Summary
- Portugal is one of the world’s most crypto-friendly countries, and has become a hub for young crypto enthusiasts, with visa support for digital nomads.
- The country will align its legislation with the EU’s Markets in Crypto-Assets (MiCA) bill during 2026, which will further clarify its legal and policy line towards the sector.
- The outlook for continued crypto adoption is strong, with Portugal expected to expand its capabilities in specific sectors, such as decentralized finance (DeFi).
The lure of Portugal for the crypto community
Portugal ranks 45th globally in terms of crypto adoption, but when adjusted relative to population, this jumps to 20th. Factors driving this adoption include generous crypto taxation status, and a high concentration of digital nomads attracted by the government’s pro-digital visa schemes.
Regarding crypto usage, Bitcoin is the most-used cryptocurrency, but other coins, including Ethereum, Solana and Ripple, are popular too. The most used exchanges include Coinbase, Binance, and Kraken, and growing in popularity are crypto cards and tools such as Bleap or Oobit, which are legal and convert crypto into Euros at the point of payment.
A 2024 study by research and analytics firm, YouGov, and investment company, BlackRock revealed that 43% of Portuguese investors held digital assets, almost twice the European average.
Crypto has become popular, especially for expatriates in Portugal partly due to the difficulties in accessing the country’s traditional financing infrastructure on arrival. The situation also belies the fact that freelancers and those working in fintech may receive all or part of their wages in crypto, with Portugal’s taxation laws notably favorable towards crypto.
How is crypto used in Portugal?
There is a lot of positive press about crypto attitudes in Portugal, but the central bank, Banco de Portugal (BdP), notes the associated risks in detail on its website. It states that virtual assets are not considered legal tender in Portugal, should not be regarded as “real money”, and cites that there is no legal protection guaranteeing the rights of redemption for invested funds.
Yet, the authorities have been content to allow the crypto and blockchain sectors to develop, supporting new applications of their usage in the economy.
One such area is real estate tokenization. Officials announced in 2024 that buying property in Portugal with crypto was legal in certain cases. In 2025, 3-5% of property listings in Europe accepted crypto payments, with Spain, followed by Portugal, leading the bloc in this respect.
There are a growing number of businesses and specific companies, including football club, SL Benfica, that accept crypto payments, further normalizing their use.
Portugal’s digital transformation
In 2020, the authorities unveiled an Action Plan for Digital Transition. This 12-point plan focuses on three broad areas – capacity building and digital inclusion, the digital transformation of business, and the state’s digitalization – designed to support the economy’s digital transition.
The program established free zones and regulatory sandboxes for the testing of crypto technology. It was also designed to reduce the regulatory and legal burden on the sector as it experimented with new technologies. Additionally, Portugal Finlab was created to support innovators looking to help develop the country’s fintech sector by giving them a channel of communication to the country’s regulators.
Alongside this, a national blockchain strategy is currently being developed, aiming to meet the country’s wider digital transition goals and align with developments in the EU.
The authorities’ attitude towards crypto
The government and regulators have been consistent in supporting crypto’s development. Historically, the authorities have only regulated for anti-money laundering (AML) purposes, which has allowed the sector to grow organically.
Taxation policies are some of the most crypto-friendly in the world, and include:
- Assets held more than 365 days are exempt from capital gains.
- Short-term gains are, however, taxed at 28%.
- Also taxed at 28% are activities like staking and lending.
- Under the Non-Habitual Resident (NHR) program (there was a cutoff for this in March 2025), most foreign-sourced crypto income is exempt from taxation. Domestic-sourced crypto income is taxed at 20%.
- The self-employed who trade, mine or earn crypto in a professional capacity are taxed at between 14.5% and 53%.
- Reflecting the authorities’ long-held view that crypto is currency, it is exempt from value-added taxation (VAT).
Most recently, in December 2025, parliament approved a bill that incorporates MiCA’s rules into national law, with provisions coming into effect in July 2026. This will boost the supervision of crypto asset service providers and divide supervisory responsibilities between the BdP and the country’s Securities Market Commission (CMVM).
This positions the BdP as the supervisor that will handle applications for authorization from crypto asset service providers. It will notify the CMVM of these within two working days, and if the regulator sees any reason not to offer a favorable decision, it will send its justifications to the bank.
For its part, the central bank will notify the CMVM of authorization acts, and provide information about any crypto asset service provider seeking to operate in more than one EU country. Both supervisory agencies will also work directly with their EU counterparts.
Legislative and other crypto developments
2013
The BdP warned that Bitcoin was not a safe currency over fears of its issuance and lacking oversight.
2019
The Portuguese Tax and Customs Authority (PTA) declared that crypto transactions (purchase and sale) would be tax free.
2020
In April, the government passed the Digital Transitional Action Plan, establishing free zones where crypto technology could be tested.
2020
In 2017, Law No. 83/2017 established measures to combat money laundering and terrorism financing, partially transposing EU directives on the subject. Three years later, it was amended (Law No. 58/2020) to bring virtual asset activities under the scope of AML laws.
2022
The authorities stated that real estate purchases could be made directly in crypto. In a landmark sale, an apartment in Braga was bought with 3 Bitcoin.
2023
The country introduced taxation on short-term capital gains from crypto transactions.
2025
In November, Brazil’s crypto exchange, Mercado Bitcoin, continued its expansion into the Portuguese (and European) markets, with a €50 million investment. The exchange, already licensed and operating in Portugal, is seeking to boost product development and deepen integration between the Brazilian and Portuguese financial markets.
A month later, parliament adopted MiCA’s provisions into Portuguese law in Law No. 69/2025, including Transfer of Funds Regulation (TFR) in Law No. 70/2025.
At the same time, parliament voted on and approved a bill that amends the country’s anti-money laundering legislation. As a result, crypto asset service providers based in Portugal are now regarded as financial entities.
2026
In January, the country’s first crypto bank, Bison Bank, announced a strategy that included the development of its real-world asset (RWA) tokenization capabilities, and the launch of its own (and the first Portuguese) stablecoin in the coming year.
Outlook
The outlook for continued crypto adoption and blockchain development in Portugal is positive. If anything, following the alignment of MiCA provisions with Portuguese law, the country is likely to shift from being seen as something of a crypto haven to a regulated crypto hub.
The authorities have shown a consistent and strong interest in developing the sector as part of wider digitalization efforts, and there are no signs their attitude will change. As the country’s digitalization foundations embed, activity is likely in many different sectors, from DeFi to RWA tokenization.
