PORTUGAL Law and Practice Contributed by: Tânia de Almeida Ferreira, João Pedro Albuquerque, Filipe Gomes da Silva and Pedro Neves, CCA Law Firm
3.6 Other Income Portugal taxes crypto‑asset income earned by indi - viduals based on its nature: as business/profes - sional crypto activities (including mining/validation), as investment‑type returns from crypto operations (generally taxed at 28%, with an option to aggre - gate), and as capital gains. Where crypto‑assets do not qualify as securities, capital gains are generally taxed at 28% if held for less than 365 days, while gains (and losses) on assets held for 365 days or more are excluded from taxation, subject to the EU/EEA or treaty/exchange‑of‑information condition. Cryp - to‑to‑crypto exchanges are, in principle, tax‑deferred until conversion into fiat currency or other non‑crypto consideration. For legal entities (and individuals subject to organ - ised accounting), crypto results are included in taxable profits under the general CIT‑based rules. 4. OECD/G20 Global Tax Reform 4.1 Pillar One – Amount B As of 2026, Portugal has not enacted specific provi - sions implementing the OECD’s simplified and stream - lined approach for baseline marketing and distribution activities (Amount B). As such, the existing transfer pricing framework con - tinues to be mainly governed by domestic provisions that largely align with the OECD Transfer Pricing Guidelines and expressly state that the Guidelines should be taken into account in the application of the arm’s length principle. Accordingly, there are no mate - rial deviations from the (old) OECD framework in this respect. In addition, according to Portugal’s most recent OECD Transfer Pricing Country Profile, the adoption of the simplified approach remains under consideration. Portugal therefore appears to be monitoring interna - tional developments and awaiting further alignment and practical experience in other jurisdictions before acting.
A similar effect (exemption) may also result from the applicable DTT, where the treaty allocates exclusive taxing rights to the state of residence of the transferor. Where neither the domestic exemption nor the DTT provides for relief, capital gains are subject to CIT at a rate of 25%. 3.5 Employment Income As a rule, any remuneration paid or made available to an employee in connection with an employment relationship (including salary, bonuses and benefits in kind) qualifies as employment income and is subject to Portuguese PIT. For Portuguese tax residents, employment income is taxed at the general progressive rates, currently rang - ing from 12.5% to 48%. A solidarity surcharge further applies at a rate of 2.5% on the portion of taxable income exceeding EUR80,000, and 5% on the portion exceeding EUR250,000. Specific regimes may apply in certain cases, nota - bly under the former and the new NHR regime or the regime applicable to former tax residents returning to Portugal. Non-residents are generally subject to withholding tax at a flat rate of 25% on Portuguese-sourced employ - ment income. Portuguese domestic law does not establish a spe - cific regime governing short-term assignments or cross-border employment. Tax treatment depends on: (i) the individual’s tax residence status; (ii) the appli - cable source-of-income provisions (namely, where the employment is effectively exercised); and (iii) the application and provisions of any applicable DTT. Likewise, there are no specific income tax provisions addressing remote working arrangements as such. Accordingly, one must resort to general residence and source principles and provisions. From a corporate tax perspective, remote working arrangements may give rise to PE concerns where an employee performs activities in Portugal on behalf of a foreign employer, requiring a case-by-case assessment.
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