Portugal Golden Visa Cryptocurrency Tax: Ultimate Guide for 2024

In recent years, Portugal has positioned itself as one of Europe’s most economically innovative countries. When it comes to cryptocurrency in Portugal, the situation is no different, especially with the emerging interest in the Portugal Golden Visa cryptocurrency investment option.

With blockchain technology and cryptocurrencies exploding in mainstream media, Bitcoin dealers are keeping an eye on which European countries offer the most advantages for cryptocurrency users.

And Portugal crypto tax policies ensure that the nation is among the best European countries for investors and traders. The Golden Visa cryptocurrency options add further appeal for those looking to integrate digital assets with residency opportunities.

It’s no wonder the Portuguese government has pivoted toward adopting a regulatory framework concerning cryptocurrency. Blockchain technology is steadily being implemented in several projects in Portugal, with banks also adding some specific measures to regulate Portuguese crypto assets.

In this article, you’ll learn more about Portugal’s cryptocurrency taxes, including the new regulations and latest developments.

Portugal’s 2023 Update on Crypto Trading

Under Portugal’s 2023 budget plan, a new tax regime was implemented that affects how individuals pay tax on trading crypto assets.

Portugal’s new crypto tax regime (effective from 2023) imposes a 28% short-term capital gains tax on crypto held for under 365 days. Long-term holdings remain tax-free. The tax system categorizes crypto income into capital, capital gains, and self-employment income, each with specific rates.

This specific tax regime means that profits gained from digital asset holdings held for less than one year will now be subject to a 28 percent tax rate. Any crypto held for one year will also be exempt from tax obligation. Authorities will consider capital gains from cryptocurrency issuance and mining operations as taxable income.

The 2023 State Budget Law Proposal included a sub-paragraph scrutinizing the concept of capital gains, considering income deriving from the sale of crypto assets held that do not constitute securities.

The regime imposed on capital gains income derived from transactions with bonds, shares, and other securities, which aimed to increase the taxation of speculative capital gains held for one year or less, was extended to tax on capital gains derived from cryptocurrency transactions with crypto assets.

Crypto is defined in the proposal for the State Budget Bill as “any digital representation of value or rights that may be stored electronically, using the distributed register or similar technology.”

Operations related to issuing crypto assets, including Bitcoin and crypto mining, or validating crypto transactions through consensus mechanisms are considered commercial and industrial activities and fall under the tax category of Business and Professional Income.

Cryptocurrency Laws in Portugal

What are the cryptocurrency regulations in Portugal?

The Portuguese law officially follows EU regulation on cryptocurrency, which stipulates that capital gains from the buying or selling of cryptocurrency should not be subject to VAT. However, while Portugal follows EU guidelines on digital currency regulations, Portuguese authorities have affirmed that crypto will be treated the same as other currencies, not just as an asset. This document from 2016 (in Portuguese) outlines the official treatment of cryptocurrency in Portugal.

Recent clarification to cryptocurrency law in Portugal

The legal status of cryptocurrency in Portugal was clarified in a statement by the Portuguese tax authorities (Autoridade Tributária e Aduaneira) given to a company that is planning to begin mining Bitcoins in the country (A Portugal crypto company). The statement, subsequently published in the Journal de Negocios, reaffirms that cryptocurrency should be treated like any other currency (including any fiat currency) in Portugal.

How Does Portuguese Law Apply to Cryptocurrency Investors?

Portugal crypto taxes

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

• Capital 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

In Portugal, crypto has a special classification, and the new law states that it should not be taxed under capital gains tax regulations when held by the investor for more than 365 days. If held for less than this time, then it would be taxed at 28 percent. Companies registered in Portugal dealing in cryptocurrency are taxed on capital gains (between 28 percent and 35 percent).

Income tax for cryptocurrency in Portugal

Individuals who earn a salary in cryptocurrency are not charged income tax; in other words, it will be tax-free income and not considered taxable income. However, companies based in Portugal that pay their employees in cryptocurrency are required to pay income tax.

Income tax in Portugal is based upon activity and the profit made from it. This means that while Portugal Bitcoin transactions themselves are not taxed, if the transfer of Portugal cryptocurrency is associated with a product or a service, then an invoice must be issued, and the service must also be taxed.

VAT on crypto in Portugal

According to statements released by the Portuguese tax authorities, cryptocurrency under Portuguese law should be treated exactly the same as any other currency, which means that the Portuguese crypto exchange is not subject to VAT.

Capital gains tax for crypto investors

For crypto investors, these currencies (those that are not fiat money) have a special classification, and the new law states that they should not be taxed under capital gains tax policies when held by the investor for more than 365 days. If held for less than this time, it would be taxed at 28 percent.

