The submissions are to be made online by filling the forms provided on the Banco de Portugal site, the other documents must as well be submitted digitally, online. In the event of a serious or repeated violation of legal or regulatory provisions designed to prevent money laundering and terrorist financing. In doing so, Portugal hopes to promote the growth of the crypto industry within Portugal. There are many nuances that determine whether an ICO is subject to securities regulations. Whereas the majority of countries do not make the usage of bitcoin itself illegal, its status as money (or a commodity) varies, with differing regulatory implications. You can find the official explanation here (it is written in Portuguese, though): https://www.loc.gov/law/help/cryptocurrency/world-survey.php Gains from the sale of these cryptocurrencies in Portugal, like any other income, may be subject to tax in the beneficiary’s country of residence. Let us take a detailed look at Cryptocurrency legal status across various countries, 1. Can the Banco de Portugal refuse the registration? The projected geographical implementation; The organizational structure and the human, technical and material resources allocated to the exercise of each activity with virtual assets, including a detailed description of the computer architecture associated with the development of such activities; A forecast of the total amount of operations associated with each of the activities with virtual assets, for the first three years of activity; The expected date for the start of activity; The application for registration is not accompanied by all the necessary elements and documents; It is clear that the fact to be registered is not stated in the documents submitted; The instruction of the application suffers from inaccuracies or falsehoods; Verify that none of the requirements on which access to activities with virtual assets depend; Check for the risk of serious non-compliance with laws and regulations designed to prevent money laundering and terrorist financing. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.” as is referred to in Investopedia. Businesses operating in Portugal that receive income from cryptocurrency trading or any other activities are still subject to progressive rates for personal income tax. No, cryptocurrency is not considered legal tender. A presidential decree on July 3, 2018 enacted mandates to encourage the development of blockchain and cryptocurrency industries in the nation. In the turbulent time of the COVID-19 pandemic, many countries are opting for digitalization and this project could put Portugal ahead of those efforts. Accordingly, Portugal has established itself as an appealing place to start a crypto-related business. The currency in Portugal is the Euro but you can be paid in crypto currency and pay for goods in Portugal using visa cryptocurrency (crypto visa cards) – it’s a win win for crypto traders and investors. According to Portuguese media sources, the PTA is quoted as saying: “An exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.”. Specifically, the PTA stated that crypto transactions are not subject to capital gain taxes or value-added tax (VAT). In Portugal, each ICO is analyzed on a case-by-case basis. In 2019, Portugal’s Tax and Customs Authority declared that mining rewards and crypto payments are not subject to VAT in Portugal. Another decree on September 2, 2018 established a state blockchain development fund, legalised mining, and made trading legal and tax free. The legal status of cryptocurrency in Portugal was clarified in a statement by the Portuguese tax authorities (Autoridade Tributária e Aduaneira) given to a company that is planning to begin mining bitcoins in the country. Recent clarification to cryptocurrency law in Portugal. Secondly, taxpayers who trade in crypto as professionals or business activity are still subject to the same taxes. Per the Law Library of Congress, “A draft law on digital financial assets was published by the Ministry of Finances on January 20, 2018, and introduced in the State Duma on March 20, 2018. However, since there is no concrete legal framework for cryptocurrencies in Portugal, many queries have been raised concerning their legal framework, in particular regarding their taxation in Portugal. The policy also favors crypto miners. Belarus. There are no specific laws in Portugal regarding virtual assets, cryptocurrency exchanges, e-wallets & virtual asset operators. The Central Bank of Kenya has warned that cryptocurrency is risky and is not legal tender Cryptocurrencies are not illegal It’s currently unregulated, but the nation’s treasury secretary had been tasked with drafting cryptocurrency regulations in July 2018 A small resume of CRYPTOCURRENCY & BLOCKCHAIN LAW IN PORTUGAL. Yes, the Portuguese central bank can refuse or request more documents related to the registration, even cancel it. In our opinion this a quite broad definition that compromises all digital assets, such as cryptocurrencies, NFTs (non-fungible tokens), any other similar. According to Portuguese media sources, the PTA is quoted as saying: “An exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.”