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Tax Free Bitcoin? Welcome To Portugal

Portugal Crypto Residency Rush

Portugal has bcome the number one country for anyone involved in Bitcoin and other cryptocurrencies, especially long term investors and retail traders. Official statistics, alongside a steep rise in enquiries to Bitcrypto Market shows that residency in Portugal is growing year after year and is it any wonder why?

The Portuguese tax authorities are quoted as saying that cryptocurrency β€œAn exchange of cryptocurrency for β€˜real’ currency constitutes an on-demand, VAT-free exercise of services.” This means that any profit from the purchase and sale of cryptocurrency in Portugal will not be taxed, nor will the exchange of cryptocurrency for other currencies.


What are the cryptocurrency regulations in Portugal?

The Portuguese law officially follows EU regulation on cryptocurrency, which stipulates that gains from the buying or selling of cryptocurrency should not be subject to VAT. Beyond this, there is no other specific legislation on cryptocurrency. This document from 2016 (in Portuguese) outlines the official treatment of cryptocurrency in Portugal.

Cryptocurrencies, as with other types of currency, can generate income in a number of different ways:

  • Gains from the sale and purchase of coins
  • Profit from commissions charged in services relating to the acquisition of use of cryptocurrency
  • Profit derived from the sale of products or services for cryptocurrency

The Portuguese tax authorities are quoted as saying that cryptocurrency β€œAn exchange of cryptocurrency for β€˜real’ currency constitutes an on-demand, VAT-free exercise of services.”

This means that any profit from the purchase and sale of cryptocurrency in Portugal will not be taxed, nor will the exchange of cryptocurrency for other currencies.

The authorities have also clarified that no income tax must be paid by individuals who receive payments in cryptocurrency, however, companies registered in Portugal dealing in cryptocurrency are taxed on capital gains (between 28% and 35%).

In Portugal, tax is paid on a sliding scale, although many professionals considering moving tax residency to Portugal can also benefit from the non-habitual tax regime (NHR), which allows for exemptions and reductions in tax over a 10-year period for individuals of high cultural or economic worth.

How does Portuguese law apply to cryptocurrency investors?

Income tax for cryptocurrency in Portugal

Individuals who earn a salary in cryptocurrency is not charged income tax. However, companies based in Portugal who pay their employees in cryptocurrency are required to pay income tax.

Income tax in Portugal is based upon activity and the profit made from it. This means that while bitcoin transactions themselves are not taxed, if the transfer of cryptocurrency is associated with a product or a service, then an invoice must be issued and the service must also be taxed.

VAT on cryptocurrency in Portugal

According to statements released by the Portuguese tax authorities, cryptocurrency under Portuguese law should be treated exactly the same as any other currency, which means that cryptocurrency exchanges are not subject to VAT.

Capital gains tax

Gains made from the purchase and sale of cryptocurrency is not taxed, as is the same with any other currency. However, companies which offer services relating to cryptocurrencies are taxed on capital gains, on a sliding scale between 28% and 35%.

The non-habitual resident tax regime

Investors in Portugal who have not been tax residents in the country for the previous 5 years can benefit from the non-habitual tax regime.

Under the NHR, you may be able to monetize your personal cryptocurrency profits in Portugal, exempt from capital gains tax.

Golden Visa program and cryptocurrency in Portugal

The Golden Visa program in Portugal is another added benefit to investing in Portugal.

The citizenship by investment program allows individuals from outside of Europe to obtain Portuguese residency through investing upwards of €350,000 in real estate, venture capital funds or businesses in the country.

After 5 years of continued investment in Portugal, investors can obtain a European passport, giving them the right to live and work anywhere in the Schengen area.

Dependents can also obtain residency permits, including spouses, parents, and children under the age of 18, or are in full-time education.

Key benefits of the Portugal Golden Visa program

– Low stay requirement

Applicants are only required to spend 7 days per year in Portugal, meaning that investors can continue living in their home country and do not need to relocate.

– Insurance against future instability

Having two passports provides security against future instability. Portugal has a stable government and economy, and making it an excellent choice for citizenship through investment.

– Strong European passport

The Golden Visa residence permit allows holders to live and do business in Europe, and with a Portuguese passport.

– Freedom of travel

A Portuguese passport allows you to travel to 183 countries worldwide without a visa.

– Passport after 5 years

The Portuguese Golden Visa program allows investors to acquire a passport after just 5 years, shorter than other popular programs in Greece (7 years) and Spain (10 years).

– Range of affordable investment options

Portugal has a dynamic market with a variety of investment options. The most popular choice when it comes to Golden Visa applications is an investment in real estate, but there are also many investment funds which fulfill the requirements of the program.

 -Not blacklisted by OECD

Unlike many other programs, the Portugal Golden Visa is not blacklisted by the OECD.

Bitcrypto Market Services

At Bitcrypto Market we assist investors looking to apply for the Golden Visa program in Portugal.

We have a 100% success rate when it comes to Golden Visa applications, and have helped dozens of cryptocurrency traders to relocate and take advantage of Portuguese residency.

We have a network of contacts within Portugual that are well experienced with the process and we follow a fairly simple procedure from start to finish making it an incredibly easy journey.

We over 1000 properties and real estate avaialable for sale througout Portugal to suit all types of budgets.

Contact us today to find out more, and discover how we’re able to help.

Frequently asked questions about the Portugal Golden Visa and cryptocurrency

Is Portugal cryptocurrency-friendly?

Yes absolutely! Recently Portugal has positioned itself as one of the most economically innovative countries in Europe. When it comes to cryptocurrency in Portugal, the situation is no different. The Portuguese government has demonstrated a commitment to making cryptocurrency-friendly policies.

Is cryptocurrency tax-free in Portugal?

In Portugal VAT is not charged on cryptocurrency transactions, and any payments made using cryptocurrency are not taxed.

Why is Portugal best for cryptocurrency traders?

In many countries around the world, cryptocurrency investment and trading are facing ever-tightening regulation. This can cause problems specifically for investors in the US, where having American residence can create difficulties, especially during the coin mining process.

What is the Portuguese Golden Visa?

The Portugal Golden Visa is a residency by investment program. It allows investors to obtain Portuguese residency by making an investment in the country and also provides a clear route to citizenship.