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- Portugal Tax Guide 2025
Complete Guide: IRS Portugal 2025
Anexo J, G, G1 & E - All Investments
Capital Gains, Cryptocurrency, Dividends, Law 31/2024 - Revolut, DEGIRO, IBKR, XTB, Coinbase
๐ 2025 UPDATES
1. LAW 31/2024 IN FORCE
Since June 28, 2024, long-term investors benefit from progressive reductions: up to 30% discount (19.6% effective rate) for stocks and ETFs held for 8+ years.
2. โ CRYPTOCURRENCIES: 365 DAYS EXEMPTION
Portugal maintains one of the best regimes in Europe: cryptocurrencies held โฅ365 days are 100% tax-free. Crypto-to-crypto exchanges remain non-taxable.
3. AGGREGATION (englobamento): 50% EXEMPTION ON DIVIDENDS
If you choose aggregation (englobamento), just 50% of dividends are taxed. It can result in significant savings for those on low/medium incomes.
4 Supported Anexos - Automatic XML Generation
๐ Complete Reference: All Tables per Annex
Quick reference table to know where to declare each type of income
| Annex | Quadro | What to Declare |
|---|---|---|
| Anexo J (Foreigner) |
Q08 (8A) | Foreign dividends and interest |
| Q09 (9.2A) | capital gains: stocks, ETFs, bonds | |
| Q09 (9.2B) | Derivatives: options, futures, CFDs | |
| Q09-4A | Crypto <365 days (aggregated by country) | |
| Q11 | Foreign bank/broker accounts | |
| Anexo G (Portugal) |
Q09 | capital gains of PT securities |
| Q13 | Derivatives: options, futures, warrants | |
| Q18 | Crypto <365 days (PT platforms) | |
| Q4A/Q4B | Foreign dividends/interest (tax credit) | |
| Anexo G1 (Exempt) |
Q07 | Crypto โฅ365 days (exempt but declare) |
| Anexo E (PT Capitals) |
Q04 | Dividends/interest of PT entities (NIF) |
Tax-Wizard automatically fills in all these Tables based on your broker statements.
Guides by Topic
Why is it Complicated to Declare Investments in Portugal?
- โข Multiple brokers: Administrative nightmare and manual reconciliations
- โข Manual FIFO calculations: Working hours and risk of error
- โข Currency Conversions: Frequent errors and inconsistent rates
- โข Incorrect statements: Paying more or less
- โข Tax risk: Finance fines
- โข Stress and loss of time: Manual and repetitive process
What Tax-Wizard Does for You
๐ฏ Automated calculations
- โ FIFO and calculation of capital gains
- โ Currency conversions with official rates
- โ Dividends and interest with withholdings
- โ Crypto with 365 day rule
๐ Reports ready to declare
- โ XML for Portal das Financas
- โ Sections per Anexo (J, G, G1, E)
- โ Detail by operation and annual summary
- โ Validations and consistency checks
๐ 1. Capital Gains on Securities (Shares and ETFs)
What Are Capital Gains?
Capital gains are the gains obtained from the sale of assets. For example, if you bought Apple shares for โฌ1,000 and sold them for โฌ1,500, you have a capital gain of โฌ500.
Formula:
Capital Gain = Sale Price - Purchase Price - Expenses (commissions, fees)
Example:
Purchase: โฌ1,000 (+ โฌ5 commission) = โฌ1,005
Sale: โฌ1,500 (- โฌ7 commission) = โฌ1,493
Capital Gain: โฌ488
Tax Rates
In Portugal, you have two options for taxing capital gains:
| Option | Rate | When to Choose |
|---|---|---|
| Flat Tax (taxa liberatoria) | 28% | Annual income > โฌ27,000. Simpler process. |
| Aggregation (englobamento) | 13% - 48% | Annual income < โฌ27,000. You can pay less than 28%. |
๐ฐ Aggregation (englobamento) Option: Pay Less Taxes
If your total income (including salary) is less than โฌ27,000/year, choose aggregation (englobamento) can significantly reduce taxes.
