Golden Visa, Brexit, NHR and Cryptocurrency — a perfect plan?

Golden Visa and Brexit…

With Brexit, UK nationals no longer benefit from the European right of free movement and created the necessity to look for other options like a Golden Visa. The Trade and Cooperation Agreement establishes a distinction between short and long term stays. British nationals only benefit from free entry into Portugal for tourism, for 90 days every 180 period. Although there are other options such as the Income visa, or Golden Visa.

Golden Visa requires what kind of investment?

The investments regarding the Golden Visa acquisition can have a financial focus, or it can be through real estate investment (acquisition of at least one property). Also an option is the creation of jobs, creation of companies or strengthening their social capital. Or even through support of artistic initiatives, technological development, or scientific research activities. Golden Visa is one of the most searched, due to its amplitude of investment options.

Golden Visa or NHR regime?

Portugal has the NHR regime — Non-Habitual Tax Residency, a special tax regime that aims to attract to the country professionals who exercise activities of high added value or intellectual property. Or pensioners who are seeking to see reduced their tax burdens in Portugal, changing their main residency to Portugal. This regime is different from the immigration process, as was already said, but also from the Golden Visa regime.

Golden Visa and NHR avoid double taxation?

Regarding taxpayers who obtain income from abroad, they do not pay taxes in Portugal provided that the income is taxed in another country. This also applies to Golden Visa regime. In case of a pensioner, the income will be subject to a tax rate of only 10% in Portugal. In terms of passive income, taxation may even be inexistent in Portugal! But if your goal is to create a connection to Portugal without staying for long periods in Portuguese territory, the best way is perhaps apply for a Golden Visa.

Cryptocurrency an investment valid for a Golden visa application?

Special treatment will be given to cryptocurrency. In fact, at a worldwide level, Portugal is one of the few countries that do not tax digital currencies because it is the understanding of the Portuguese Tax Authority that cryptocurrencies cannot be considered “currencies”. Without any changes announced in the State Budget for 2021, the lack of rules in tax law will remain. Therefore if the goal is to invest in Portugal perhaps it will be safer by applying to a Golden Visa.

Learn More About Relocating to Portugal

Caiado Guerreiro is a multi-jurisdicitonal full service law firm headquartered in the heart of Lisbon. The immigration team provides legal advice to international clients, including large corporations, governments and private individuals. The practitioners often deal with complex legal questions and restructuring projects, and maintain excellent relationships with the Foreigners and Borders Service and other public bodies.

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