Tax guy 🇵🇹@cryptaxpt
⚡️What Triggers a Taxable Event for Crypto Capital Gains in Portugal?💰🇵🇹
A taxable event refers to an action that must be reported to authorities, which is not the same as owing taxes. Losses and crypto capital gains that are held longer than 365-days have to be reported but in most cases won´t be taxed.
In Portugal, there are 3 main scenarios that trigger a taxable event for crypto capital gains:
1⃣Selling Crypto for Fiat Currency
This is the most common scenario. If you bought cryptocurrency in the past and later sell it for fiat currency (e.g., euros, dollars or any other), it’s a taxable event.
- Held for less than 365 days: Profits are taxed at 28%.
- Held for more than 365 days: Profits are tax-free.
2⃣Using a Crypto Debit Card
Using a crypto debit card triggers a taxable event differently from a crypto credit card. When you use a debit card, the card provider sells your crypto on your behalf to pay for the transaction. You’re responsible for reporting and paying any capital gains on those sales.
💳With a credit card, the taxable event happens when you repay the credit using crypto, not at the time of purchase.
3⃣Buying Goods or Services with Crypto
When you use crypto directly to purchase goods or services, it’s treated like selling your crypto.
For example, if you use
$BTC
to make a down payment on a Lamborghini, it’s taxed as though you sold your
$BTC
for euros to buy the car. This transaction must be reported to the Portuguese authorities.
📩If you have any questions, feel free to drop them in the comments below, and I’ll do my best to help!
