If you’re one of the many crypto investors who’ve been making gains in Portugal, you might want to sit down for this news.
From 2023 onwards, the country is planning to tax gains derived from the sale of crypto assets. Even for Non-Habitual Resident (NHR) holders. This new development will bring a significant change to the tax system in Portugal. And may impact how investors approach the market in the future.
In this article, we’ll dive deeper into what these changes mean and how they could impact you.
Changes to the tax laws
Some significant changes are happening in the tax laws for crypto earners in Portugal. If you’re one of the people who have been enjoying the benefits of the NHR tax regime, you’ll want to take note of these changes.
The gains from the disposal of crypto assets that have been held for less than a year will be taxed as a capital gain at a rate of 28%. This means that even if you’re an NHR holder, you’ll still be required to pay tax on these gains.
While this is undoubtedly bad news for crypto earners who have been enjoying the NHR benefits in Portugal, it’s not all doom and gloom. The good news is that if you’ve held your crypto assets for over a year, then tax implications won’t be as high. In this case, Portugal may still be a better option than other places that have harsher tax laws.
So, while these changes may seem like a step back for crypto earners in Portugal, they aren’t necessarily a reason to pack up and leave. As long as you’re seeking advice from expert accountants, like the team at RHJ Accountants, your gains can be managed.
However, if you’re looking to dispose of your assets soon, it may be worth considering other tax-friendly options.
Is Portugal still a good option?
With the new tax laws, many crypto earners may be reconsidering whether or not Portugal is still a good option. Unless you have held your assets for over a year, the gains you derive from the sale of crypto assets will be taxed in Portugal. Even having the NHR won’t help! This makes Portugal less attractive for investors, as the tax implications are simply too high.
So, what are your alternatives? One option that is worth considering is relocating to the UAE. This is because there is currently no tax on crypto assets, which means you get to keep all the assets you earn. Of course, there are other factors to consider, such as visa requirements and the overall cost of living. But the lack of taxes on crypto gains makes the UAE a very appealing option for many crypto earners.
Ultimately, it is up to each individual to decide which country is the best option for them. However, it is clear that with the new tax laws in Portugal, many crypto earners will be forced to look elsewhere for a more favourable tax environment.
Visa options for Portugal
Crypto earners in Portugal have been able to make use of the Golden Visa program in recent years. The Golden Visa allowed individuals to relocate without having to live in Portugal for a long duration of time. However, with the recent changes to the Golden Visa, it may be worth considering other options.
As long as crypto earners can provide evidence of a stable income that meets the specific requirements of the type of visa they are applying for, along with substantial savings. Then they should be eligible to apply for other visa options in Portugal.
At our company, we work with experts in the visa application processes, such as our partners at RHJ Law. They are well-versed in the latest updates to the visa laws in Portugal. They would be happy to discuss your options during an initial meeting.
So we can help you relocate to Portugal. Whilst having a team of accountants on hand to keep you updated with any changes to the Portugal tax laws. There couldn’t be a better combination!
How RHJ Accountants can help
If you’re still considering relocating to Portugal as a crypto earner, then it is worth scheduling an initial meeting with our team. So you can understand the tax laws you will be introduced to.
In addition, if you require a visa for moving abroad, we can put you in touch with our lawyer to discuss your options.
Or if you’re considering other options, such as relocating to the UAE, then we can also help. We can review the options available to you and guide on the tax implications of each option.
In summary, whether you’re planning to relocate to Portugal or considering alternative options, our team can help you.