Example: You earned โฌ5,000 in capital gains and have a working income of โฌ20,000 (marginal rate of 28.5%). With aggregation (englobamento), you pay 28.5% ร โฌ5,000 = โฌ1,425. With a flat tax (taxa liberatoria), you would pay 28% ร โฌ5,000 = โฌ1,400. In this case, the flat tax (taxa liberatoria) is slightly better. But if your marginal rate is 13%, you would only pay โฌ650 with aggregation (englobamento).
๐ Additional Solidarity Tax (2025)
For high incomes, an additional solidarity tax applies on taxable income:
- - Income between โฌ80,000 - โฌ250,000: additional rate of 2.5%
- - Income above โฌ250,000: additional rate of 5%
This tax applies to total income (including capital gains with aggregation/englobamento).
๐ Law 31/2024: Reductions for Long-Term Investments
Since June 28, 2024, Portugal has introduced progressive reductions in tax rates for stocks and ETFs held for long periods.
| Holding Period | Tax Reduction | Effective Rate (starting from 28%) |
|---|---|---|
| < 2 years | 0% | 28% |
| 2-5 years | 10% | 25,2% |
| 5-8 years | 20% | 22,4% |
| 8+ years | 30% | 19,6% |
๐ Practical Example: Law 31/2024
Bought Microsoft shares in January 2017 for โฌ5,000.
Sold in January 2025 (8 years later) for โฌ12,000.
Capital Gain: โฌ7,000
Without Law 31/2024: โฌ7,000 ร 28% = โฌ1,960 in taxes
With Law 31/2024 (8+ years): โฌ7,000 ร 19.6% = โฌ1,372 in taxes
๐ฐ Savings: โฌ588
โ ๏ธ Important: Mandatory FIFO Method
Portugal uses the method FIFO (First In, First Out) to calculate capital gains. This means that the first shares purchased are the first to be sold. You cannot choose which lot to sell.
FIFO Method: How It Works
๐ FIFO Example
Shopping:
- 01/01/2023: 10 Apple shares at โฌ100 = โฌ1,000
- 06/01/2023: 15 Apple shares at โฌ120 = โฌ1,800
- 01/01/2024: 20 Apple shares at โฌ140 = โฌ2,800
Sale:
- 03/01/2025: Sell 25 shares at โฌ160 = โฌ4,000
FIFO calculation:
First, sell the 10 shares from 01/01/2023 (โฌ100 each)
Then, sell 15 shares from 06/01/2023 (โฌ120 each)
Cost: (10 ร โฌ100) + (15 ร โฌ120) = โฌ1,000 + โฌ1,800 = โฌ2,800
Revenue: 25 ร โฌ160 = โฌ4,000
Capital Gain: โฌ4,000 - โฌ2,800 = โฌ1,200
๐ก Tax-Wizard automatically calculates FIFO for all your operations, even with hundreds of transactions.
โฟ 2. Taxation of Cryptocurrency
โจ 365 Day Rule: Total Tax Exemption
Portugal is one of the most favorable countries in Europe for cryptocurrencies. If you hold Bitcoin, Ethereum or other cryptocurrencies for โฅ365 days, the capital gain is 100% tax-free.
Taxation Rules
| Situation | Tax Rate | Notes |
|---|---|---|
| Holding โฅ365 days | 0% (EXEMPT) | Account from date of purchase |
| Holding <365 days | 28% | Or aggregation (englobamento) (13%-48%) |
| Crypto-to-Crypto Exchange (BTC โ ETH) |
NOT TAXABLE | Officially confirmed by AT |
| Conversion to EUR/USD | 28% (if <365 days) | Only conversions to fiat are taxable |
๐ Example: 365 Day Rule
Scenario 1: Sell before 365 days
- Purchase: 1 BTC at โฌ20,000 on 01/01/2024
- Sale: 1 BTC at โฌ50,000 on 06/01/2024 (150 days later)
- Added value: โฌ30,000
- Tax: โฌ30,000 ร 28% = โฌ8,400
Scenario 2: Sale after 365 days
- Purchase: 1 BTC at โฌ20,000 on 01/01/2024
- Sale: 1 BTC at โฌ50,000 on 01/02/2025 (366 days later)
- Added value: โฌ30,000
- Tax: 0โฌ (EXEMPT) ๐
Crypto-to-Crypto Exchanges: NOT Taxable
One of Portugal's greatest advantages is that exchanges between cryptocurrencies are NOT taxed. Officially confirmed by Autoridade Tributaria e Aduaneira (Portuguese Tax Authority) (AT).
