I'm an investor based in the Gulf. What advantages does Portugal offer me as a crypto investor with digital assets such as bitcoins and as a blockchain startup owner?
If you are a bitcoin investor, your activity is exempted from VAT; the Portuguese Tax Authority believes that the bitcoins are a means of payment, whose function is exhausted in itself. So, you have a lot of tax advantages in coming to Portugal; this is not yet a regulated matter. I would suggest you to come to Portugal through the D2 visa, and then start your activity here.
Portugal is in the process of adopting the country's first legislation regarding crypto currency and blockchain technology. As such, applying for a Portuguese residence permit as a crypto investor is, at this moment, impossible, as this kind of activity – as well as its tax regime - is not yet legally foreseen in Portugal. Also, there is no kind of direct application for permanent residence in Portugal. In order to apply for permanent residency in Portugal, first you have to apply for a temporary residence for a period of 5 years. Once you fulfill the 5-year period, you will be entitled to apply either for permanent residence or the Portuguese citizenship.
Cryptocurrencies are mostly used as investment or protection for investors, and are not yet used in Portugal for payment and/or purchase of goods or services, having shown a solidifying trend in the economic and financial world. The recent clarifications issued by the tax administration end doubts regarding the tax framework applicable to income and gains resulting from investment in cryptocurrencies, insofar as the applicable legislation has not changed in order to adapt to this reality. Although it seems advisable that taxpayers maintain a register capable of justifying the origin of their income, especially if they incur certain expenses with certain assets considered by the tax legislator as manifestations of fortune, in the short term, the tax framework of cryptocurrencies in Portugal should remain as they are: the income derived from this type of currencies is not subject to tax (except in terms of professional or business activity). This fact will keep Portugal on the (increasingly shorter) list of countries that do not triple cryptocurrency yields, so that our country can consolidate itself as a desirable destination for investors in cryptocurrencies.
+1-800-347-9390
