Unfortunately, at this point, it is still not possible to execute your investment in Portugal using cryptocurrency, as the current law in force only foresees payments in fiat currency (euro).
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Since capital gains from crypto sales are not subject to income tax in Portugal, can I use crypto to pay for my investment for my Golden Visa?
Since capital gains from crypto sales are not subject to income tax in Portugal, can I use crypto to pay for my investment for my Golden Visa?
Answers
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In practice, yes, it is possible to use crypto in order to make the Golden Visa investment. Portugal already has a bank (Bison Bank) that deals with crypto and it is possible to convert the crypto into fiat and make the investment in fiat. There are also Venture Capital Funds (the investment in these types of funds are also eligible for GV) that are preparing to accept the crypto investment directly, but are still in the development phase. Finally, it is possible to purchase houses in cryptocurrency and the purchase of houses in the interior of Portugal is also eligible for GV - the seller must accept the purchase in cryptocurrency. As for the exemption on crypto sales, it is important to note that Portugal does not tax cryptocurrency gains if some requirements are met, but this non-taxation implies tax residency in Portugal. In other words, the fact that Portugal does not tax cryptocurrency gains does not mean that the country of residence of the GV applicant (if different from Portugal) cannot tax that income, even if obtained/converted in Portugal. The international rules of taxation usually grant the power of the country of residence to tax capital gains. Thus, if the individual is not resident in Portugal, the issue of the taxation of the gains should be confirmed with the country of residency. To sum up: 1. In practice, it is possible to make the GV investment with cryptocurrency although this usually implies the conversion; 2. We can assist you with the GV process, or other visa such as the D7; 3. Assuming that the applicant is not a tax resident in Portugal, the fact that Portugal does not tax cryptocurrency gains does not exclude the possibility of the country of residency taxing these gains; 4. If the individual is a tax resident in Portugal we can assist and counsel on the requirements that must be met for the non-taxation of cryptocurrency gains.
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No. The Golden Visa law, so far, expressly foresees "investment in euros."
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