Crypto witdrawal in Portugal

Hi guys!

I’m new to this forum but it appears there are several people active here that are in a similar situation as me and I would like some advice/insights.

My situation is the following:

  • EU citizen
  • Made a nice gain from crypto and not liking the tax treatment in my current residence (EU country)
  • Planning to apply for NHR visa in Portugal due to beneficial tax treatment of crypto and foreign income.

The details of this application process are mostly clear to me (I have discussed with my Portuguese attorney) but I have a few additional questions I would like to ask the community:

  • If I want to withdraw funds from a crypto exchange to a Portuguese bank; which bank is the most crypto-friendly? I read Santander is one. Other suggestions?
  • Will the bank ask many questions if you transfer funds from an exchange to their account?
  • Any banks to absolutely avoid in this regard?
  • How to prove income from staking? when you do trades you can share a trade log with the bank to prove the origin of the funds, but if you stake in a decentralized platforms it is not so straightforward I think.

My attorney from Lisabon told me that BCP Millenial bank allows for an account to be set up without the physical presence of the customers (the attorney can arrange this, if you provide certified copies of ID and power of attorney along with some basic info) but I don’t know if they are crypto-friendly or not.

  • Let’s say I receive NHR tax status by, for example, August 2021. Would I have to file taxes on my income only since this date, OR would all income from the beginning of 2021 need to be reported in Portugal?

-Any good accountants that you can refer maybe? He/she need to be knowledgeable about income from crypto (capital gains, earning from lending/staking/providing liquidity/…) and income from abroad.

Thanks in advance!

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You would need to report all income since the date you became a tax resident. If I was on my PC I’d copy the link to how that’s defined.

1 Like

I’m on my PC

The law says in Article 16 of CIRS (translated by Google Translate):
“1 - People who reside in Portuguese territory are those who, in the year to which their income relates:
a) There have been more than 183 days, consecutive or interpolated, in any 12-month period beginning or ending in the year in question;
b) Having stayed for a shorter period of time, there, on any given day of the period referred to in the preceding paragraph, have housing under conditions that suggest that they currently intend to maintain and occupy it as their habitual residence;”

“3 - Persons who fulfill the conditions provided for in paragraphs a) or b) of paragraph 1 become residents from the first day of the period of stay in Portuguese territory, except when they have been resident there on any day of the previous year, in which case they consider themselves to be residents in this territory since the first day of the year in which any of the conditions provided for in paragraph 1 are met.”

http://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs16.aspx

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Thanks for the reply Dan.

For those who it might be useful: I checked with Wise (former TransferWise) if they allowe deposits from crypto exchanges.

Their reply below:

QUOTE

Hello XXX,

Thanks for getting in touch!

I confirm that there’s no restriction on receiving money from these platforms to your balances if they’re regulated under the EU/UK laws.

And only Kraken aka payward ltd is regulated an UK financial regulation authority, apart from it no other platforms are listed in their website.

You can click here to see more examples of crypto asset firms with temporary FCA registration in the UK.

I hope that helps. Let me know if you have any questions.

UNQUOTE

So funds could be transferred to a Portuguese bank via Wise.

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I also have crypto accounting questions related to Portugal’s 0% cap tax on crypto. Mainly concerned that our trading is too frequent and represents too much of our income not to be considered professional trading and so subject to much larger taxes (I’ve read 48%!). We’re not in Portugal yet but have been researching our options for residency (GV vs D7). Seems we need a good accountant in PR with deep crypto knowledge. Does anyone have any suggestions? Thank you!