Portugal Prediction Market Taxes

How Portugal Taxes Prediction Markets

Portugal does not have specific legislation for prediction markets, so the tax treatment depends on how your activity is classified. Multiple approaches may be defensible.

Our calculator compares the available treatments side-by-side so you can see the exact dollar difference and make an informed decision with your tax advisor.

How to File

1. Log in to Portal das Finanças.
2. Report gains in Anexo G (capital gains).
3. Choose flat 28% or englobamento (progressive rates) — whichever is lower.
4. Convert USD to EUR at ECB rate on settlement date.
5. File by June 30.

Filing deadline: June 30

How are prediction markets taxed in Portugal?

Capital gains are taxed at a flat 28% rate by default. You can opt for englobamento (progressive rates) if your marginal rate is below 28%.

What is englobamento?

Englobamento means including capital gains in your general taxable income, taxed at progressive rates (13.25%–48%). This is beneficial if your total income falls in a bracket below 28%.

Can I deduct losses?

Yes. Losses offset gains in the same year. If you choose englobamento, losses may also offset other income categories.