Becoming a Crypto Resident in Portugal

Portugal has long been a popular destination for crypto investors due to its favorable tax policies, high quality of life, and strong crypto infrastructure. If you’re considering relocating to Portugal to take advantage of its crypto-friendly environment, this guide will provide you with all the necessary information on how to become a crypto resident, the tax implications, and how to get started.

1. Why Become a Crypto Resident in Portugal?

Portugal is known for offering one of the most attractive environments for private crypto investors in Europe. Key reasons why you might want to become a crypto resident in Portugal include:

• Tax benefits: Long-term crypto gains (held over 1 year) are tax-free for private individuals.
• Regulatory clarity: Portugal has clear and relatively lenient regulations for cryptocurrency.
• Digital infrastructure: Portugal’s digital banking systems, exchanges, and support for fintech are well-developed.
• Lifestyle appeal: With a mild climate, affordable cost of living, and vibrant cities, Portugal is also a popular destination for digital nomads and remote workers.

2. Residency Options for Crypto Investors

There are several pathways to establish residency in Portugal. The most popular options for crypto investors include:

A. D7 Visa – Passive Income Visa

The D7 visa is ideal for crypto investors who are living off passive income (such as crypto profits, dividends, rental income, etc.).

• Requirements:
  • Proof of stable passive income (~€820+/month)
  • Proof of accommodation in Portugal
  • Clean criminal record
• Benefits:
  • Access to healthcare and public services
  • Convert to permanent residency after five years
  • Eligibility for citizenship after six years

B. Digital Nomad Visa

Portugal introduced the Digital Nomad Visa to attract remote workers, including crypto consultants, traders, and entrepreneurs.

• Requirements:
  • Proof of monthly income of at least €3,280 (equivalent to 4x the Portuguese minimum wage)
  • Proof of remote work or business (such as freelance contracts, business ownership, etc.)
  • Valid health insurance
• Benefits:
  • A visa that allows you to work remotely while residing in Portugal
  • Opportunity for long-term residency and citizenship

C. Golden Visa (Discontinued for Real Estate)

Portugal’s Golden Visa program, which allowed foreign nationals to obtain residency through real estate investment, has been phased out for most types of real estate investment in 2024. However, alternative pathways such as cultural or business investments remain.

For most crypto investors, the D7 or Digital Nomad Visa will be the most applicable options.

3. Tax Residency Rules

You become a tax resident in Portugal if:

• You live in Portugal for more than 183 days in a calendar year.
• You have a primary residence in Portugal as of 31 December.

Once you become a tax resident, you are subject to Portuguese tax laws, which means you must declare global income — but Portugal offers significant benefits to crypto investors, as we’ll explore below.

4. Crypto Taxation in Portugal (as a Resident)

Portugal is widely regarded as one of the most crypto-friendly countries in terms of taxation. Here’s how different types of crypto-related activities are taxed:

Holding/Selling After 1 Year

• Tax Treatment: Tax-free for private investors
• Key Details: If you hold your Bitcoin or other crypto for more than 12 months, the profits from the sale are exempt from tax as long as it’s considered a private investment. There is no capital gains tax for crypto held long-term by private individuals.

Selling Within 1 Year

• Tax Treatment: 28% Capital Gains Tax
• Key Details: If you sell your Bitcoin or other crypto within 12 months of acquisition, the profit is subject to 28% capital gains tax. This applies to private investors, and the €600 exemption does not apply to short-term crypto sales.

Staking, Mining, or Lending Crypto

• Tax Treatment: Taxable as Business/Professional Income
• Key Details: If you earn income through staking, mining, or lending your crypto, the profits are taxed as business income. This means that your income from these activities will be subject to personal income tax rates and social security contributions. Keep in mind that staking, mining, and lending are considered professional activities in Portugal.

Day Trading or High-Frequency Trading

• Tax Treatment: Taxable as Business Income
• Key Details: If you engage in frequent or professional trading of cryptocurrencies (such as day trading), Portuguese tax authorities may classify your activity as a business. This would subject your earnings to personal income tax at progressive rates (20%-48%), depending on the total amount of income.

5. Reporting Obligations

As a tax resident in Portugal, you are required to declare:

• Crypto gains: If you sell crypto within 12 months, you must report the sale and pay the appropriate capital gains tax.
• Income from crypto activities: If you are involved in staking, mining, or providing crypto-related services, you must declare any income earned.

Portugal complies with EU regulations, including the DAC-8 directive, which requires crypto exchanges to report user data. This means that even if you don’t report your crypto activities, the tax authorities may still have access to this information.

6. Bank Accounts and Crypto Exchanges

To fully integrate into the Portuguese financial system:

• NIF (Tax Number): You will need a NIF (Número de Identificação Fiscal) to open a bank account and engage in any financial activities in Portugal.
• Bank Accounts: Many Portuguese banks now support crypto-friendly services, so you can easily transfer funds between your bank account and crypto exchanges.
• Exchanges: Use regulated exchanges like Spendo.com to buy, sell, and trade Bitcoin and other cryptocurrencies.

7. Spendo.com: The Easy Way to Start Your Crypto Life in Portugal

Spendo.com offers a seamless and compliant platform for residents in Portugal to buy and sell Bitcoin and other cryptocurrencies.

• Euro payments via SEPA or card
• Fast registration and easy verification
• Fully compliant with EU regulations

Start investing in crypto today and enjoy Portugal’s crypto-friendly environment with Spendo.com.

8. Conclusion

Portugal remains one of the most attractive places in Europe for crypto investors, with a favorable tax system, clear regulations, and a growing community of digital nomads and crypto professionals. By taking advantage of Portugal’s residency options, you can benefit from tax exemptions on long-term crypto gains and enjoy a high quality of life.

If you’re considering relocating, make sure to understand the residency and tax rules in detail and consult with a tax professional to ensure full compliance.

‍