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

Portugal used to be the go-to country in Europe for crypto investors looking to avoid taxes. If you held Bitcoin or Ethereum for more than a year, you paid zero capital gains tax. If you earned staking rewards or airdrops, you paid just 28%. And if you were a foreign resident under the Non-Habitual Resident (NHR) program, you could pay only 20% on Portuguese income - and nothing on foreign income, including crypto gains. That was the deal. But that deal is gone.

The NHR Program Ended for New Applicants in 2025

The original NHR program, launched in 2009, gave foreign residents a 10-year tax holiday. It didn’t matter if you were a remote worker, retiree, or full-time crypto trader - if you moved to Portugal and applied before the deadline, you locked in those benefits. But in October 2023, the Portuguese government announced it was shutting the door. The final date to apply was March 31, 2025. After that, no new NHR applications were accepted.

Today, if you’re thinking of moving to Portugal to avoid crypto taxes, you’re too late. The program is closed. There’s no loophole. No backdoor. No exception for crypto traders. The only people who still benefit are those who applied and got approved before March 2025. They keep their 10-year benefits until 2035. Everyone else? They’re on a new system called IFICI - NHR 2.0.

IFICI: The New, Much Narrower Tax Program

IFICI stands for Tax Incentive for Scientific Research and Innovation. It’s not a replacement for NHR. It’s a completely different program with different goals. Instead of welcoming anyone with money, it only wants scientists, engineers, researchers, and high-level tech professionals. If you’re a crypto investor who doesn’t work for a blockchain startup or publish academic papers on distributed ledgers, you likely don’t qualify.

Under IFICI, you can still get a 20% flat tax rate - but only on income from approved professions. That means if you’re running a crypto trading business as a sole trader, you’re out of luck. The government doesn’t consider that a "highly qualified profession." Even if you make €200,000 a year from trading, you won’t get the flat rate unless you can prove you’re doing something that aligns with Portugal’s innovation strategy. And right now, that’s not happening for most crypto traders.

Portugal’s Crypto Tax Rules Still Have Some Advantages

Even without NHR, Portugal still has one of the most straightforward crypto tax systems in Europe. Here’s what you pay now:

• Long-term gains (held over 365 days): 0% tax - as long as the asset isn’t classified as a security or held outside the EEA.
• Short-term gains (held under 365 days): 28% tax.
• Staking, lending, airdrops: 28% tax.
• Crypto-to-crypto trades: Not taxed - you only pay when you convert to euros or another fiat currency.

This is still better than most countries. In Germany, you pay tax after one year. In France, you pay 30% flat plus social charges. In Spain, you pay up to 45% on crypto gains. Portugal’s 28% short-term rate is high, but the long-term exemption is a big win.

Here’s a common strategy used by investors: Buy Bitcoin, hold it for 366 days, swap it for USDC, then sell the USDC for euros. If you do it right, you trigger no tax. The key is timing and documentation. You must prove you held the asset for over a year. That means keeping records of every transaction - wallet addresses, timestamps, fiat values at the time of trade.

What You Need to Prove You’re a Tax Resident

Even if you qualify for IFICI or just want to pay Portugal’s standard crypto tax rates, you need to be a tax resident. That means:

• Spending at least 183 days in Portugal in a calendar year, OR
• Having a permanent home in Portugal that you use as your main base.

You also need a Portuguese tax number (NIF). You can get one without living there, but you’ll need a fiscal representative - usually a lawyer or accountant - to file your taxes. Fees for this service range from €1,200 to €2,500 per year.

And here’s the catch: You must declare your worldwide income every year. Portugal doesn’t let you hide income from other countries. If you’re a U.S. citizen, you still owe taxes to the IRS. Portugal doesn’t care - but the IRS does. You can’t use Portugal as a tax shelter if you’re American. FATCA rules still apply.

Why People Are Still Moving to Portugal

Despite the end of NHR, Portugal still ranks 5th on the Nomad List for digital nomads. Why? Because it’s not just about taxes. It’s about lifestyle. The weather is mild. The cost of living is lower than in Germany or France. English is widely spoken. The Golden Visa program still exists - if you invest €500,000 in real estate or €350,000 in renovation projects, you can get residency. And for crypto investors, the tax rules are still clearer than in most places.

Many people who applied for NHR before the deadline report savings of 20-30% on their crypto gains. One Reddit user, "PortugalCryptoGuy," said he saved €18,000 in taxes in 2024 just by holding his Bitcoin for 13 months. Others, like "TaxNomad2025," were shut out of IFICI because they didn’t have a tech job - even though they made €150,000 trading crypto.

The Big Risk: Future Changes

Portugal’s crypto tax rules aren’t set in stone. The EU’s MiCA regulations, which took full effect in July 2025, require all member states to standardize how crypto exchanges operate. That could mean more reporting, more transparency, and eventually, more taxes. The Portuguese Ministry of Finance said in August 2025 that they’ll review crypto taxation in Q1 2026. Analysts at Deloitte Portugal predict they might extend the tax-free holding period from 365 days to 730 days to match EU trends.

For now, the 365-day rule stands. But if you’re thinking of moving to Portugal and relying on crypto tax benefits, don’t assume they’ll stay this way. The government is under pressure from the EU to increase revenue. What’s friendly today might be taxed tomorrow.

What You Should Do Now

If you missed the NHR deadline:

• Don’t expect the 20% flat tax rate unless you qualify under IFICI as a scientist or tech professional.
• Use the 365-day rule to your advantage. Hold your crypto for over a year before selling.
• Use crypto tax software like Koinly or CryptoTaxAudit to track your trades and prove holding periods.
• Don’t trade crypto-to-crypto thinking it’s tax-free - it is, but only until you cash out to euros.
• If you’re a U.S. citizen, talk to a cross-border tax specialist. Portugal’s rules don’t override IRS requirements.

If you already have NHR status:

• You’re locked in. Keep your records. File your returns. Enjoy your 20% rate and crypto tax exemptions until 2035.

Portugal isn’t the tax paradise it once was. But it’s still one of the most transparent and predictable places in Europe to hold crypto. The rules are clear. The system works. You just have to play by them - and you have to play them now, before they change again.