Why should Professional Stock and Crypto Traders move to Portugal?
So, you're a professional stock or crypto trader...and you're thinking about moving to Portugal. Well, you've come to the right place! In this post, we'll explore some of the reasons why Portugal is a great place for stock and crypto traders. Keep reading to learn more!
Portuguese economy is ideal for investors!
Portugal has been voted as the top destination in Europe for the fourth year in a row by WTA. In addition to this it is among the healthiest countries in Europe and the 4th best destination to live in retirement.
Who wouldn`t want to live in a country with more than 300 days of sunshine, excellent food and wine, and friendly locals?
Not to mention, the Portuguese economy is booming and is ideal for investors. The country has a strong focus on attracting foreign investment and has a number of tax incentives in place for businesses.
In addition, Portugal is a member of the European Union and the Eurozone, providing access to a large internal market.
Portugal has a skilled workforce If you're looking for a country with a skilled and educated workforce, Portugal is a great option. In recent years, Portugal has made significant investments in education, resulting in a high number of skilled workers. Additionally, Portuguese workers are known for their hard work and dedication, making them an asset to any business.
Skilled work force matters if as an investor you want to startup your business venture in Portugal.
A tax haven for investors!
So, what does this all mean for stock and crypto traders? Well, it means that Portugal is a great place to live and work. The country provides a stable and supportive environment for businesses and investors. In addition, Portugal offers access to a large internal market and a number of tax incentives.
Interest and Dividend Income Interest and dividends are taxed flat at 28% as well. Taxpayers have a choice of opting for the flat rate or their marginal rates that can vary up to 48%.
Due to double taxation treaties , investors from several countries can also avail tax credits for dividend and interest income on the lower amount of tax on such interest and dividend income in Portugal or tax paid in foreign country.
Capital Gains Tax
Capital gains are taxed at a flat rate of 18% in Portugal. Apart from this shares held in micro and small companies are only taxed for 50% of the capital gains.
Crypto investors are in for a real treat as crypto transactions as of June 2022 are fully exempt from any taxation including capital gains. Portuguese law treats cryptocurrencies as a form of payment instead of seeing them as a form of income. This is why cryptocurrencies and crypto transactions in Portugal have no tax attached to them.
This makes Portugal a tax free haven for crypto investors. This is why crypto traders around the world have a preference for Portugal.
Portugal Non-Habitual Resident (NHR) Program If you are a crypto trader and you have not been taxed in Portugal in the last 5 years then you can take advantage from the non habitual tax regime!
Benefits of non habitual tax regime include
* Special tax treatment for 10 years
* Almost all foreign income will be treated as tax free earning
* 20% flat rate on Portuguese income
* Gift and inheritance treated as tax free
* No wealth tax
The Portugal Non-Habitual Resident (NHR) program is a special tax regime for foreign investors who move to Portugal. Foreign investors can benefit from the NHR by carefully choosing how they can enter into Portugal.
How to move to Portugal as a trader?
If you're interested in moving to Portugal as a professional stock or crypto trader, there are a few things you need to do.
First you will need a visa. Traders can apply through several different visa schemes
* Portugal golden visa scheme
* Portugal D7 visa
Portugal Golden Visa Scheme
Portugal's golden visa scheme is also known as the residence permit for investment activity. It offers a path to citizenship for foreign investors.
The scheme was launched in 2012 to bring in much needed capital inflows after the 2008 global financial crisis. This scheme has been criticized by some who believe that it gives an unfair advantage to wealthy individuals. However, the Portuguese government has defended the scheme, arguing that it helps to attract much-needed investment and create jobs. Since 2012 the golden visa scheme has brought in €6 billion of capital inflows.
In order to qualify for this scheme
* Investors must make a minimum investment of 762280,000.
* Stay in Portugal for at least 7 days per year
Benefits of this scheme include
* Investors can apply for Portuguese citizenship in 5 years.
* Investors can get visa free access to 188 countries in the Schengen area.
* The visa program can be extended to family members.
* No tax liability unless you spend 183 days in Portugal.
Overall, the golden visa scheme appears to be having a positive impact on Portugal's economy, and it is likely to continue to be popular with foreign investors in the future.
Portugal D7 Visa The D7 visa can become your roadway to Portuguese residency. This visa is valid for 2 entries and allows the holder to stay in Portugal for 4 months. Family members of the visa holder are also entitled to residency status under the family unification statute.
The key eligibility of this visa is to prove that you have a passive source of income such as pension, rental income or investment income.
The applicant must be able to prove
1. Monthly income of €7620
2. Advised to hold 12 months worth of income with a Portuguese bank
The benefits of the D7 visa include
* Live, work and study in Portugal
* Visa free entry in to Schengen area
* Tax benefits through NHR program
* Family also eligible for visa
Portugal is an attractive destination for professional stock and crypto traders due to its many tax advantages. There are a few different visa schemes that traders can apply for, and the Portugal Non-Habitual Resident program offers special tax benefits for foreign investors who move to Portugal. With so many reasons to move to Portugal, it's no wonder that so many professional traders are making the switch.