DAC8 Transposition in Portugal: Implementation Guide

Portugal's relationship with crypto-asset taxation has undergone a dramatic shift in recent years. Once considered a crypto-tax haven within the EU, Portugal has moved toward a structured taxation framework that aligns with broader European trends. DAC8 arrives as Portugal consolidates this new approach.

From Tax Haven to Taxed Haven

Until 2023, Portugal was one of the few EU countries that did not explicitly tax individual crypto-asset gains. The Autoridade Tributária e Aduaneira (AT — the Portuguese Tax and Customs Authority) had issued rulings suggesting that casual crypto trading by individuals was not subject to income tax, attracting a wave of crypto investors and digital nomads to the country.

This changed with the 2023 State Budget Law (Orçamento do Estado para 2023), which introduced a 28% capital gains tax on crypto-asset disposals held for less than one year. Crypto-assets held for more than 365 days remained exempt from capital gains tax, creating a strong incentive for long-term holding.

The 2024 and 2025 budget laws further refined the framework, and Portugal now has a structured, if still evolving, crypto tax regime.

Regulatory Framework

The Banco de Portugal supervises CASPs operating in Portugal, primarily for AML/CFT purposes. CASPs must register with the Banco de Portugal and comply with the Portuguese AML framework (Lei n.º 83/2017).

Portugal's crypto market is relatively small compared to larger EU economies but has been growing, partly driven by the country's previous tax-friendly reputation and its attractive Non-Habitual Resident (NHR) tax regime, which drew international crypto professionals and investors.

Transposition Process

The Ministry of Finance (Ministério das Finanças) is responsible for transposing DAC8 into Portuguese law. The implementation is expected through amendments to the Legal Framework for the Automatic Exchange of Tax Information (Regime de Comunicação de Informações Financeiras), which transposes previous DAC amendments and CRS into Portuguese law.

The AT will serve as the competent authority for receiving DAC8 reports and exchanging information with other EU Member States.

Portuguese TIN System

Portugal uses the Número de Identificação Fiscal (NIF) as the TIN for both individuals and entities. The NIF is a nine-digit number assigned to all Portuguese tax residents and to non-residents with Portuguese tax obligations.

For CASPs operating in Portugal, collection of NIF from Portuguese users should be straightforward, as it is already required for AML purposes. The challenge will be collecting TINs from non-Portuguese users, particularly given the international composition of Portugal's crypto community.

Expected Penalties

Portugal's penalty framework for tax reporting violations includes fines under the Regime Geral das Infrações Tributárias (RGIT — General Regime for Tax Infringements), which provides for administrative fines ranging from €150 to €45,000 depending on the severity and nature of the violation, additional penalties for late filing or systematic non-compliance, and potential criminal prosecution for serious tax offenses.

DAC8-specific penalties will be established through the transposition legislation and are expected to be consistent with Portugal's existing enforcement framework.

Impact on the Portuguese Crypto Community

Portugal's crypto community includes both Portuguese residents and a significant population of foreign crypto professionals and investors who relocated to Portugal under the NHR regime. DAC8 will affect both groups.

For Portuguese residents trading on foreign platforms, DAC8 will provide the AT with transaction data that can be cross-referenced against individual tax returns, significantly reducing the scope for unreported crypto income.

For foreign residents in Portugal, DAC8's automatic exchange mechanism will ensure that their home country tax authorities also receive data about their crypto transactions on Portuguese platforms. This bidirectional transparency may influence the attractiveness of Portugal as a destination for international crypto professionals.

Practical Considerations

CASPs operating in Portugal should monitor AT publications for specific technical guidance on the DAC8 XML format and filing procedures, prepare for the look-back process to collect TINs and self-certifications from existing users, consider the multilingual requirements of serving an international user base in Portugal, and coordinate DAC8 preparation with MiCA authorization planning.

Conclusion

Portugal's evolution from crypto-tax haven to a structured taxation environment reflects the broader European trend toward crypto transparency. DAC8 transposition will complete this transformation by providing Portuguese tax authorities with systematic reporting data. CASPs operating in Portugal should embrace this shift and prepare their compliance systems accordingly.