When you earn rewards from crypto staking, the process of locking up cryptocurrency to support a blockchain network and earning interest in return. Also known as proof-of-stake rewards, it’s one of the most popular ways to make passive income in crypto. But in Portugal, the rules are simple: staking rewards are not taxed as long as they’re not part of a business activity. That’s right—unlike most countries, Portugal doesn’t treat staking income as taxable income for individuals.
This makes Portugal one of the few European countries where holding and staking crypto can be truly tax-efficient. The Portuguese tax authority, Autoridade Tributária e Aduaneira, classifies crypto as an asset, not currency. That means capital gains from selling crypto are taxed only if you’re a professional trader. For regular users, buying, holding, or staking crypto doesn’t trigger a tax event. But here’s the catch: if you’re running a staking operation as a business—with multiple wallets, automated tools, or employees—you might be classified as a professional, and then things change. Also, if you trade your staked tokens for other crypto or fiat, that sale could trigger capital gains tax. The key is keeping clear records: when you bought, when you staked, and when you sold.
Related entities like crypto taxation Portugal, how the Portuguese government treats digital assets under personal income tax law and crypto reporting Portugal, the minimal disclosure requirements for individuals holding crypto are equally important. You don’t need to file a tax return just for staking, but if you have over €80,000 in foreign assets (including crypto), you must declare them on Form 44. Failure to do so can lead to fines, even if no tax is owed. And while staking rewards themselves are tax-free, if you earn them in a foreign exchange or DeFi protocol, you still need to track their value in euros at the time of receipt—just in case you later sell or swap them.
What about NFTs, airdrops, or DeFi yields? Those are different. Airdrops and DeFi rewards are treated as income if received in exchange for services or liquidity provision. But plain staking on Ethereum, Polkadot, or Solana? Still tax-free. That’s why so many crypto holders in Europe are moving their assets—or even relocating—to Portugal. It’s not a loophole. It’s the law. And it’s been stable since 2019.
In the posts below, you’ll find real-world examples of how staking works on platforms like StellaSwap, ShadowSwap, and PancakeSwap—and how those rewards fit into Portugal’s tax framework. No theory. No guesswork. Just what you need to know before you stake your next coin.
Portugal's crypto tax rules changed in 2023. Learn how short-term gains are taxed at 28%, long-term holds are still tax-free, and what changes are expected in 2025. Stay compliant and avoid penalties.