Crypto companies in Portugal that offer services relating to cryptocurrencies are taxed on capital gains on a sliding scale between 28 percent and 35 percent.

Portugal crypto tax calculator

Here’s a breakdown of how Portugal taxes short-term cryptocurrency profits under the new regulations:

Portugal Crypto tax example

Imagine you buy €5,000 worth of Bitcoin (BTC) in January. By July of the same year, the value increases, and you sell it for €7,500, resulting in a profit of €2,500.

This €2,500 profit has a flat tax rate of 28 percent. However, there’s an exception: If your total taxable income for the year (including all your Capital gains and losses) reaches or surpasses €78,834, the profit from crypto sales might be subject to progressive tax rates ranging from 14.5 percent to 53 percent, depending on your overall income bracket.

The non-habitual resident tax regime

Investors in Portugal who have not been tax residents in the country for the previous five years can benefit from the non-habitual tax regime.

Under the NHR program, capital gains are taxed at 28 percent for all assets, which includes crypto. As mentioned, however, crypto has a special classification, and the new law states that it should not be taxed on capital gains when held by the investor for more than 365 days. If held for less than 365 days, then it would be taxed at 28 percent.

Is NHR ending?

The State Budget Law for 2024 determined the end of the NHR regime from 1st January 2024. However, certain individuals can still apply up until 31st March 2025, and the scheme is being replaced by the Tax Incentive for Scientific Research and Innovation, which has now been implemented. To learn more, please refer to Is The Portugal NHR Ending?

Golden Visa Program and Cryptocurrency in Portugal

It is possible to apply for Portugal’s Golden Visa program with cryptocurrency. The residency by investment program allows individuals outside of Europe to obtain Portuguese residency with a minimum investment of €250,000 in venture capital funds, businesses in the country, or Portuguese national heritage.

After five years of continued investment in Portugal, investors can obtain a European passport and become an EU citizen, giving them the right to visa-free travel and to live and work anywhere in the Schengen Area. Dependents can also obtain residency permits, including spouses, parents, and children under the age of 18 or who are in full-time education.

Tax on Cryptocurrency Gains in Portugal

Capital gains accrued from acquiring and selling cryptocurrencies have been taxed in Portugal since 2023. Note also that your Portugal Bitcoin and crypto trading can be considered tax-free if it’s not done regularly. However, should crypto trading be your primary source of income, you must file a tax return and pay taxes on your earnings, as your capital gain will be subject to income tax when converted into fiat.

Some factors to consider regarding tax on cryptocurrency capital gains:

• How frequently do you trade in crypto (e.g., daily, weekly, monthly)
• How long do you hold your financial products
• How many trading platforms you’re using
• Your profit level
• Your primary activity to generate income from

You will not be viewed as a professional cryptocurrency trader just because one of the qualities stated above applies to your circumstances. Nevertheless, it’s recommended to consult a tax lawyer to double-check what tax, if any, is applicable. For more insights on Portuguese government tax laws, read our The Tax System in Portugal: A Guide for Expats article.

Why is Portugal best for cryptocurrency traders?

In many countries around the world, cryptocurrency investment and trading are facing ever-tightening regulations. This can cause problems specifically for crypto investors in the US, where having American residence can create difficulties, especially during the coin mining process.

Can you pay for services in cryptocurrency?

As Portugal increasingly opens up to the use of cryptocurrencies to pay for services, companies like Global Citizen Solutions are revolutionizing how investors can pay for Golden Visa services. Currently, you can pay for Global Citizen Solutions’ services in cryptocurrencies like Ripple, Bitcoin, and Ethereum. Payment is accepted through the trusted portal Coingate. There has been a recent growth in businesses dealing with cryptocurrency in Portugal, one of which is Utrust, which enables cryptocurrency payments for businesses.

Cryptocurrency regulation around the world

Cryptocurrencies have come under increased scrutiny in many countries in recent years, particularly in countries such as the US, where there have been calls for increased regulation. As a result, ICOs (initial coin offerings) will not accept those with US addresses or residences. For this reason, it makes sense to obtain residency or even citizenship in a cryptocurrency-friendly country like Portugal.

Insurance against future change

The Golden Visa program in Portugal allows nationals outside the EU to obtain residency through investment. If you hold your Golden Visa investment for five years and fulfill all the requirements under Portuguese nationality law, you may be eligible for Portuguese citizenship by naturalization.

Investors do not need to relocate to Portugal to acquire residency and, subsequently, citizenship, as the Golden Visa program has a “stay requirement” (the number of days required to maintain residency) of just seven days per year—this is one of the key advantages of the Golden Visa program.

