Golden Opportunity for Crypto Expats
Portugal’s golden visa has become even more attractive for expats trading cryptocurrencies.
Portugal has always attracted expats, with 60,000 Britons already living there.
The country has become even more popular in recent weeks. The government eased the conditions for golden visas and expatriate crypto traders discovered that no tax was levied on their digital currency profits.
These factors only add to the appeal of Portugal, which has granted more than 10,000 golden visa applications since the program launched in October 2012, raising a welcome boost in the £5.5bn arm. sterling of expatriate investment in the economy.
Read on to learn more about the new golden visa rules and capital gains taxes in Portugal.
You should always seek regulated financial advice in Portugal to ensure that you are making the best decisions.
Portugal’s golden visa program is considered one of the most attractive in the world for expats.
- The visa offers a range of affordable investment and residency in Portugal
- Visa holders maintain their status by spending at least seven days a year in Portugal
- The visa covers a family, not an individual
- UK expats enjoy unlimited visa-free travel within the European Schengen area
- Expats can apply for Portuguese nationality after holding a golden visa for five years
- Crypto Traders Pay No Capital Gains Tax
Add to that the lifestyle benefits:
- Warm weather
- Low cost of living
- Charming locals
- A relaxed way of life
- Easy travel distance to UK and Europe
The biggest change is where expats with golden visas can live.
The government revised the list to exclude the capital Lisbon and well-populated cities like Porto and Setubal.
The visa only allows expats to purchase tourist property as a residence on the mainland or vacation islands like Madeira and the Azores. The minimum real estate investment is £295,000 (€350,000) if restoring a house or £421,000 (€500,000), although a 20% discount applies to residential areas “within low density. These areas are more or less the whole country, minus a narrow strip around the coast.
The map shows the golden visa residential real estate investment zone in red and the excluded zones in blue.
However, expats with a golden visa can purchase commercial property in both areas.
Along with home buying rules, most Portugal golden visa investment levels have increased.
- Capital transfers amount to £1.25m (€1.5m), up from £842,000 (€1m)
- Business investment increases from £295,000 (€350,000) to £420,000 (€500,000)
Arts contributions remain at £210,000 (€250,000).
As a tax resident in Portugal, expats pay income and interest taxes according to local rules.
However, the golden visa comes with two tax benefits for expats:
- Cryptocurrency traders do not pay capital gains taxes on their profits, although trading crypto as a business is taxed. A certain tax is due if expats pay for goods and services in Portugal with cryptocurrency
- Pension income from abroad is taxed at 10% for 10 years
- The golden visa comes with a work permit which covers starting and running a business as well as working for an employer.
- Full taxes in Portugal are due if an expat becomes a resident, which means spending more than 183 days a year in the country
Fast broadband speeds and a coworking culture can seamlessly connect digital nomads to the rest of the world, fulfilling a critical need for working expats.
The golden visa is ideal for expatriates who wish to travel freely in Europe or who do not wish to have a permanent residence in the country.
The good news is that UK expats residing outside the European Economic Area (EEA) can apply for a golden visa for Portugal as an individual or for a family.
The opportunity arose with Brexit, when Britain left the EU.
Expats often vote Portugal a popular destination thanks to the warm weather, cheap food, alcohol, and relaxed lifestyle.
The Algarve in the south of the country is where most British expats tend to live. However, much of this stunning coastline is now outside the permitted home buying zone for Golden Visa holders.
For this reason, many expats have turned to the splendor of the Douro Valley. This famous wine region follows the meanders of the Porto River inland towards the coast and the town of the same name.
For retired Britons, the British state pension is paid in Portugal and adjusted each year according to the cost of living.
The currency is the euro and the exchange rate is 1.19 euro for 1 £.
spain Start-up act is passing through the Parliament of Madrid.
The law includes a new opportunity for expat digital nomads who want to work from Spain but don’t want to have to apply for a work permit.
The Digital Nomad Visa allows expats to live and work remotely from Spain without a work permit. However, self-employed rather than employees can only earn 20% or less of their annual income in Spain.
If approved by Parliament, the visa will last for 12 months and will be renewable every two years.
Living in the Canary Islands and the Balearic Islands is permitted under the conditions of the visa.
According to the law, a digital nomad is a person from outside the EEA who works remotely for companies located outside of Spain.
Spain offers visa holders an income tax rate of 24% for the first 183 days (six months) of the visa term.
Expats should take advice on how the visa might affect their tax status in Spain before applying.
The law on start-ups includes several measures to encourage business creation and attract foreign talent.
The golden visa is a generic term designating a residence or work permit granted under advantageous conditions.
Most countries offer some form of golden visa to high net worth investors, entrepreneurs and retirees.
Portugal’s golden visa is considered one of the most generous and Spain’s new digital nomad visa will also be welcomed by expats.
Yes. Anyone holding a Portuguese Golden Visa can apply for citizenship after holding the visa for five years.
Portugal’s golden visa program was opened for applications in October 2012 and remained virtually unchanged until January 2022, when the government opted to increase investment thresholds at all levels and restrict where golden visa holders can buy or build a house.
No. The golden visa application stipulates that expatriates must buy a house or invest in Portugal. Renting accommodation is not permitted if the investment criteria are not met.
The start-up law is in the process of being passed by the Spanish Parliament, so it is not guaranteed that the bill will become law.
No, the golden visa has been open for applications for almost 10 years and the government has not announced any intention to close the program.
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