Crypto license in Portugal

Crypto license obtainment in Portugal

Portugal might be the most crypto-friendly country in the world, as of 2022. The Portuguese Republic doesn’t tax the profit made by investing in cryptocurrencies and has recently established a very attractive framework for all sorts of crypto companies to come in.

Famous for its glorious navigators, its seafood dishes, its tasty vinho de Porto and it’s warm and peaceful climate, Portugal has always been a wonderful place. And it became even greater when the Banco de Portugal announced the Virtual Assets Service Providers framework.

The Banco de Portugal has taken the necessary time to develop a comprehensive framework, whose role is not to police the crypto businesses, but rather to support them and put them in a position for growth and success.

PORTUGUESE CRYPTOLICENSE OPPORTUNITIES

The Portuguese Cryptolicense in 2022 gives its holders the following opportunities:

  • To exchange some tokens for others, as well as for fiat currency;
  • Provide services for storing virtual assets in e-wallets;
  • Transfer tokens between user accounts;
  • Trade virtual assets.

What are the cryptocurrency regulations in Portugal?

The Portuguese law officially follows EU regulations on cryptocurrency. Gains from buying or selling cryptocurrency are not subject to VAT. Aside from this, there is no other specific legislation on cryptocurrency. 

The official treatment of cryptocurrency from 2016 can be found here (in Portuguese). The legal status of cryptocurrency in Portugal is that cryptocurrency should be treated in exactly the same way as any other currency in Portugal. This was clarified in a statement by the Portuguese tax authorities given to a company that was planning on mining bitcoins in Portugal.

With zero taxes for crypto traders and miners, Portugal could become a CRYPTO tax haven.

Portugal crypto license

Portugal Non-Habitual Resident (NHR) Program and Cryptocurrency

Many professionals considering moving their tax residency to Portugal are able to benefit from the non-habitual tax regime (NHR). This allows individuals to have certain tax benefits over a ten-year period if structured correctly. Portugal taxes for US expats, and all nationalities for that matter, are very favorable. 

Company registration in Portugal

The standard company registration procedure consists of several steps. There is a simplified company registration procedure that you can also make use of. The simplified procedure will shorten the registration time but it contains the same steps anyway.

The central document required for company registration in Portugal

The document that you have to prepare prior to applying to the registrar is your company Articles of Association. We will happily assist you in drawing up this document.

It has to contain the following information:

  • Company name in the Portuguese language;
  • The company owners’ names, nationalities, and countries of residence;
  • The sphere of the prospective business;
  • The rights and responsibilities of the company managing directors;
  • The share transfer procedures and other nuances related to company ownership shares;
  • The voting rules and details of other decision-making procedures.

You will need a charter capital of at least 5,000 EUR and minimum two company constitutors in order to register an LDA business entity in Portugal. We recommend that at least one shareholder should visit Portugal. However, you can have the company registered remotely via issuing a power of attorney in the name of a trusted agent.

The official procedure of setting up a company in Portugal

The company registration procedure consists of seven main steps.

  1. Suggest a company name and register it with the Portuguese Trade Register.

You can choose the name that you want for your company. In this case, checking the name for availability will take the state agency mentioned above about 15 business days. In addition, a state duty has to be paid. Then you will have three months to proceed with the company registration under this name.

You can also choose from company names that have been already approved. In this case, you can proceed to the next step immediately. Besides, it is going to be less expensive.

  1. Appoint an official representative of yours who will sign all the registration documents.
  2. Make a draft of your company Articles of Association.
  3. Open a bank account and deposit the company charter capital there

In certain cases, the charter capital may come in the form of property rather than money. The property then has to be assessed by an independent assessor. Only with his or her official conclusion can you proceed with the company registration.

  1. Submit the incorporation documents: the company Articles of Association signed by all founding members. It is recommended that all company constitutors be present in Portugal in person at the moment of submitting these documents.

Non-residents in Portugal (both private individuals and legal entities) have to have a personal Tax ID. The EU citizens can acquire a Tax ID directly from the tax administration while citizens of all other countries will have to file a special request.

In order to acquire a Tax ID you will have to have somebody in Portugal who holds such an ID. This person will act as your introducer to the Registrar. This is mandatory and without an official introducer, a Portuguese Tax ID cannot be obtained. You can solve this issue in the following alternative ways:

  • Use the tax representative service that our company provides (included in the total service price);
  • Use some other company’s service at an additional cost;
  • Acquire a Portuguese resident status before registering a company in the country. If this is what you desire, we will gladly help you become a tax resident in Portugal.
  1. Register the company with the Commercial Entities Register. Any of the company owners or directors can submit the necessary documents to this agency. It can even be a representative of the company not directly connected to it but he or she must have a Tax ID. The following documents need to be submitted:
    1. The certificate indicating that the company has been registered under a specific name;
    2. Corporate documents including the Articles of Association;
    3. Additional documents, if required. For example, the assessor’s official conclusion is case a piece of property is used as the charter capital.
  2. Register as a taxpayer (all companies in Portugal have tax numbers) and as a social security payer.

Registering a company in Portugal usually takes not more than ten business days.

Personal documents required for Portuguese company registration

You will have to submit the following personal documents before the registration procedure can be launched:

  • Your foreign passport (a legalized copy of);
  • Proof of address (such as a utility bill, for example);

After the company is registered our experts prepare full package of documents for crypto license obtainment.

Please, contact our specialists for more information about fees and personal requirements for your project.