The Golden Visa can be particularly useful for cryptocurrency traders, as it can provide extra security against future regulations in their home countries. Applicants can invest in the Portugal Golden Visa program as a way to ensure they will have more opportunities open to them in the future for both themselves and their children.

Bitcoin ATMs in Portugal

There are a number of different places in Portugal where you can complete cryptocurrency transactions with crypto visa cards, such as withdraw Bitcoin and other cryptocurrency earnings, including three Bitcoin ATMs in Lisbon.

Economic Stability and Innovation Makes Portugal a Hotspot for Businesses

Since the financial crisis, successive governments in Portugal have introduced several incentives to encourage foreign investment. The result? Today, Portugal’s economy is in better shape than it has been for decades.

This is largely due to a few very successful measures that have brought billions of euros worth of investment to Portugal, as well as a sudden surge in popularity in the country’s tourism sector.

The Portugal Golden Visa program, in particular, has helped to boost foreign investment and is responsible for at least 6.8 billion euros worth of investment in Portuguese real estate, and the non-habitual tax regime has helped to bring many professionals of high cultural and economic cost to the country.

The Digital Nomad Visa, freshly launched in 2022, is further evidence that Portugal is cementing itself as an outward-looking country, attracting many young professionals and remote workers earning a foreign income, including EU citizens, to the country.

The Portugal D7 Visa, also known as the Retirement Visa or Passive Income Visa, was introduced in 2007. Obtaining the D7 Visa allows non-EU citizens, non-EEA or non-Swiss citizens to apply for a residency permit in Portugal, provided they have a monthly passive income of €820.00 or more and sufficient funds in a Portuguese bank account to sustain themselves during their stay in Portugal.

Eventually, Portugal D7 Visa holders may become Portuguese citizens and, therefore, Portuguese tax residents. The Portugal D7 Visa proves to be a successful endeavor to strengthen the Portuguese economy.

Low living costs, flexible Portugal crypto tax laws, and high quality of life make Portugal an excellent place to live and start a business. The country has attracted many entrepreneurs and professionals from across the globe. Both the economy and the real estate market have been undergoing periods of stable growth and are forecast to continue in the coming years.

Why choose Global Citizen Solutions for your Immigration Visa?

GLOBAL APPROACH BY LOCAL EXPERTS

• GCS has offices located across Portugal.
• Members of the US-Portugal and UK-Portugal Chambers of Commerce in Portugal, and the Investment Migration Council (IMC).
• Our expert team can help you throughout your journey to secure your Visa. 

100% APPROVAL RATE

• Our successful track record in applications provides reassurance to applicants. 
• We have helped clients from more than 35 countries secure residency in Portugal.

ALL-ENCOMPASSING SOLUTION

• With a single channel of communication, our approach ensures that you have complete clarity on your application. 
• Our BeGlobal® Onboarding System allows for a total flow of information.

TRANSPARENCY AND PRIVACY

• Our pricing is clear and detailed, you will not face any hidden costs.
• All data is stored within a GDPR-compliant database on a secure SSL-encrypted server.

Frequently Asked Questions about the Portugal Golden Visa and Cryptocurrency

Is Portugal cryptocurrency-friendly?

In recent years, Portugal has positioned itself as one of the most economically innovative countries in Europe. When it comes to cryptocurrency in Portugal, the situation is no different. The Portuguese government has demonstrated a commitment to making cryptocurrency-friendly policies.

Is Portugal a crypto tax haven?

While Portugal has favorable policies on crypto taxation, it’s not a crypto tax haven. Since 2023, Portugal has applied a 28 percent tax for short term crypto gains (capital gains) from selling crypto assets that have been held for less than one year. In 2024, crypto tax havens include Belarus, Bermuda, and the British Virgin Islands.

Is crypto tax-free in Portugal?

In Portugal, VAT is not charged on cryptocurrency transactions, and any payments made using cryptocurrency are not taxed. As mentioned, short-term capital gains (crypto gains) will be subject to a 28 percent tax.

Does Portugal tax worldwide income?

Residents in Portugal are taxed on their worldwide income with progressive tax rates. Non-residents will only be taxed on incomes earned in Portugal (typically at a flat rate).

Will I need to pay taxes in my home country if I move to Portugal? 

This depends on your country of origin. The United States and Eritrea are the only countries that tax non-resident citizens. It’s worth researching Portugal’s double taxation treaties. Portugal has these tax treaties with more than 60 countries, including Germany, Hong Kong, and the United Kingdom.

