Crypto tax in Portugal

[hatsuri]

Hello,

Is it true that you do not need to pay any taxes on crypto profit gains in Portugal? Does it mean I can just go there open the bank account, transfer EUR from a cryptocurrency exchange and pay no tax on that money in Portugal? Does anyone here have a practical experience regarding this case?

 

[toums]

1) You have to be tax resident in Portugal to be eligible to the tax free on crypto.
2) Depend on your citizenship / previous residency (exit tax or any other BS)
3) have to hold AT LEAST 365 days any tokens before selling (for tax free eligiblity)
4) GOOD LUCK to open a bank account in Portugal AND cash-out big amount of crypto there. Most bankings there still in middle age steps and clearly NOT for crypto.
5) Cashing out in your tax residency country and another (offshore) countries are 2 different topics (and possibilities).

 

[jon1234]

Beware - to my understanding you MUST cash out your crypto before ending your tax residency, else it will be a deemed disposal at 28% tax

 

[toums]

Beware - to my understanding you MUST cash out your crypto before ending your tax residency, else it will be a deemed disposal at 28% tax

NOT correct.
28% DOESN'T apply if :
- You hold it already for 365 days+
- It's already swap on stable coins.

 

[jon1234]

Have you validated this with a lawyer?

If you end your tax residency and you still hold crypto, then the remaining value is taxed at 28%. The exemption is only when you sell for fiat.

As for stable coins, they are subject to the same rules as BTC. Must be held for one year and then sold for fiat to gain the exemption.

I've only had one legal opinion on this so would be great to see other interpretations.

 

[toums]

Have you validated this with a lawyer?

If you end your tax residency and you still hold crypto, then the remaining value is taxed at 28%. The exemption is only when you sell for fiat.

As for stable coins, they are subject to the same rules as BTC. Must be held for one year and then sold for fiat to gain the exemption.

I've only had one legal opinion on this so would be great to see other interpretations.

Yep. If you held for more than 365days, sold or not, there is no exit tax. In addition you have still the 'loophole' by changing in usdt/usdc the assets you held for less than 365 days. But in that second case, you have to keep it like for another year.

Moreover, if you move to another EU country or with a country with exchange of tax information, not exit tax apply. (same for stocks)

So basically, it's quite easy to bypass that.