๐ Example: Swap BTC โ ETH
- Bought 1 BTC for โฌ20,000
- Exchanged 1 BTC for 10 ETH (market value: โฌ35,000)
- You do not pay taxes on this transaction
- You will only pay taxes when you convert ETH to EUR (and only if it was held <365 days)
Other Tax Obligations
| Activity | Taxation |
|---|---|
| Staking/Mining (occasional activity) | 28% on earnings (Category B) |
| Staking/Mining (usual activity) | Business income (open activity) |
| Airdrops > โฌ500 | 10% Stamp Tax + declare in IRS |
| Exchange commissions | 4% Stamp Tax (withheld by the exchange) |
๐ก Tip: Tax Planning for Crypto
If you plan to sell cryptocurrencies, consider waiting until 365 days have passed since purchase. The difference between paying 28% or 0% can be significant. Use Tax-Wizard to track holding periods automatically.
๐ฐ 3. Taxation of Dividends
Dividends received from foreign shares are subject to two layers of taxation:
- Withholding tax in the country of origin (varies by country, typically 15-30%)
- Taxation in Portugal (28% flat tax (taxa liberatoria) or aggregation (englobamento))
Taxation Options
| Option | Rate | Benefits |
|---|---|---|
| Flat Tax (taxa liberatoria) | 28% |
- Simpler process - Final taxation (not included in IRS) - You can deduct foreign withholding tax |
| Aggregation (englobamento) | 13% - 48% (over 50% of dividends) |
- 50% exemption - Best for low/medium incomes - You can deduct foreign withholding tax |
๐ฐ Aggregation (englobamento): 50% Exemption on Dividends
If you choose aggregation (englobamento), just 50% of dividends are taxed at marginal rates. This can result in significant savings.
Example: Received โฌ2,000 in dividends. Has a working income of โฌ18,000 (marginal rate 26.5%).
- Flat Tax (taxa liberatoria): โฌ2,000 ร 28% = โฌ560
- Aggregation (englobamento): (โฌ2,000 ร 50%) ร 26.5% = โฌ1,000 ร 26.5% = โฌ265
- ๐ฐ Savings: โฌ295
โ ๏ธ Important Condition: 50% Exemption Only for National Dividends
The 50% dividend exemption with aggregation (englobamento) only applies to dividends from national companies.
DO NOT qualify for the 50%: Dividends from US companies (Apple, Microsoft, Tesla), UK (post-Brexit), Switzerland, etc.
DO qualify for the 50%: Dividends from companies in Portugal.
Double Taxation and Tax Credit
Portugal has double taxation agreements with over 80 countries (including USA, UK, Germany, France). This allows foreign withholding tax to be deducted from Portuguese taxes.
๐ Example: US Stock Dividends
Received โฌ1,000 in dividends from Apple (US share).
USA withholds 15% at source = โฌ150.
Receives liquids: โฌ850.
Option 1: Flat Tax (taxa liberatoria)
PT Tax: โฌ1,000 ร 28% = โฌ280
Less US tax credit: โฌ280 - โฌ150 = โฌ130
Total payable in PT: โฌ130
Total taxes: โฌ150 (USA) + โฌ130 (PT) = โฌ280
Option 2: Aggregation (englobamento) (marginal rate 23.0%)
Taxable base: โฌ1,000 ร 50% = โฌ500
PT Tax: โฌ500 ร 23.0% = โฌ115
Less US tax credit: โฌ115 - โฌ150 = -โฌ35 (total credit used)
Total payable in PT: 0โฌ
Total taxes: โฌ150 (USA only) โ
โ ๏ธ Attention: Form W-8BEN for US Investors
If you invest in US stocks through brokers such as IBKR, eToro or Revolut, you must fill out the form W-8BEN to benefit from the reduced rate of 15% (instead of 30%) under the Portugal-US double taxation agreement.
