Portugal / UK Crypto Tax Status Advice

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Matrix2538

New member
I am moving to Portugal in January from the UK. I have now signed a lease on a rental apartment in Portugal and will have tax residency shortly. I invest in Crypto Currency. Once i am a Portuguese tax resident, I wondered if i could sell some crypto assets into a stable coin such as USDC, taking advantage of the current 0% tax on Crypto gains in Portugal, before the rules change in January to 28% tax on anything held less than a year.

How would my tax status be deemed in the UK by HMRC? As soon as i become tax resident in Portugal, do i stop being a tax Resident in the UK as long as i spend more than 183 days in Portugal?
 

Larin

New member
From the UK perspective if you leave part way through the year (UK tax year is April to April) you will be considered for 'split-year treatment': Tax on foreign income'

You can get all of the relevant details from the link above, but to summarize, just don't come back to the UK for a tax year. Provided you can fulfill the above criteria, you cease to be a UK tax resident the day you leave the country (the day you indicate on your P85 form): Get your Income Tax right if you're leaving the UK
 

khinkali

Entrepreneur
@Matrix2538 it is not as simple as 183 days. Depending on your UK ties you can even be resident with only 16 days in the UK. That is the extreme case and for most people it's somewhere between 16 and 183. Fortunately the rules, while a little complex, are clearer than in most countries.

Also keep in mind that if you return to UK tax residence within 5 years, you might be classed as having been "temporary no resident". This means that gains made abroad from assets held before you left can be subject to CGT.
 

Larin

New member
Yes @khinkali is absolutely correct. in fact, to be safe it should be 5 full tax years after you leave, so the countdown will start April 2023 for you. If you go down this route there is no coming back for a while. And 16 days is very much the upper limit in some cases in the first 3 (tax) years.
 

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