NHR Program and Cryptocurrency Tax Benefits in Portugal: What’s Still Possible in 2025

Portugal used to be the go-to country for crypto investors looking to avoid taxes. If you held Bitcoin for over a year, you paid zero capital gains tax. If you earned interest from staking or lending crypto, you didn’t pay a cent. And if you moved there under the Non-Habitual Resident (NHR) program, your foreign income - including crypto gains - was completely tax-free. That was the dream. But that dream changed in 2024.

The NHR Program Is Gone - Here’s What Replaced It

The original NHR program ended for new applicants on January 1, 2024. The Portuguese government didn’t just shut it down - they replaced it with something narrower. The new system is called IFICI (Tax Incentive for Scientific Research and Innovation), or NHR 2.0. It’s not a continuation. It’s a different program with stricter rules.

Under the old NHR, you didn’t need to be a scientist or engineer. You just needed to become a tax resident in Portugal and not have lived there in the last five years. That’s it. Now, IFICI only applies to people in specific high-value professions: researchers, tech developers, medical specialists, university professors, and certain qualified professionals. If you’re a full-time crypto trader making €150,000 a year but don’t have a PhD or a job at a tech startup, you don’t qualify.

The only people still getting the old NHR benefits are those who applied and got approved before March 31, 2025. They keep their 10-year tax break until 2035. Everyone else? They’re on the new system - and crypto isn’t automatically included.

Portugal’s Crypto Tax Rules in 2025 (Even Without NHR)

Even if you can’t get NHR, Portugal still has one of the most straightforward crypto tax systems in Europe. Here’s how it works now:

• Long-term gains (held over 365 days): Still tax-free. This is the big one. If you buy Bitcoin in January 2025 and sell it in March 2026, you pay nothing in Portugal.
• Short-term gains (held less than 365 days): Taxed at 28%. This applies to trades, selling crypto for euros, or cashing out stablecoins like USDT or USDC.
• Crypto-to-crypto trades: Not taxed. You can swap Bitcoin for Ethereum without triggering a tax event. This lets you rebalance your portfolio without paying tax.
• Staking, lending, airdrops: Taxed at 28%. These are treated as income, not capital gains. So if you earn 0.5 ETH from staking, you owe 28% on its euro value at the time you received it.

The key strategy? Hold for a year. Convert to a stablecoin like USDC. Then wait until the next calendar year to cash out. That way, you avoid the 28% tax entirely. Many investors use this method - and it’s legal under current rules.

What Changed for Crypto Investors Under IFICI?

The big problem isn’t just that NHR is gone. It’s that IFICI doesn’t mention crypto at all. There are no official guidelines saying crypto traders can qualify. The government’s focus is on scientific research and innovation - not trading.

So if you’re a crypto investor trying to get IFICI status, you have to frame your activity as something else. Maybe you run a blockchain startup. Maybe you’re developing a DeFi protocol. Maybe you teach crypto economics at a university. If you can prove you’re doing one of those things, you might qualify. But if you’re just buying and selling Bitcoin? You’re out of luck.

This has caused real frustration. Reddit users in r/digitalnomad report cases where people made over €100,000 in crypto gains, moved to Portugal, and were denied IFICI because they didn’t have a formal job title matching the approved list. One user wrote: “I made more money from crypto than most engineers here. But I’m not ‘qualified’ because I don’t have a corporate job.”

Who Still Benefits From Portugal’s System?

Not everyone lost. Here’s who still wins:

• Existing NHR holders: If you got approved before March 2025, you keep your 20% flat tax rate on Portuguese income and full exemption on foreign income - including crypto - until 2035.
• High-skilled professionals: Developers, scientists, and researchers who qualify for IFICI can still get the 20% tax rate on Portuguese income. If they hold crypto long-term, they pay zero on gains.
• Long-term crypto holders: Even without NHR or IFICI, anyone who holds crypto for over a year pays no tax on gains. That’s still better than Germany, France, or Spain.
• People with foreign income: Portugal doesn’t tax dividends, interest, or rental income from outside the EU. If you have passive income from abroad, you still don’t pay tax on it - as long as you’re not under IFICI and don’t claim it as Portuguese-sourced.

The real advantage now isn’t the NHR program. It’s the long-term holding rule. Portugal still lets you avoid capital gains tax if you’re patient.

What You Need to Do to Stay Compliant

Getting tax benefits in Portugal isn’t about paperwork. It’s about proof. The Portuguese tax authority (AT) doesn’t ask for much - but they’ll ask for everything if they audit you.

• Track every transaction. Use crypto tax software like Koinly or CryptoTaxAudit. You need timestamps, wallet addresses, and euro values at time of trade.
• Hold for 365+ days. Don’t sell crypto you bought in 2025 until 2026. The moment you cross that line, you’re tax-free.
• File annual tax returns. Even if you owe nothing, you must declare worldwide income. Failure to file can mean losing residency status.
• Prove tax residency. You must spend at least 183 days a year in Portugal, or have strong ties like a rental contract, bank account, or family there.

Americans face an extra hurdle. The IRS doesn’t care about Portugal’s tax rules. If you’re a U.S. citizen, you still owe taxes on crypto gains - no matter where you live. Portugal’s zero tax doesn’t cancel out the IRS. You’ll need to file Form 8949 and pay U.S. capital gains tax. Many U.S. crypto investors are now choosing other countries like the UAE or Singapore because of this.

Is Portugal Still Worth It for Crypto Investors?

Yes - but only if you adjust your expectations.

Portugal isn’t the tax haven it was in 2022. You can’t just move there, trade crypto daily, and pay nothing. But if you’re a long-term holder, or you’re in a qualifying profession, it’s still one of the best places in Europe.

Compare it to Spain: they tax crypto at up to 26% regardless of holding period. France taxes staking and airdrops as income at up to 45%. Germany is tax-free after one year - same as Portugal - but requires you to prove you’re not a professional trader. Portugal’s rules are clearer.

The Golden Visa program still exists. If you invest €500,000 in real estate or €350,000 in renovation projects, you get residency - and you can then apply for IFICI if you qualify. That’s a path for high-net-worth crypto investors who want EU access.

What’s Next? The Future of Crypto Tax in Portugal

Portugal is under pressure from the EU. MiCA, the new EU crypto regulation, went live in July 2025. It requires all member states to standardize how crypto services are licensed - and eventually, how they’re taxed.

The Portuguese Ministry of Finance has said they’ll review crypto tax rules in early 2026. Industry analysts think they might extend the holding period from 365 to 730 days to match EU trends. That would hurt short-term traders but still protect long-term holders.

Deloitte Portugal predicts Portugal will keep its crypto-friendly stance - but only for those who contribute to innovation. They’re not trying to become a crypto paradise anymore. They’re trying to become a tech hub. And crypto investors? They’re now just one piece of that puzzle.

Frequently Asked Questions

Next Steps for Crypto Investors

• If you’re already an NHR holder: Keep your records. Your benefits last until 2035. Don’t risk them by missing tax filings.
• If you’re considering moving to Portugal: Focus on long-term holding. Don’t try to game the system with IFICI unless you’re in a qualifying profession.
• If you’re a U.S. citizen: Talk to a cross-border tax advisor. Portugal’s rules won’t help you avoid IRS taxes.
• If you’re a developer or researcher: Explore IFICI. Combine your work with crypto projects - that’s the new path to tax benefits.

Portugal’s crypto tax system isn’t dead. It’s just evolved. The days of easy tax-free trading are over. But if you’re patient, strategic, and compliant - you can still do very well here.