๐ 4. Anexo J - Income Earned Abroad
The Anexo J is mandatory to declare all income earned abroad, including:
- capital gains of shares/ETFs sold through foreign brokers
- Foreign Stock Dividends
- Bank accounts abroad (even without income)
- Cryptocurrency (if <365 days)
Anexo J Structure: Relevant Tables
| Quadro | What to Declare | Examples |
|---|---|---|
| Quadro 8A | Dividends and interest | Apple stock dividends, bond interest |
| Quadro 9.2A | capital gains on securities | Selling stocks, ETFs, bonds |
| Quadro 9.2B | Derivatives | Options, futures, warrants, CFDs |
| Quadro 9.4A | Cryptoassets (<365 days) | Sale of cryptocurrencies (foreign platforms) |
| Quadro 11 | Accounts abroad | Revolut, DEGIRO, IBKR, Coinbase accounts |
Quadro 8A: Dividends and Interest
Use this table to declare dividends received from foreign shares and interest from bonds or bank deposits abroad.
๐ Main Fields of Quadro 8A
- Income Code
- Country code
- Gross income
- Tax paid abroad
Quadro 9.2A: Capital Gains on Securities
This is the most complex table, where it states all the capital gains resulting from the sale of shares, ETFs and bonds. Notice: Cryptocurrencies are declared in Quadro 9.4A (see below).
๐ Quadro 9.2A Main Fields
- Source Country
- Income Code
- Date of realization (sale)
- Realization value
- Acquisition date
- Acquisition value
- Expenses and charges
โ ๏ธ Attention: One Line for Each Operation
If you sold Apple stock 50 times during the year, you need to fill out 50 lines in Quadro 9.2A. For active investors, this could mean hundreds of lines. Tax-Wizard completely automates this process.
Quadro 9.2B: Derivatives
This table is for declaring profit and loss of derivative financial instruments: options, futures, warrants, CFDs and other derivative contracts.
๐ Types of Derivatives
- Options: Calls and puts on stocks, indices, etc.
- Futures: Contracts on commodities, indices, currencies
- Warranties: Purchase/sale rights issued by banks
- CFDs: Contracts for difference (Trading 212, eToro, etc.)
๐ Quadro 9.2B Main Fields
- Source country
- Income code
- Net income (gain or loss)
- Tax paid abroad
Notice: Derivatives report the net income (not transaction to transaction like shares).
Quadro 9.4A: Cryptoassets (<365 days)
This framework is specific to cryptocurrencies sold before 365 days holding, acquired through foreign platforms (Coinbase, Kraken, Binance, etc.).
โฟ Difference between 9.2A and 9.4A
- Quadro 9.2A: Stocks, ETFs, Bonds (Traditional Securities)
- Quadro 9.4A: Cryptoassets <365 days (aggregated by country/date)
Notice: Crypto โฅ365 days is exempt and goes to the Anexo G1, Quadro 07.
๐ Main Fields of Quadro 9.4A
- Country Code
- Date of realization (sale)
- Realization value
- Acquisition date
- Acquisition value
- Expenses and charges
Quadro 11: Declaration of Accounts Abroad
You must declare all bank and investment accounts abroad, even if they have not generated income.
Currency Conversion
All foreign currency transactions (USD, GBP, etc.) must be converted to EUR using the official exchange rates of the Bank of Portugal.
๐ Exchange Rates to Use
- capital gains: Use the exchange rate sale date
- Dividends: Use the exchange rate date of receipt
Official rates are available on the Banco de Portugal website: bportugal.pt/page/conversor-de-moeda
๐ต๐น Anexo G - Capital Gains in Portugal
When to Use Anexo G?
