that each omission or inaccuracy is treated as a separate infraction, signalling the government's intent to hold platforms to a strict standard of data quality.

What platforms must do

Beyond the act of reporting, the legislation would require crypto platforms to implement "due diligence procedures" to verify the identity and tax residency of their users. The government's explanatory notes describe this as essential for "ensuring the reliability of reported information and the effectiveness of the tax control system."

Reports would be due annually by 31 May, covering the previous year's operations, and must be submitted electronically in formats yet to be defined by ministerial order. The data collected would also be shared automatically with other EU member states and jurisdictions with which Portugal has tax cooperation agreements — a mechanism the government says will help "detect non-compliance and correctly apply tax rules" at an international level.

The end of Portugal's crypto haven image

Portugal was once considered one of the most attractive destinations in Europe for cryptocurrency investors. Until 2023, capital gains from crypto trading were entirely tax-free for individuals, a policy that drew thousands of digital nomads and fintech entrepreneurs to Lisbon and Porto.

That changed with the 2023 budget, which introduced a 28 percent capital gains tax on crypto assets held for less than a year. The current proposal takes the regulatory framework further by targeting the platforms themselves, aligning Portugal with the EU's Crypto-Asset Reporting Framework (CARF) and the broader push by the OECD for global tax transparency on digital assets.

For digital nomads and tech workers who moved to Portugal partly for its light-touch approach to crypto, the new rules represent another shift in the regulatory landscape. Combined with tighter tax enforcement during this year's IRS season and ongoing changes to the golden visa programme, the message from Lisbon is clear: Portugal wants to remain competitive, but not at the expense of fiscal oversight.

What happens next

The bill must now pass through parliamentary committee review and a full vote in the Assembleia da República. Given that it aligns with EU directives on tax transparency, cross-party opposition is considered unlikely, though the exact timeline for approval and implementation remains open. (Background: see our piece on the Portugal's first bank-issued stablecoin.)

For crypto investors and platforms already operating in Portugal, the practical advice is straightforward: prepare reporting systems now. The government has made clear that non-compliance will be treated as a distinct, punishable offence — and at up to 22,500 euros per infraction, the cost of ignoring the new rules could add up quickly.