Besides the exemption of VAT, income made from crypto sales also cannot be taxed. Essentially, what this means is that Portugal is viewing cryptocurrencies as a means of payment - i.e. like any other currency, - rather than just an asset.
As previously clarified in 2016 by the PTA, all types of cryptocurrency transactions are exempt from capital gains tax and other taxes from crypto transactions, such as:
a) payment for goods and services;
b) buying cryptocurrency for fiat;
c) trading in digital assets.
For crypto traders who want to avoid taxes, Portugal is the right place. Investors in Portugal who have not been tax residents in the country for the previous 5 years can benefit from the NHR scheme. Under this programme, investors may be able to monetise their personal cryptocurrency earnings in Portugal, without being taxed.
There are, however, some exceptions:
although bitcoin transactions are not taxed, if the transfer of the cryptocurrency is related to goods or services then an invoice must be issued and the service should also be taxed;
individuals who deal in cryptocurrency as a professional activity are still required to pay taxes;
businesses which offer services relating to cryptocurrencies are taxed on capital gains, ranging between 28% and 35%.
Another added benefit to investing in Portugal is the Portugal Golden Visa Programme. Investors may acquire a European passport after 5 years of continued investment in Portugal, giving them the right to work and live anywhere in the Schengen area, which is a shorter period than Greece (7 years) or Spain (10 years). Their dependents, such as children, partners, relatives or financially dependent individuals enrolled in studies, may also be granted residency permits.
Key benefits of applying to Portugal Golden Visa as a cryptocurrency investor:
Holding two passports ensures future stability and allows you to live and do business in Europe, in 183 countries;
You’re only required to stay in Portugal for 7 days per year, so you are able to live in your home country without having to relocate. Portugal Homes has an After Sales team that can also help you take care of your investments when you are away - learn more about it here;
After 5 years, you are granted the Portuguese passport, rather than if it was in Greece (7 years) or Spain (10 years);
Varied investment options, being the investment in real estate the most popular choice for Golden Visa applicants;
About Portugal Homes
PortugalHomes.com specializes in investments through Real Estate and Golden Visa. We help buyers find the right property overseas, whether it be for Golden Visa, NHR, Investment or simply a place in the sun. Our properties are selected with great thought in mind to give our clients the best opportunities. We offer the complete service from introducing them to the Legal Representatives, Currency Exchange, Mortgage Advisors, Property Management, Rental and Furniture Packages along with making sure all our staff are trained to fully understand the buying process and taxes for every scenario. Portugal Homes provides the complete service to anyone looking to buy a new or resale property overseas for holiday use or as a short or long-term investment
Portugal Homes has very experienced and knowledgeable professionals working with some of the most established and reputable developers Portugal has to offer. Our vast experience allows us to guide you through the best investment choices.
Whether you want a holiday home or an investment property, we select the best units for your profile and take care of all the process from start to finish. Even after the sale! Our After Sales services assume the responsibility of furnishing your property at your taste, taking care of the property in your absence, managing the rentals if you wish to rent your property when you’re not in Portugal and so much more!
To learn more about the Portuguese Non-Habitual Resident Program and our After Sales services, please fill the form below.
My property advisor, Mathew McGurn, was truly excellent! His knowledge, professionalism and attention to details was much appreciated. He worked hard to not only find a property that fit all my requirements, he negotiated successfully with agents making sure my offer won over other buyers bidding for the same property. In addition, his communication skills, prompt response time and general help with my getting settled in Portugal went above and beyond the normal.Investor from the USA
Dear Sérgio, thank you so much for arranging our 1º Esquerdo place. We love our place, and your attention to detail is very much appreciated.Tim Thronson - Investor from the USA
A full service, one stop opportunity. Very easy for us a foreigners. Ryan Dunn went above and beyond for us. We appreciate him and his work!Jose Arias - Investor from the USA
Everyone I met with and spoke with has been extremely knowledgeable and professional. Dealing with native English speakers who understand things from my perspective was very reassuring. Finally, knowing that I had Matthew in my corner gave me the confidence to proceed with the process of buying an apartment in Lisbon. Thanks very much.Investor from the USA
So far it has been great. Simon is very knowledgeable and friendly.Loay El Abiad - Investor from Saudi Arabia
It's fantastic how Ryan had complete knowledge regarding Lisbon and dealt with us in a great manner.Akbar Ali - Investor from Pakistan