Portugal is one of the cryptocurrency friendly countries in the world. Portugal is a also a haven for fintech startups and golden visa investors. We now accept bitcoin and other cryptocurrencies for real estate investment in golden visa program.
Portugal is a pure tax haven especially for crypto investors. It is a tax free country that levies no VAT on individuals or capital gains taxes. There is no tax for exchanging cryptocurrency into fiat currency.
Portuguese Central Bank (Banco de Portugal) does not technically recognise cryptocurrency as currency per se due to lack of monetary policy regulation.
Crypto Tax Treatment
The Portuguese tax authority treats Bitcoin and virtual currencies as a ‘currency’, it is not an asset, considered as derivative product like securities because its value is simply based on supply and demand. The appreciation of cryptocurrencies is not based in any underlying asset.
According to the authorities, cryptocurrencies can generate different types of taxable income:
1) For gains obtained with the purchase and sale of virtual currency units / exchange exchange from the moment of cryptocurrency to real currency (whatever it may be)
2) For obtaining commissions for the provision of services related to obtaining or normal course of cryptocurrency.
3) For gains derived from sales of products or services in cryptocurrency.
In the present case, only the first of the income-generating activities is under consideration.
Bitcoin
Bitcoin has recently emerged as an important asset and digital currency, that is impossible to ignore. Bitcoins are traded in almost all stock exchanges and trading platforms. It is also popular as holding stored value asset and transaction costs for peer to peer transactions are cheaper unlike banks. This makes it ideal for large value real estate buying and selling.
Bitcoin and other cryptocurrencies have largely resisted covid pandemic and also seen as great future investment as more adoption continues.
We accept Bitcoin
We now accept Bitcoin, and other most popular cryptocurrencies like Ethereum, Litecoin, Ripple, Dash, Monero for the real 280K euro estate investment in Portugal for the purpose of golden visa. The minimum investment required for golden visas is
- €280,000 – Undeveloped low density regions
- €350,000 – Major cities
- €500,000 – Lisbon and major cities
Assuming the average price of 1 BTC is €10K euro, it should cost you about 28 bitcoins to buy a property in Portugal, the cheapest possible way.
It is important to understand that you have to prove necessary documentation for source of income obtained from legitimate cause and not involved in any money laundering.
Tax Resident
A person is considered a resident of Portugal if they spend more than 183 days (consecutive or not) in Portugal during any 12-month period. A person who becomes a tax resident in Portugal and has not been taxed as a resident in Portugal for the previous five years may apply for the special tax regime for non habitual tax residents.
Portugal has no inheritance, gift or wealth taxes levied on its residents.
For more information, please contact us.
