Crypto Trading tax experience as Portugal resident

[sky walsh]

Greetings! I hope to learn about the Portugal crypto tax situation for a EU citizen residing there. I want to know if the following is possible.

- EU citizen moves to Portugal and establishes residency. Income is passive from crypto staking and tries for NHR but also will do occasional trading with cryptocurrencies as an individual (not business) maybe 50-100 trades per year. Income again is only from staking or passive crypto lending....Say over the next year or two this person did well in investment and trading and the portfolio rises 100-300k euro in this time from good trades. Will this person legally be required to report trades to the Portuguese Taxman even if trades never went to a bank account but stayed in stablecoin and btc. I know Portugal says crypto is tax free but do residents still need to report the trade? Will he be able to cash out in Portugal tax free even if the portfolio is worth 100-300k or even more? Again this would not be proffesional trading with bots or anything like this. Only occasional btc into stablecoin and than stablecoin into btc.

- In case there is an uncertainty in Portugal when this person wants to cash out into a bank account could he or she go to a country like Germany and establish a new residency for the year there while cashing out cryptos that have been held for over a year. This way they can enjoy the German 1 year hold tax free benefits?

Does this sound reasonable?

 

[thedark]

Hi! This sounds exactly as my plans. How far did you come until now? Is Staking/Lending also Tax free in Portugal?
How is it about stocks trading?

The question is are you an professional trader if you just live from it without doing something else.

 

[thedark]

Maybe someone can help with his personal experience as NHR in Portugal.

• How are gains from ETFs are taxed? (mostly in Ireland based)
• How are gains from Stocks are taxed? (Companies all over the world)
• How is Staking taxed?
  • Are Staking-Rewards taxed at all?
  • Are Staking-Rewards only taxed when changing to fiat?
  • Are Staking-Rewards taxed by just holding them?
  • Is there a hold time for the base stake-coins?

 

[sn0wbaLL]

Hey there, same situation, just moved there and now I don't know what to do.
Lawyer says if it's my 1st source of income, I'll have to pay up to 55%
Evaluating what to do next, set up a small freelance activity, pay some and cash out on the side.
Any news?

 

[fewunderstand]

Hello, any success in Portugal so far? I am thinking of Portugal but I am afraid it is a trap and at the end they will tax you as usual because your crypto gains were the larger part of your income.

 

[Verbatim]

Hello, any success in Portugal so far? I am thinking of Portugal but I am afraid it is a trap and at the end they will tax you as usual because your crypto gains were the larger part of your income.

yeah just dont do it...

 

[tsu458]

The whole "move to portugal to live tax free" thing has gone viral in the crypto space in recent weeks.

But the benefits have been overestimated and some new service providers or resellers for NHR applications are guilty of that. Some seem to even recommend to use a foreign entity to claim tax free dividends.

From my understanding: 0% on capital gains, up to 55% on income, and trading crypto is something that results in income. Selling long-term holdings is not.

There seems to be no gurantee on how long the NHR runs, how future proof is that? Corporate taxes and income taxes are very high.

The only benefits are 20% flat tax on specific freelancing jobs and the lack of captial gains tax on long-term crypto, no benefit for traders, startups and no guarantee the benefits exist in 5 years (but by then there could be a exit tax ) .

It's a trap. Go for cyprus or UAE.

 

[CyprusLaw]

The whole "move to portugal to live tax free" thing has gone viral in the crypto space in recent weeks.

But the benefits have been overestimated and some new service providers or resellers for NHR applications are guilty of that. Some seem to even recommend to use a foreign entity to claim tax free dividends.

From my understanding: 0% on capital gains, up to 55% on income, and trading crypto is something that results in income. Selling long-term holdings is not.

There seems to be no gurantee on how long the NHR runs, how future proof is that? Corporate taxes and income taxes are very high.

The only benefits are 20% flat tax on specific freelancing jobs and the lack of captial gains tax on long-term crypto, no benefit for traders, startups and no guarantee the benefits exist in 5 years (but by then there could be a exit tax ) .

It's a trap. Go for cyprus or UAE.

The best way to use the NHR is through a foreign company eg Cyprus. Your company is liable for 12.5% corp tax on profit plus 2.65% on dividend payment, then dividend payment is tax exempt due to the NHR status.

 

[tsu458]

The best way to use the NHR is through a foreign company eg Cyprus. Your company is liable for 12.5% corp tax on profit plus 2.65% on dividend payment, then dividend payment is tax exempt due to the NHR status.

How long until you run into problems in Portugal when there is no substance in Cyprus? Simply moving to Cyprus fixes a lot of problems.

 

[Horeskal]

Hello, im the same or similiar boat, im looking to sell BTC (dont trade it really, its a more long term hold), and was thinking about relocating to Portugal, but the uncertinaity scares me + i too have heard from many sides that the situation of crypto being tax free in portugal might change soon....

Would you be willing to exchange knowledge about this issue? What other options are you considering...?
I wrote about it here:

Bitcoin TAX "optimalization" via setting up a company in an offshore tax haven...?

Hello I have zero experience with (offshore) tax havens. I am, live and have tax domicile in an European country. My question is - is there a way to optimize (=pay less or ideally no tax) on ones (selling) of bitcoin/crypto...? The crypto would be legally obtained, one can prove its origin etc...

www.offshorecorptalk.com

 

[crypto7figs]

I am in the same situation, is there anyone who succeed with crypto + Portugal setup?