To register a crypto investment in Portugal, particularly for tax or residency purposes, follow these general steps:
1. Choose a Crypto Exchange
- Start by selecting a cryptocurrency exchange that complies with Portugal’s regulations. Popular global exchanges like Coinbase, Binance, and Kraken are commonly used.
2. Complete Identity Verification (KYC)
- Most exchanges require Know Your Customer (KYC) compliance. This involves submitting proof of identity, such as a passport, national ID, and sometimes proof of address.
3. Open a Portuguese Bank Account (Optional)
- While not mandatory for all transactions, opening a Portuguese bank account can make it easier to convert cryptocurrency into euros (EUR) and vice versa.
4. Declare Crypto for Tax Purposes
- Portugal does not tax capital gains from individual cryptocurrency transactions. However, if the income is deemed business or professional income (i.e., crypto trading as a business), then it is taxable.
- Register your crypto activity with Autoridade Tributária e Aduaneira (Portuguese Tax Authority). You’ll need to declare:
- Income from crypto if it constitutes professional or business income.
- Any interest or profits derived from staking or lending crypto.
5. Crypto Residency Application
- Portugal’s Golden Visa Program allows for residency via investment, which can include real estate or potentially crypto assets.
- The recently introduced D7 Visa and Digital Nomad Visa allow remote workers and crypto investors to apply for residency with proof of income or savings from crypto investments.
6. Obtain Professional Advice
- Portugal’s crypto taxation policies can be complex, so consulting with a local tax advisor or lawyer specializing in cryptocurrency is recommended.
These are general steps, and you should always consult official government sources or legal professionals before proceeding.
