Why Portugal should be the first choice for Bitcoin and other cryptocurrency traders

In recent years, investors from all over the world have been turning their attention to Portugal. The small Western European country has suddenly become a hotspot for startups and real estate investment, largely due to investment-friendly regulations.

So what is it about Portugal that suddenly has investors excited? Well, the lifestyle definitely helps, with the capital city within half an hour of some incredible beaches, plus there’s the great climate. It also has one of the lowest costs of living in western Europe, but at the same time consistently ranks highly for quality of life for expats. With sunshine all year round, great food and lively nightlife, Portugal is attracting entrepreneurs and professionals from every corner of the globe.

The good news for cryptocurrency traders is that the Portuguese tax authorities have recently clarified their stance on bitcoin and other currency, which goes a long way towards cementing Portugal’s place as one of the most cryptocurrency-friendly countries in the world.

It’s not just Portugal’s stance on cryptocurrency regulation that makes it an excellent choice for cryptocurrency traders. The Portuguese Golden Visa program gives investors the opportunity to obtain residency and then citizenship after five years of continued investment, without even having to relocate from their home country.

Cryptocurrency is tax-free in Portugal

In a recent statement reported in the Portuguese press, the financial authorities have clarified that cryptocurrency in Portugal should be treated just like any other currency. This means that Bitcoin and other cryptocurrency transactions are exempt from VAT.

Any profit from the purchase and sale of cryptocurrency by individuals in Portugal is not taxed, nor is the exchange of cryptocurrency for ‘real’ currency. Any businesses dealing with cryptocurrency are equally not charged on transactions, but companies registered in Portugal must pay capital gains tax of between 28% and 35%.

Cryptocurrency is seeing increasing regulation around the world

Portugal’s recent clarification on the treatment of cryptocurrency comes at a time when digital currencies like Bitcoin are being increasingly regulated all over the world.

In countries such as the US, future uncertainty over the status of cryptocurrency means that it is difficult to register for ICO’s (Initial Coin Offerings) with an American address. For this reason, it makes sense to register as a tax resident in a crypto-friendly country like Portugal.

Citizenship by investment in Portugal

One of the key benefits of investing in Portugal is its citizenship by investment program, also known as the “Golden Visa”.

This allows investors to obtain residency in Portugal, and after 5 years of continued investment, a Portuguese passport. The main advantage of the Portuguese program is that it has a “stay requirement” (the number of days you have to remain in the country to maintain residency) of just 7 days per year. This means you can invest in the Golden Visa program and still continue living in your home country.

The minimum investment in the Golden Visa program is €350,000 and can be made a number of different ways, such as through venture capital funds or real estate.

The Golden Visa program has resulted in over €4 bn worth of investment in Portugal, with more than 7,000 residence permits granted, and another 12,000 for family members.

Security against future instability

The key advantage of having more than one passport as a cryptocurrency investor is that it provides security against future instability. Portugal has a stable government and economy and has demonstrated its commitment to making tax regulation cryptocurrency-friendly.

Investment in the Golden Visa can provide security and increased opportunities for both investors and their whole families. Dependents, including spouses and children up to the age of 18, or those in full-time education, can also benefit from the same rights, which include freedom of movement across Europe, visa-free travel to many countries all over the world, and access to excellent healthcare and education.

Portugal is tax-friendly for investors

Professionals and investors who move their tax residency to Portugal can also take advantage of the non-habitual resident tax regime (NHR), which gives tax exemptions and reductions to professionals of high cultural and economic worth over a 10-year period.

The NHR regime has been highly successful in incentivizing investment in Portugal and is open to any one of the qualifying professions who has not been registered as a tax resident in the country in the past 5 years.

With VAT exemptions and the NHR regime, investors may be able to monetize personal cryptocurrency profits in Portugal.

Investing in your future

If you’re looking to obtain residence in Portugal, there’s no better time than now to invest. Obtaining a second passport through a citizenship by investment program can give you increased freedom, opportunities, and security, as well as providing a better future for your family.

If you would like to find out more about citizenship by investment in Portugal, visit our site.