The State Budget for 2023, presents several amendments to the Personal Income Tax Code (CIRS) and the Stamp Duty Code (CIS), providing for the taxation of transactions related to cryptoactive assets, which until now, in most cases, were not taxed.

Until now, in the absence of specific legislation, Portugal was considered a cryptofriendly jurisdiction as cryptoactive transactions were, as a rule, not subject to taxation. However, it is important to note that the non-existence of taxation was a myth since there were concrete situations - namely when falling under B category of IRS - in which cryptoactive transactions were taxed. The taxation of these (crypto)assets had long been anticipated in view of the growing popularisation of these assets and the proclaimed increase in wealth of some investors.

The first major novelty concerns the fact that, finally, a concept of crypto-asset is introduced in the Law. This concept, in fact, goes beyond the mere digital currency or cryptocurrency.

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