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Does Portugal allow investors to earn cryptocurrencies for providing services and using that money for a golden visa?

Can crypto investors earn this digital money for providing services in Portugal? Also, does one have to pay capital gains tax or other taxes on their global crypto earnings?


Answers
  • March 05, 2022

    If the applicant is a tax resident in Portugal, there is no taxation in crypto earnings unless it originated by a professional crypto's trading activity. The golden visa law demands that the minimum amount of investment is made in euros but it does not forbid the investor to exchange crypto to euros for this purpose before doing the investment.

  • PaxLegal Law
    February 11, 2022

    For an investment to be eligible for a golden visa, it is necessary to get a declaration from a credit institution, which is authorized or registered with the Bank of Portugal and attests an effective international transfer from the investor's account abroad to the investor's bank account in Portugal. The cryptocurrencies are not issued by a central bank or credit institution and they are not directly regulated by the Portuguese law, so they will not be eligible for a golden visa, at least for now. Secondly, although cryptocurrency activity is not directly regulated, there are already some service providers that accept cryptocurrency payment. This is a trend that will naturally increase, even because in Portugal there are already two cryptocurrency brokers registered by the Portuguese central bank. Thirdly, there is no direct taxation on income from cryptocurrency operations in Portugal, so there is no taxation on capital gains. There may eventually be taxation based on obtaining frequent income that may fall into some categories of taxable income.

  • N-Advogados
    February 15, 2022

    Applicants are not allowed to use cryptocurrencies for get a golden visa.