. Here is a generic list of the documents required, more will be applicable. Portugal’s tax laws concerning cryptocurrencies are clear. … Portugal’s policy is to stimulate the economy by aiding crypto companies in their testing stages. On the other hand, these tests also provide important information and data that will help the Portuguese government draft effective laws concerning cryptocurrency. Any entity (individuals or companies/business), that is incorporated in Portugal to carry out any activity related to crypto or virtual assets; Other Individuals or companies/businesses, due to the exercise of activities with virtual assets/cryptocurrencies, are required to submit a declaration of commencement of activity with the Tax and Customs Authority. We are using cookies to provide statistics that help us give you the best experience of our site. a) Draft articles of association or amendments to the articles of association, which contain an express reference to activities with virtual assets that the applicant proposes to provide; b) Address of the professional domicile or head office and, when different, of the central administration, indicating the respective contacts; c) Program of activities and business plan, indicating at least: d) Description of the internal control mechanisms to comply with legal or regulatory provisions aimed at preventing money laundering and terrorist financing, including an assessment of the risks associated with its projected base of customers, products and services, distribution channels to use, and predicted geographical areas of action, as well as measures to mitigate them; e) Identity and respective supporting evidence of shareholders, beneficial owners and members of the management and supervisory bodies, and other persons in senior management positions; f) Evidence of the suitability and competence of the persons subject to assessment; g) Proof of holding the share capital and the origin of the funds used for its subscription; h) Other elements specified in sectoral regulations. In Portugal, cryptocurrencies do not have legal tender and thus do not qualify as fiat currency, nor are they treated as “money” (whether physical or scriptural) or, in principle, “electronic money”. The Central Bank of Kenya has warned that cryptocurrency is risky and is not legal tender Cryptocurrencies are not illegal It’s currently unregulated, but the nation’s treasury secretary had been tasked with drafting cryptocurrency regulations in July 2018 Designed and Maintained by Tech-Critic. Transfer of virtual assets. However, not all the European Union (E.U.) The Man: Why Cryptocurrency Is the New Rock & Roll The Oregon-based rock band, which launched its own coin last month, explains how artists can use crypto to … The registration has been obtained by means of false or inaccurate statements or other illegal means, regardless of the sanctions that may be applicable to the case; Lack of supervening requirements on which the granting of registration depends; The entity has ceased to exercise activities with virtual assets or has reduced or maintained them at an insignificant level for a period exceeding six months. Spain: Legal On March 4, 2020, the Supreme Court has made cryptocurrency legal and has uplifted the ban on cryptocurrency transactions throughout the nation. The Non-Fungible Token Bible: Everything you need to know about NFTs, Changes in the Golden Visa Program for 2022, Family, minors rights and Inheritance Law, Entities that carry out any activity with virtual assets/ cryptocurrency. © Copyright 2020 All Rights Reserved | India: Cryptocurrencies are under a grey area here and RBI-India’s central bank has levied a banking ban on cryptocurrencies, so you cannot buy cryptos through India’s banking system. As a result, although there has been increasing regulation of cryptocurrency within the European framework, the current position in Portugal is that income deriving from cryptocurrency is not taxed unless it is generated in the exercise of a professional activity, as opposed to by way of investing personally/privately. The following examination provides a cursory overview of the tax treatment of cryptocurrencies with respect to both natural and legal persons in Liechtenstein. Indeed, this policy makes Portugal one of the best places worldwide for creating a crypto-related business. Portugal’s stance on crypto currency makes it very appealing for crypto traders and investors. In conclusion, cryptocurrencies in Portugal are only taxable if you do it as a professional trading activity and therefore you need to open an activity as a trader and pay taxes according to your profit, otherwise they