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

Portugal used to be the go-to place for crypto investors looking to slash their taxes. No capital gains tax on long-term holdings. No tax on foreign income. A flat 20% rate on local earnings. It sounded too good to be true - and for new applicants, it is. As of March 31, 2025, the original Non-Habitual Resident (NHR) program is closed. If you didn’t apply before that date, you can’t get it anymore.

What Happened to the NHR Program?

What replaced it? The Tax Incentive for Scientific Research and Innovation (IFICI), also called NHR 2.0. It’s not the same. The old NHR was open to almost anyone who moved to Portugal and stayed 183+ days a year. IFICI only applies to people in very specific high-skill fields: scientists, engineers, researchers, or highly qualified professionals in tech and innovation. If you’re a full-time crypto trader making €150k a year but don’t have a PhD or a patent, you’re out of luck.

How Does Portugal Tax Cryptocurrency Now?

• Long-term holdings (over 365 days): Still tax-free. If you bought Bitcoin in January 2024 and sold it in March 2025, you owe nothing in Portugal.
• Short-term gains (under 365 days): Taxed at 28%. This applies to any profit from selling, trading, or cashing out crypto you held less than a year.
• Crypto-to-crypto trades: Not taxed in Portugal. You can swap Bitcoin for Ethereum without triggering a tax event. This lets you rebalance your portfolio without paying tax - a big advantage over countries like Germany or the U.S.
• Staking, lending, airdrops: Treated as income. Taxed at 28%, no matter how long you’ve held the asset.

There’s no wealth tax. No tax on dividends from foreign stocks. No tax on pensions from abroad - if you’re already an NHR holder. But for new residents under IFICI? Those perks are gone unless your job qualifies.

Can Crypto Investors Still Use IFICI?

For example:

• You run a blockchain startup developing a new consensus algorithm and have a patent pending.
• You’re a data scientist building AI models for on-chain analytics and work with a Portuguese university.
• You’re hired as a blockchain architect by a Portuguese fintech firm with R&D funding.

But if you’re just buying, holding, and trading crypto on your own? You don’t qualify. The Portuguese tax office isn’t interested in passive investors anymore. They want innovators - not traders.

There’s no official guidance yet on how IFICI applies to crypto. The Tax Authority hasn’t published rules. So even if you think you qualify, you’re flying blind. Many applicants are getting rejected because they can’t prove their work is "scientific" or "technological" enough.

What About People Who Got NHR Before the Deadline?

• 20% flat tax on Portuguese income (like rental or freelance earnings)
• Zero tax on foreign-sourced income (crypto gains, dividends, pensions)
• No tax on long-term crypto holdings

You’ll keep these benefits until 2035, even if the rules change later. That’s the big win for early adopters. Many are already cashing out crypto gains tax-free this year - some saving 22% or more compared to what they’d pay in Germany or Spain.

How to Prove You’re a Tax Resident in Portugal

• Stay in Portugal for at least 183 days per year (consecutive or not)
• Or prove you have "strong ties" - like a rented apartment, Portuguese bank account, utility bills, and family living there

You also need a Portuguese tax number (NIF). That’s easy to get - just show up at a tax office with your passport and proof of address. But getting NHR or IFICI? That’s harder. You need a fiscal representative (a local accountant or lawyer) to file your application. Fees range from €1,200 to €2,500. Most people use services like Get NIF Portugal or Global Citizen Solutions.

What Crypto Investors Should Do Now

• Don’t wait. The NHR window is closed. IFICI is narrow. If you’re not a tech founder or researcher, Portugal’s tax perks are now limited to long-term holding.
• Hold for 365+ days. That’s your only real tax advantage now. Buy in January, sell in March next year. No tax.
• Use stablecoins to avoid triggering gains. Sell your Bitcoin for USDT, then sell USDT for euros later. The trade from BTC to USDT isn’t taxed. The cash-out is only taxed if you held USDT less than a year.
• Track every transaction. Use Koinly or CryptoTaxAudit. You need timestamps, wallet addresses, and euro values at the time of each trade. The tax office can ask for this.
• Don’t assume crypto-to-crypto trades are safe. While Portugal doesn’t tax them, your home country might. U.S. citizens? The IRS taxes every trade, no matter where you live.

Portugal vs. Other Crypto-Friendly Countries

• Germany: Tax-free after one year. No residency needed. But you still pay VAT on crypto purchases.
• Switzerland: Cantons vary. Zug and Zurich are crypto hubs. No capital gains tax on personal holdings.
• Malta: No capital gains tax on crypto held as personal assets. But the government is tightening rules.
• Spain: 19-26% on crypto gains. No long-term exemption. Worse than Portugal.
• France: 30% flat tax on all crypto gains. Complex reporting.

Portugal still beats most of them on simplicity. But it’s no longer the top choice. The 2025 Digital Nomad Index ranked Portugal 5th - down from 2nd in 2023. The main reason? The NHR end.

What’s Next for Portugal’s Crypto Tax Rules?

Deloitte Portugal predicts the government will extend the 365-day holding period to two years by 2026 to match EU trends. Others think Portugal will keep the 1-year rule to stay competitive.

One thing’s clear: the golden age of easy crypto taxes in Portugal is over. The country isn’t shutting down crypto - it’s just filtering who gets the perks. Now, it’s for innovators, not just investors.