The Anexo G is used to declare capital gains on assets obtained through entities with Portuguese NIF or cryptocurrency platforms. Includes:
Quadro 09 - PT Securities
- Shares of Portuguese companies (EDP, Galp, CTT)
- Transactions via XTB (broker with Portuguese NIF)
- Sales on Portuguese stock exchange (Euronext Lisbon)
Rate: 28% or aggregation (englobamento) (with Law 31/2024)
Quadro 18 - Crypto <365 days (PT)
- Cryptocurrency sold before 365 days
- Crypto โ EUR conversions (non-exempt)
- Platforms with Portuguese NIF
Rate: 28% on capital gains
โ ๏ธ XTB and Brokers with Portuguese NIF
The broker XTB has a Portuguese NIF (although it is Polish). Transactions through XTB must be declared in the Anexo G (not in Anexo J). Tax-Wizard automatically detects this situation and fills in the correct Anexo.
๐ก Tax-Wizard Fills in Automatically
When processing your statements, Tax-Wizard automatically identifies which transactions belong to Anexo G (Portuguese NIF) and which to Anexo J (foreign). No need to separate manually.
โฟ Anexo G1 - Cryptocurrency Exempt (โฅ365 days)
โจ Total Exemption - But You Still Have to Declare!
Cryptocurrencies held for 365 days or more are 100% tax-free in Portugal. However, you must still declare them in the Anexo G1, Quadro 07.
Quadro 07 - Capital Gains Not Subject to Taxation
Anexo G1 is used to declare income exempt which must still be reported:
- Cryptocurrencies held โฅ365 days (exempt since 2023)
- Acquisition value and realization value
- Purchase date and sale date
- Identification of the cryptoasset (BTC, ETH, etc.)
๐ Example: Bitcoin held 2 years
Buy: 01/01/2023 - 1 BTC for โฌ15,000
Sale: 03/15/2025 - 1 BTC for โฌ45,000
Capital Gain: 30.000โฌ
Result: As it remained >365 days, the capital gain is 100% exempt.
Still, you must declare it in Anexo G1, Quadro 07.
Tax payable: 0โฌ
โ ๏ธ Why Declare if you are Exempt?
The Tax Authority requires a declaration even for exempt income. This allows the State to:
- Check that you actually complete the 365 days
- Have an official record of your crypto transactions
- Confirm the acquisition cost for future transactions
๐ก Tax-Wizard Separates Automatically
When processing your crypto statements (Coinbase, Kraken, Binance, Crypto.com), Tax-Wizard automatically calculates the holding period and separates transactions between:
- Anexo G1: Crypto โฅ 365 days (exempt)
- Anexo G Quadro 18: Crypto <365 days of PT platforms
- Anexo J Quadro 9.4A: Crypto <365 days from foreign platforms
๐ฐ Anexo E - Dividends and Interest of Portuguese Entities
When to Use Anexo E?
The Anexo E (Quadro 04) is used to declare capital income from entities with a Portuguese NIF. This includes dividends and interest from Portuguese companies.
Quadro 04 - Capital Income
Includes income from:
- Dividends: Shares of Portuguese companies (EDP, Galp, Jerรณnimo Martins, CTT, NOS)
- Fees: Deposits in Portuguese banks, Portuguese bonds
- Others: Capital income of entities with NIF PT
| Type of Income | Annex | Example |
|---|---|---|
| PT company dividends | Anexo E | Dividends from EDP, Galp |
| Foreign company dividends | Anexo J | Apple, Microsoft Dividends |
| PT bank interest | Anexo E | Deposits at BPI, CGD, Millennium |
| Foreign bank interest | Anexo J | Trade Republic Interest, Lightyear |
๐ฐ 50% Exemption with Aggregation (englobamento)
Like foreign dividends, dividends from Portuguese companies also benefit from 50% exemption if you choose aggregation (englobamento). Only half of the value is taxed at marginal rates.
๐ก Automatic Identification by NIF
Tax-Wizard automatically identifies income from Portuguese entities using NIF. If the payer has Portuguese NIF, the income goes to Anexo E. Otherwise, it goes to Anexo J.
โ๏ธ 5. Flat Tax (taxa liberatoria) vs Aggregation (englobamento): Which One to Choose?
This is one of the most important decisions when declaring investments in IRS. The correct choice can result in significant tax savings.
