Capital gains on shares, ETFs and crypto in Portugal
Sold shares, ETFs or crypto at a profit in Portugal? Capital gains are generally taxed at 28%, but crypto held for a year or more is excluded, short-term gains may have to be aggregated, and for lower earners aggregating can be cheaper. Here are the rules and the numbers.
What counts as a capital gain
The difference between the sale price and the purchase price, minus necessary costs such as broker fees. It is category G income and only taxed when you sell — unrealised growth is not taxed. With several purchases of the same security, the oldest units are deemed sold first (FIFO). With a foreign broker, you work out every figure yourself from the trade confirmations, so keep them.
Rates at a glance
| Income | Default | Alternative |
|---|---|---|
| Gains on shares, ETFs, bonds | 28% on the yearly net balance | Optional aggregation |
| Gains on assets held < 365 days | 28% | Mandatory aggregation if taxable income reaches the top bracket |
| Dividends | 28% (withheld in Portugal) | Aggregation at 50% (EU/EEA companies) |
| Interest | 28% (withheld in Portugal) | Optional aggregation |
| Crypto held ≥ 365 days | Excluded | — |
| Crypto held < 365 days | 28% | Aggregation (short-term rules) |
28% or aggregation
By default the year's net gain (gains minus losses) pays a flat 28%. You may instead aggregate it with your other income and pay the progressive IRS brackets; the choice covers all income in the category. It pays off when your marginal rate is below 28%. Since 2023, net gains on assets held under 365 days must be aggregated if your taxable income, including them, reaches the top bracket (above €86,634 in 2026).
Dividends and interest
Portuguese-paid dividends and interest have 28% withheld as a final tax. If you opt to aggregate, dividends from Portuguese or EU/EEA companies count at only 50% (art. 40.º-A). Foreign-paid income (e.g. US shares at a foreign broker) goes in Annex J and pays 28% on assessment, with credit for foreign tax under the relevant treaty.
Crypto
Gains and losses on crypto held 365 days or more are excluded from tax but must still be reported (Annex G1). Held for less, the gain is taxed at 28% or aggregated. Crypto-to-crypto swaps are not taxed at the time; the new coin inherits the original acquisition value. Mining or being paid in crypto is business income (category B), not a capital gain.
Losses
Losses offset gains in the same year. A net loss can be carried forward for 5 years only if you opt for (or are required to use) aggregation in the year of the loss and in the years you use it.
Worked example
Single, no dependants, €3,000 gain on an accumulating ETF held for three years. Figures from the fisco.pt IRS calculator:
| Gross salary | At 28% | Aggregated | Better |
|---|---|---|---|
| €20,000 | €840.00 | €637.67 | Aggregate |
| €45,000 | €840.00 | €1,038.00 | 28% rate |
On a €20,000 salary the gain falls into marginal rates of 20.7% and 23.6%, below 28%, so aggregating saves €202.33; on €45,000 it would be taxed at 34.6%, so the flat rate wins. Short-term trading at the top is costlier: someone earning €100,000 with a €5,000 gain on shares held for six months must aggregate, and the calculator puts the tax at €2,525 (48% plus the 2.5% solidarity surcharge) instead of €1,400.
With a €20,000 salary, €1,000 of Portuguese dividends cost €280 at source but only €103.50 if aggregated — the difference comes back in your refund.
Common mistakes
- Not declaring sales at foreign brokers — the tax office receives data through automatic exchange of information.
- Ignoring fees, which reduce the gain.
- Skipping a loss year — without filing and aggregating, the carry-forward is lost.
- Assuming all crypto is tax-free — only after 365 days.
- Mixing up ETF types — distributing ETFs pay taxable dividends every year; accumulating ETFs are only taxed when you sell.
FAQ
Do I declare shares I did not sell?
No. Only sales, plus dividends or interest received from abroad.
Which annex do I use?
Annex G for Portuguese brokers and short-term crypto, G1 for crypto held 365+ days, Annex J for foreign-source income.
Does IRS Jovem cover capital gains?
No, it only covers work income. See IRS Jovem.
I am a foreign resident — do these rules apply?
Yes, if you are Portuguese tax resident. See Portugal tax for foreigners.
Run the numbers with your own figures
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