Why is Portugal best for cryptocurrency traders and crypto investors?

In many countries around the world, cryptocurrency investment and cryptocurrency trading are facing ever-tightening regulations. This can cause problems, specifically for investors in the US, where having American residence can create difficulties, especially during the coin mining process.

While Portugal is not a crypto tax haven, being a crypto trader or a crypto miner in Portugal provides crypto tax benefits.

What is the Portuguese Golden Visa?

The Portugal Golden Visa is a residency by investment program. It allows investors to obtain Portuguese residency by making an investment in the country and provides a clear route to Portuguese citizenship, provided they fulfill all the requirements under Portuguese nationality law. There are many investment options, such as investment funds into scientific research or an investment fund into Portuguese national heritage.

Which country has no tax on cryptocurrency?

While Portugal doesn’t tax cryptocurrency (other than short-term capital gains/crypto gains and some trading), it’s not the only country out there. Belarus, El Salvador, Singapore, and Malaysia are just a few of the most crypto-friendly countries with a wide range of benefits for Bitcoin dealers and other crypto holders looking to minimize their tax burden.

EU countries such as Germany and Malta also have favorable crypto taxes.

Can I buy a property with crypto in Portugal?

Yes, it is now possible, in some situations, to buy real estate with crypto gains in Portugal. The first time this happened was in May 2022, when an investor bought a house in the northern city of Braga, Portugal. So, real estate acquisition as well as selling your house for crypto is also possible.

How to calculate capital gains on crypto in Portugal?

To calculate capital gains on crypto in Portugal, you need to determine the difference between the purchase price and the selling price of the cryptocurrency. Capital gains are calculated by subtracting the original acquisition cost from the sale price. For assets held longer than 365 days, these gains are generally tax-free. Always keep accurate records of transactions for precise calculations.

How do I declare crypto gains in Portugal?

Portugal adheres to EU digital currency regulations, treating crypto like fiat money rather than just an asset. If crypto is your primary income source, you must file a tax return and pay income taxes on your earnings. Investors in Portugal who haven’t been Portuguese tax residents for the past five years may benefit from the non-habitual tax regime, which offers significant tax advantages.

Are there any penalties for not reporting crypto taxes in Portugal?

Yes, there are penalties for not reporting crypto taxes in Portugal. Failure to report cryptocurrency earnings can result in fines and interest on unpaid taxes. It is important to comply with tax regulations and file accurate returns to avoid legal issues and additional costs.

It’s advisable to consult a tax lawyer to confirm your tax obligations, including capital gains tax obligations, and ensure you meet all requirements for paying taxes in Portugal.

Can I cash out crypto gains in Portugal?

Yes, you can cash out crypto in Portugal. There are a number of different places in Portugal where you can withdraw Bitcoin and other cryptocurrencies using crypto visa cards, including three in Lisbon.

What are tax rules for inheriting cryptocurrency?

In Portugal, cryptocurrency inherited is subject to inheritance tax, known as “Imposto do Selo.” The tax rate varies depending on the relationship between the deceased and the heir. Heirs must report inherited cryptocurrency and pay the appropriate tax, adhering to Portugal’s regulations on inheritance.

What cryptocurrency tax benefits can I enjoy as a professional trader in Portugal?

Portugal’s crypto-friendly economy offers significant tax advantages for professional traders. There is no wealth tax on digital assets, and capital gains from crypto held for over 365 days remain tax-free.

Additionally, Portugal’s category B tax designation provides beneficial prospects for traders, including special tax treatment.

Are there any special tax allowances for crypto investors and businesses in Portugal?

Portugal’s tax system is attractive for crypto investors, professional traders, and businesses providing cryptocurrency services. It offers tax exemptions and favorable conditions, making it a prime destination for those seeking a tax-efficient environment for their digital assets and foreign income.

What are the crypto tax rules in Portugal for 2024?

On 1 January 2023, Portugal effected new tax rules for crypto assets. These rules are for people who are considered tax residents in Portugal. Here are the main things you need to know about these new rules and Portugal crypto taxes:

Unique and non-fungible crypto assets won’t be treated as regular crypto assets for tax purposes. Essentially, cryptocurrency laws in Portugal do not forbid the use of cryptocurrencies, allowing individual investors to freely buy, hold, and sell these digital assets. This means that cryptocurrencies are legal in Portugal, and the government recognizes their potential as alternative forms of payment and investment.

Recent statements released by the financial authorities have clarified the official stance of cryptocurrency laws (including Portugal’s crypto tax regulations), which go a long way towards cementing Portugal’s place as one of the top countries for crypto traders and investors.