Tax residency in Portugal

Hello
I have just joined your community. Hoping someone can give me some info or guidance
I am an Irish citizen and have been living in Spain for the last 2 years. I have obtained my residency here and also my NIE number and bank account . I’ve been working on real estate for 2 years

I have a large holding in different cryptocurrencies and they are held in wallets. I am planning on moving to Lisbon this September to avail of the tax benefits ie zero capital gains

My ideal would be to move to Portugal and transfer crypto from my wallet to my exchange, exchange for euro and withdraw to my Portuguese bank account with zero capital gains

Sounds too good to be true. Looking for any help or advice on the process. I’m sure some people here have done similar things
What are the steps? Is it as easy as getting a long term rental and providing this with ID etc to get the NIF, then set up bank account

Thank you in advance

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I’m in the same boat. Also considering Portugal and am very curious about the capital gains concerning bitcoin.

Cryptocurrency is tax-free in Portugal

Cryptocurrencies, as with other types of currency, can generate income in a number of different ways:

  • Gains from the sale and purchase of coins
  • Profit from commissions charged in services relating to the acquisition of use of cryptocurrency
  • Profit derived from the sale of products or services for cryptocurrency

The Portuguese tax authorities are quoted as saying that cryptocurrency “An exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.”

This means that any profit from the purchase and sale of cryptocurrency in Portugal will not be taxed, nor will the exchange of cryptocurrency for other currencies.

Capital gains tax

Gains made from the purchase and sale of cryptocurrency is not taxed, as is the same with any other currency. However, companies which offer services relating to cryptocurrencies are taxed on capital gains, on a sliding scale between 28% and 35%.

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I moved to Portugal this year. Despite speaking only 2 words in Portugese, people here are helpful, friendly and willing to communicate in English. You seem to be asking about the steps to residence here. First is to get somewhere to stay temporarily. Then to Finances office with passport to get a NIF which will be linked to your permanent address in Spain. For a local bank account, I got one within 1 hour from Activo Bank and walked out with a debit card. Then get a long term rental and, armed with this address, go to local town hall Camara for an EU certificate of residence. (Certificado de Registo de Cidadao da Uniao Europeia) Costs €15.00 Head back to Financas and they will link your NIF to your new address. You may want to get a health service number (Document de Identificacao do Utente) at your local health center (Centro de Saude). You can exchange your Spanish driver licence for a Portugese one at your local IMI office but, be warned, they will give you a temporary covering letter and you can only drive within Portugal until your plastic licence arrives which can take a long time, as in months.
About all the above, the Corona controls mean that most things are no longer walk in and appointments have to be made for each step so time scale is impossible to predict just now and there are cross border restrictions etc.
I accomplished all the above within 6 weeks start to finish including my driver’s licence. I have read about people having to run in circles for months because the processes vary from place to place. I set up in Aveiro.
As for crypto, I came here after having been savaged by the UK tax rules which see crypto to crypto exchange as tax events. My understanding is that CGT is not payable (yet) in Portugal. I have tried to get information from the crypto “community” but, as you may find, any such community as may exist here does not advertise itself or offer any assistance to newcomers.
It would be useful for us to pool knowledge and experience here. I hope the information I offer here will prove useful to you. Good luck.

7 Likes

Hi Cliff
Thank you for your detailed reply. I have not been on this platform in a week or so, only receiving your response. I have been living in Spain for the last 2 years so I am well use to the Bureaucracy, things can move slower this part of the world lol
But sounds like you got on very well. Our plan will be to move to Lisbon and get an AirBNB for 4 weeks to research the areas and districts. We will then get a long term rental apartment for up to one year before buying
I have sent emails to the Irish Embassy in Portugal and other agencies but i guess with this COVID offices are closed because i have not gotten any response
I will keep you posted if i get info as I will try to phone their offices next week, as far as i know offices are slowly opening again from next week

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Good to hear from you. I hope it all goes well. I’m originally Dublin by the way :shamrock:

Hey @higg, I hope you enjoy Lisbon / Portugal! If you plan on becoming a tax resident, it might be worth checking out the NHR (tax) regime. Have fun!

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Thank you . Exciting new chapter
I’ve been looking into this one as I’m an EU citizen so shouldn’t need the golden visa :sunglasses:

Of course you don’t need the GV. But don’t forget to look at the NHR regime (which has nothing to do with the GV) :wink:

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Thanks for your help

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You’re welcome

Hi everyone,

I came across this article as well https://www.globalcitizensolutions.com/portugal-golden-visa-cryptocurrency/: and is states: The authorities have also clarified that no income tax must be paid by individuals who receive payments in cryptocurrency

I am a European citizen and planning to move Lisbon in September. I work for a crypto company and receive my salary in crypto. Would that mean that i am fully tax exempted

Thanks
Vi

Hello,
I started off with airbnb and, as you guessed, I used my former address for the NIF. However, I used N26 bank to set up the long term rental deposits etc and then got my NIF changed to that address and got my Cert of residence from the Camara. I’m an EU citizen so I did not need any proof of income for Activo. I’ve been very happy with Activo because their card works everywhere here. Some smaller shops don’t take N26.
Hope that helps. Best of luck. Don’t tell anyone how fantastic Portugal is or they’ll all want to come here. :face_with_hand_over_mouth::wink:

It has to be said that how things work in Portugal depends on where you are, what day of the week it is and other unknown variables. That probably accounts for you hearing so many different stories. My experience is in Aveiro. You’ll be fine. Give it a lash as we say :shamrock:

Yep. Opened Activo account using Cert of residence.

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I think DN would be mad to come to Portugal. It’s quite expensive actually.
Personally, I’d look further afield to get set up. The only thing that is enticing about Lisbon is the weather imo.

I’m bound to say I disagree with you about that. I lived in the UK for many years and I find Portugal to be comparable at least but generally less expensive. And the climate is most agreeable too😁

I lived in the UK aswell. Wouldn’t be rushing back. However, its horses for courses. Rent in lisbon isn’t much different than the likes of manchester. If you like options when food shopping you have pingo doce or continente.

Portugal is ok, but only just. Which is probably why a lot of the locals with ambition, shag off to Luxembourg for a better life.

No, because I’m EU citizen with proof of residence in Portugal :grin:

Sorry. I thought I had replied to that.
No, Activo did not request documents relating to income because I am an EU citizen with proof of residence in Portugal.
I think they do require documents when splicing is not EU citizen.

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Hi,
I’m glad I’ve found this article.

I’m an EU member, living in London with UK permanent residency.
I’ve been dealing with Crypto for the last 3 months and I see what’s coming for me with the taxes next April.

So I’m considering moving to Portugal (I’m a Spanish speaker, so it won’t be a difficult transition)

I’m self employed and I have an online company that I can run from anywhere, but I like London

My question is, just by setting up a residency and a bank account will be enough to avoid the crypto taxes?

I guess I can’t have residency in two places at the same time, right?

What I see is that I will have to choose one or the other, is that correct?

Thanks in advance!

Diego