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?
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
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?
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.
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 https://celsius.network/earn-rewards-on-your-crypto/
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.
I have a question regarding the personal income tax in Portugal. I hope that someone can help me out. Here is the situation:
Hope to get advice from someone here!
Regards,
Hi Liam - could you share that with me as well? I’m in the same boat. But I am wondering if the Non Habitual Residency allows you not to pay CGT in Ireland, if you are tax resident in Portugal? Cheers
Hi,
I appreciate the reply and the heads up on this info as I wasnt aware of that as i hadnt come across anywhere whilst doing research.
If ye get the article could you pop it on here.
Again really appreciate the help!!
This is not an easy read…but also seems to suggest DTA works in favour of not having to pay CGT once resident in Portugal (if coming from Ireland).
Thanks Folks, new to site. I am looking to move to Portugal before year end. I am hoping to cash out of Crypto and not have Revenue.ie come after me. Is availing of the NHR Non-Habitual Residence option the way to go? I have NIF, Bank account and long term residence sorted. Can i be confident that i am doing this correctly and not giving Irish Tax authorities any opportunity? NHR states you only need to reside in Portugal for 183 days? does this mean i can travel back to Ireland during the year?
Hi Kieron - I’m attempting to get tax advice from a Portuguese lawyer on the subject. I’ll update this thread once I know more. I’m leaning towards NHR being a panacea for not having to pay CGT in Ireland, despite the ordinary residence wording on Revenue, based on the double tax agreement that exists between Portugal and Ireland (posted above) and the wording of it.
Thanks Gabriel1