Tax residency in Portugal

Great thread…I’ve been following for a while so thanks for all the great advice so far.

I’m still an 8x away from cashing out so will probably have a few questions over the next year or 5.

First one - When we talk about long-term rental agreement, is 12 months the minimum? Would a shorter one not work?

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Thanks Cliff, I am told I will have my NIF number by the end of the week. Delighted to hear. Then when I get my Lisbon address they will just change this for me

Hey Glenn. You´ll get there, this is going to be an exciting year or so
Yes i have been told that you would need a minimum 12 month contract to qualify as a long term resident

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Great to see this thread active again.

I am a bit worried regarding the banking situation. More specifically, would banks be okay with me just coming and opening a bank account without any credit history in Portugal and then transfering a sizable amount of money from a crypto exchange? I feel this would raise a lot of AML questions on their side, even if they would be ok with accepting the transfer in the first place. I have nothing against supplying documents and proving the origin of the funds, but I’d just like to avoid any multi-month hold ups with burocracy where my money is being held hostage.

Anyone had any experience regarding this kind of stuff?

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You could request a meeting with Nuno at Bison Bank and ask for his guidance. I found him helpful and knowledgeable. His opinion is the gospel truth. Our opinions are free advice.

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My Portuguese lawyer told me the best thing to do is to have a meeting with the bank and explain your situation, and you can prove the funds are legit
Persoanlly my plan is to conver to a stable coin and earn Interest through Earn Crypto Rewards | Earn Bitcoin | Earn Stables - Celsius

But I will also want to deposit cash into a bank for property investment , I will keep you posted on any mroe good info I get. I should be in Portugal within a month

I’m also moving to Portugal soonish under similar circumstances.

The biggest question from tax perspective I think is the division what constitutes professional/business activity.

The strictest guide I have encountered is this:

It mentions that to avoid something to be considered one-off, it should not be done no more than once per year. And says that you should ideally only convert from crypto to fiat every 18 months to avoid possibility of classification as business/professional income by frequency.

It is a bit unclear if this is just overly cautious. The opinion of my lawyer in Portugal is that the bar for something to be considered business/professional is pretty high.

Has anyone experience with any bank when it comes to mined cryptocurrency? What kind of “proofs” have they accepted for this?

Thanks this is very helpful . I am in Portugal now , only I am an American waiting for Irish embassy to open to get my Irish passport . Seems no country likes dealing with American Government or IRS ( banks)

Hi all, I’m currently a German tax resident (EU passport) and am considering what is needed to change my tax residency to Portugal in order to cash out some cryptos without having to stress about taxation.

Has anyone gone through this process?

As I understand it to no longer be considered a tax resident in Germany you cannot have any properties, bank accounts or economic activity.

Portugal is becoming a popular country for anyone interested in crypto, mainly long-term investors and traders. The main goal for the interest in Portugal from somebody involved in the crypto is that crypto profits are tax-free in Portugal.
According to this site: https://www.portugal-golden-visa.pt/faq/portugal-residency-by-investment#how-can-crypto-investors-get-permanent-residency-in-portugal-in-a-way-that-would-exempt-them-from-vats Portugal is in the process of adopting the country’s first legislation regarding cryptocurrency and blockchain technology. As such, applying for a Portuguese residence permit as a crypto investor is, at this moment, impossible, as this kind of activity – as well as its tax regime - is not yet legally foreseen in Portugal.
But there is a “hole” in the tax law.
Crypto traders must think carefully about whether their actions would be recognised as professional income or not. The common rule worldwide is that if trading is your main source of earnings and you are opening and closing positions daily you would most likely rank as a professional trader and your revenue will fall in this category – therefore not being tax-free. The selling of cryptocurrencies is not taxable in Portugal unless due to its frequency it establishes a professional activity, which would make it taxable.
In summary, cryptocurrencies in Portugal are only chargeable if you do it as a professional trading activity and hence you need to start an activity as a trader and pay taxes according to your earnings, otherwise, they are supposed non-taxable in Portugal due to being unable to match in any section in the tax law.
Remark that the above is true for individuals but not for corporate entities.
Another thing to share - BBVA or Santander banks are crypto-friendly.

Hi,

Amazing thread that pretty much answered all my questions in one place! Great to see a lot of people in a similar position and hopefully making plenty of profits in the future (Tax Free lol)

I have one other question though, if all my percentage gain is made as an Irish resident do i then go and go through the steps to become a tax resident of Portugal and withdraw my money?
Do i have to pay tax in the country i was living when the percentage increase happened?

Hi Craig

I have a friend of mine who was going to make to move to Portugal this year also to avail of the capital gains benefits on crypto withdrawing
Unfortunately as an Irish resident the Revenue will have a hold on you for 3 years after you leave the country, on capital gains and similar
I will text him now and ask him to forward me the article from the Revenue explaining this

In my case I have been living outside of ireland for 3.5 years and Spain does not have a hold on me. I hope that helps

Update:

I was able to successfully make a transfer of an x amount of euros from my Kraken account to my bank account Banco BPI in Portugal (BIC/SWIFT: BBPIPTPLXXX).

Right on time, considering the crypto market is currently doing very well.

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I have a question regarding the personal income tax in Portugal. I hope that someone can help me out. Here is the situation:

  • I do not hold EU and US passport
  • I have opened a bank account with Millennium BCP
  • I have NIF and have a tax representative in Portugal
  • I was in Portugal one week in 2019 to open bank account and sorted out the NIF. Additionally I was not in Portugal for the entire year 2020
  • I have purchased some stocks (US and UK stocks) and then sold all stocks in 2020. The gained profit (selling – buying) was about 3000 Euros (three thousand Euros). All the buying and selling have been done via Millennium Trader App. The money in/out shows clearly in my Millennium bank account. Will I have to declare this 3000Euros to the IRS ? Can this 3000 Euros be considered as the non-portuguese income source? Additionally I was not in Portugal for the entire year 2020.
  • I have received some Dividends to my Millennium bank account from a Singapore company (amount < 100000 euros in words: one hundred thousand euros). Will I have to declare this amount to IRS ? and any tax will be applied to this dividend ?

Hope to get advice from someone here!
Regards,