๐ก Rule of Thumb: When to Choose Aggregation (englobamento)
Aggregation (englobamento) is advantageous if:
- Your total income (including investments) is < โฌ27,000/year
- You have significant dividends (benefits from 50% exemption)
- Your marginal rate is < 28%
Flat Tax (taxa liberatoria) is advantageous if:
- Your total income is > โฌ27,000/year
- You have high capital gains (no exemption in aggregation (englobamento))
- Your marginal rate is โฅ 28%
๐ Complete Comparative Example
Profile: Working income: โฌ22,000 | capital gains: โฌ3,000 | Dividends: โฌ1,500
Marginal rate: 35% (total income โฌ26,500)
Option 1: Flat Tax (taxa liberatoria) (28%)
capital gains: โฌ3,000 ร 28% = โฌ840
Dividends: โฌ1,500 ร 28% = โฌ420
Total taxes: โฌ1,260
Option 2: Aggregation (englobamento) (marginal rate 35%)
capital gains: โฌ3,000 ร 35% = โฌ1,050
Dividends: (โฌ1,500 ร 50%) ร 35% = โฌ750 ร 35% = โฌ262.50
Total taxes: โฌ1,312.50
Result: In this case, Flat Tax (taxa liberatoria) is better (savings of โฌ52.50).
If there were no dividends, the difference would be even greater.
๐ 6. Submission Process
Submission Process (Manual)
- Collect all statements from brokers (Revolut, DEGIRO, IBKR, etc.)
- Calculate capital gains using FIFO for each transaction
- Convert values โโto EUR using Banco de Portugal rates
- Fill in Anexo J in Portal das Financas:
- Quadro 8A: Dividends and interest
- Quadro 9.2A: capital gains (one line per transaction)
- Quadro 11: Accounts abroad
- Validate and simulate the declaration
- Submit by June 30 (single deadline for all taxpayers)
โ ๏ธ Problem: Portal das Financas DOES NOT Allow Simulation with Anexo J
One of the biggest frustrations for investors is that the Portal das Financas does not allow simulations to be carried out with Anexo J filled in. This means you cannot see the amount to be paid/received before submitting.
Tax-Wizard Solution: Tax-Wizard allows you to carry out complete simulations before submitting. Learn more about simulations with Anexo J
Submission Process (with Tax-Wizard) โ
- Export pre-filled declaration from Portal das Financas
- Upload to Tax-Wizard:
- Declaration XML file
- Broker statements (Revolut, DEGIRO, IBKR, eToro, Trading 212, etc.)
- Analyze files (Tax-Wizard calculates everything automatically):
- FIFO method applied
- Automatic currency conversions
- Anexo J filled in
- Simulate and see the amount to be paid/received
- Download the XML file ready for submission
- Upload to Portal das Financas and submit
๐ก Advantages of Tax-Wizard
- โ Automatic FIFO calculation (even with hundreds of transactions)
- โ Automatic currency conversion (USD, GBP, etc. โ EUR)
- โ Simulation before submitting (see amount to be paid/received)
- โ Support for multiple brokers simultaneously
- โ Detailed reports in PDF/Excel
โ 7. Frequently Asked Questions (FAQ)
Are cryptocurrencies always tax-exempt?
No. The exemption only applies if you hold the cryptocurrencies for โฅ365 days. If you sell before 365 days, you pay:
- 28% (flat tax (taxa liberatoria)), or
- 13%-48% (if you choose aggregation (englobamento))
Furthermore, crypto-to-crypto exchanges are NOT taxed in Portugal (ex: BTC โ ETH).
How does Law 31/2024 work? Who benefits?
The Law 31/2024 (in effect since 06/28/2024) offers progressive reductions in tax rates for stocks and ETFs held for long periods:
- 2-5 years: 10% reduction โ effective rate 25.2%
- 5-8 years: 20% reduction โ effective rate 22.4%
- 8+ years: 30% reduction โ effective rate 19.6%
This applies automatically if you use flat tax (taxa liberatoria). With aggregation (englobamento), the reduction applies to the marginal rate.
Can I choose which lot of shares to sell (like in the US)?
No. Portugal requires the use of the method FIFO (First In, First Out). The first shares purchased are always the first to be sold. You cannot choose to sell specific lots to optimize taxes.
What if there are losses (capital losses)? Can I compensate with earnings?
