Crypto license Portugal

Tax-free jurisdiction for crypto license in Portugal is one of the most attractive and profitable thanks to the new fiscal incentives introduced by the country’s government. The decision was made to improve the economic situation, as well as to make it a leader in the fintech industry. By abandoning the income tax that was levied on individuals receiving income from the sale of cryptocurrency, the country’s leadership created more favorable conditions for the development of this business. Thus crypto traders can conduct financial activities without paying fiscal fees.
Years Experience

The main advantage of Crypto license in Portugal

Many traders and investors choose Portugal not only for geographical reasons, but also because of the tax-free regime established in the country for digital asset holders. Taxation of cryptocurrency transactions currently in Portugal:

  • VAT is not charged to physical persons;
  • Companies providing services in crypto-currency transactions are taxed on profits at a rate of 28% to 35%.

Regulation of crypto-assets in Portugal

Cryptocurrencies are largely seen as an alternative payment method with contractual nature, which is the result of a private agreement between participants in cryptocurrency transactions, and with internal characteristics, which to some extent repeat the main features of traditional money storage of value, unit of account and medium of exchange. In general, cryptocurrencies are not supported by the Portuguese government or the Central Bank, but are treated as financial instruments in certain cases. Cryptocurrencies are also considered for their functionality.

Regulators deal with utilite tokens and securitly tokens, which are usually sold through ICOs. They can be distinguished by their distinctive function, since the former are largely related to consumption and the latter to investment. That is why the issue of regulation of these technologies has become an important topic for the attention of the relevant authorities, especially the Central Bank, the Portuguese Securities Office (CMVM) and the ASF. The CB has issued a number of public statements and warnings on cryptocurrencies in line with the regulatory practices of other eurozone central banks and European regulators such as the ECB and the EBA.



Financial regulation


Procedure for obtaining crypto license in Portugal

In order to obtain a crypto-sharing license in Portugal, a number of requirements must be fulfilled, which includes such items registration of the company in Portugal, economic presence in the country in the form of a local physical office with employees, detailed business plan and/or official document, risk management, aml compliance, and kyc procedures, documents describing internal risk management policies in accordance with local anti-money laundering laws, certificate of no criminal record from all participants (shareholders, directors, compliance officers) not older than 3 months, significant equity, in Portugal, there are no border restrictions or obligations to declare assets in cryptocurrency. there is no separate obligation to report, in the case of payments in cryptocurrency above a certain threshold, with the exception of transactions in which an obligated person subject to the portuguese aml act may participate, in such a case, the person would have to report suspicious transactions or activities regardless of the amount involved.