are considered non-taxable in Portugal due being unable to fit in any category. The legal status of bitcoin (and related crypto instruments) varies substantially from state to state and is still undefined or changing in many of them. Crypto transactions are exempt from these taxes even though they are analogous to a “means of payment.” However, there are a few exceptions. Freeman Law is where clients turn when the stakes are high and the issues are complex. The company or individual dealing with virtual assets may also, declare that he/it no longer wants to have activities linked with virtual assets, therefore forfeiting the registry. This procedure is not yet final, since the procedure is still in the phase of public consultation. Later that year, another press release was issued which focused on the legal aspects of holding ICOs in the state of Portugal. The members of the management and supervisory bodies and other persons who occupy top management functions in the entity to be registered to attach to the application for registration the declaration prepared and duly completed for those purposes. Noting the importance of new technologies for economic development and the restructuring of economic structures, the Portuguese government provides testing to capitalize on the new opportunities that cryptocurrency offers. Cryptocurrencies as Property . Two important elements that may implicate securities law are (i) if the tokens may be considered documents representative of one or more rights of a private and economic nature; and (ii) if, given their particular characteristics, they are similar to typical securities under Portuguese law. In 2019, the Portuguese Tax & Customs Authority (PTA) declared that buying or selling cryptocurrency is tax-free in Portugal. Portugal will not tax Cryptocurrency gains POLITICS The biggest news agency in my country, Portugal, just released the information that or Country’s Taxing Entities will not charge any fee related to profits obtained due to Cryptocurrency’s trading. Banco de Portugal will reply to the registry application within 30 days of the submission, otherwise, the request will be considered as accepted. Designed and Maintained by, https://cointelegraph.com/news/portugal-chases-crypto-friendly-status-with-new-free-zones-for-tech, https://cointelegraph.com/news/portugal-unveils-free-zones-for-emerging-technologies-in-digital-action-plan, https://cointelegraph.com/news/no-tax-for-you-why-crypto-traders-and-miners-might-head-to-portugal, https://www.forbes.com/sites/kellyphillipserb/2019/09/19/portugal-tax-authorities-clarify-that-buying-or-selling-cryptocurrency-is-tax-free/?sh=2e3ee57577e3, https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/portugal. Bitcoin Accepted Here United States. On the other hand, tokens that are not financial instruments are not subject to securities regulations. The objective of the AMLDV reinforce and control money laundering procedures within the EU as well as terrorism financial support, how the EU intends for the Directive to take effect. Binance is based in Malta, as is Tron and hundreds of other cryptocurrency projects. Portugal crypto regulation rank. Furthermore, according to another binding opinion from the Portuguese Tax Authorities, no duty VAT is payable on these operations due to a VAT exemption. If you’re dealing in crypto, then you should take a look at what’s going on in Portugal at the moment. Returns on investments include (a) a grant to the right to any type of income, like the right to receive earnings or interest; or (b) undertaking certain actions, by the issuer or a related entity, aimed at increasing the token’s value. This policy favors retail traders, who can benefit from a zero-VAT tax policy. The economy in Portugal is stable and growing In early ... Portugal: Legal Bitcoin has no specific legal framework in Portugal. No tax on cryptocurrency activities. Registration procedures with the Banco de Portugal If you or your company fall under any of the above categories and you require to register with the Banco de Portugal by submitting a registration application with the Bank of Portugal, sending the notification model provided by the Central Bank, duly completed and accompanied by all the documentary elements specified there. If you wish to know more about the taxation of cryptocurrency in Portugal and the EU you can also read our article about it, here. Legal tender is a form of money that must be accepted for the payment of debts. The statement, which was subsequently published in the Journal de Negocios reaffirms that cryptocurrency should be … The law 83/2017 de 18 de Agosto, with establishes as companies or individuals dealing virtual assets the following: My company is dealing with cryptocurrency in Portugal, what is the consequence? Or manage instruments that control, detain, save or transfer said assets, private. 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