Yes. Capital losses can be offset against capital gains from the same year. Rules:
- Compensation in the same fiscal year
- Compensation in the following 5 years (reports losses)
- Declare all transactions in Anexo J (even those at a loss)
Do I have to declare dividends on Portuguese shares (EDP, Galp)?
Not in Anexo J. Dividends from Portuguese companies are declared in the Anexo E (capital income). Anexo J is for income only obtained abroad.
What is the difference between flat tax (taxa liberatoria) and aggregation (englobamento)?
Flat Tax (taxa liberatoria):
- Fixed rate 28% on capital gains and dividends
- Final taxation (not included in the IRS calculation)
- Simpler, better for yields > โฌ27,000
Aggregation (englobamento):
- Marginal rates of 13%-48%
- Dividends: only 50% are taxed
- Best for yields < โฌ27,000
I made 200 transactions on Revolut. Do I have to fill in 200 lines in Anexo J?
Yes, if filled manually. Quadro 9.2A of Anexo J requires one line for each sales transaction.
With the Tax Wizard, this is done automatically in seconds. The system processes hundreds (or thousands) of transactions and generates the XML file ready for submission.
What happens if I don't declare investments abroad?
Consequences:
- Fines: โฌ150 to โฌ3,750 (or 50% of tax due)
- Late payment interest: Calculated from the delivery date
- Inspection process: AT can investigate for up to 4 years (or 12 years in serious cases)
- Tax fraud crime: If unpaid tax > โฌ15,000
Important: Many brokers (especially from the US and EU) report information to AT under the CRS (Common Reporting Standard).
Can I declare investments jointly with my spouse?
Yes. If filing a joint declaration, each taxpayer with investments must have their own Anexo J. Tax-Wizard allows you to process joint returns:
- Submit declaration + extracts from the 1st taxpayer
- Submit resulting declaration + extracts from the 2nd taxpayer
- Final declaration will have both Anexos J completed
Do I have to convert all transactions to EUR?
Yes. All foreign currency transactions (USD, GBP, etc.) must be converted to EUR using the official exchange rates of the Bank of Portugal on the date of the transaction. Tax-Wizard does this automatically.
Do stock splits affect the calculation of capital gains?
Yes. Stock splits adjust the number of shares and the purchase price proportionally. Tax-Wizard automatically applies adjustments for historical splits (e.g. Tesla 5:1, Apple 4:1, Nvidia 10:1).
Are foreign ETFs taxed like stocks?
Yes. ETFs (Exchange Traded Funds) are taxed just like stocks:
- capital gains: 28% (or aggregation (englobamento))
- Benefit from Law 31/2024 (long-term reductions)
- Dividends distributed: 28% (or aggregation (englobamento) with 50% exemption)
- Declare in Anexo J (Quadro 9.2A for sales, 8A for dividends)
Can I deduct commissions and exchange fees?
Yes. All transaction-related expenses can be deducted when calculating capital gains:
- Buying and selling commissions
- Exchange rates (spread)
- Custody or account maintenance fees
- Connectivity fees (e.g. DEGIRO โฌ2.50/year)
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- Support for all brokers and currencies
- Automatic calculation of capital gains
- Report with Acquisitions, Realizations, Dividends, and Interest
- Open positions report and statistics
- Transaction and dividends statistics
- Export Open Positions to Yahoo Finance
Business
All premium features, for accountants, financial advisors, tax consultants, or other professionals and companies wanting to use Tax-Wizard for multiple clients.
- Support for all brokers and currencies
- Automatic calculation of capital gains
- Report with Acquisitions, Realizations, Dividends, and Interest
- Open positions report and statistics
- Transaction and dividends statistics
- Export Open Positions to Yahoo Finance
Legal References and Resources
Anexos from Modelo 3 (PDF):
Tax Guides and Official Sources:
โ ๏ธ Important Notice
Tax-Wizard is a support tool, does not replace professional tax advice. The taxpayer is always responsible for the declaration.
We recommend:
- Confirm your situation with an accountant or tax advisor
- Validate data and calculations before submitting
- Save transaction records and statements
Always consult the Portal das Financas and official sources.