Hold Bitcoin and acquire Portuguese/EU Citizenship (Golden Visa path)

[krispy]

Seems like an interesting option. You invest 500k into the fund which is eligible for a Golden Visa program in PT. It's not yet clear to me if it's possible to invest using Bitcoin directly or if you must go via fiat route.

Here's the catch;

• 10% performance fee
• 2% annual fee (10k / year)

Depending on each individuals situation it can still be worth it.

Source:
https://twitter.com/x/status/1815683546670858685
Provider: Home - Unbound

 

[JohnnyDoe]

Immediately discard those who promote a golden visa as a citizenship program: it's deceiving, not serious and a big red flag.

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[JosephLL]

There is no way you can enter the procedure without SoF on that 500k.

 

[krispy]

JohnnyDoe said:
Immediately discard those who promote a golden visa as a citizenship program: it's deceiving, not serious and a big red flag.
Click to expand...

Fair point, I've edited the thread to make it less misleading.

 

[JosephLL]

Usage of the terms "crypto" and "web3" are a a definitive signal that your investment will be converted into a rainbow of shitcoins and in tha span of 5 years that means a certain 90% loss. If you are lucky.

 

[Dreamy]

Golden visa is not a passport! You can get golden visa in a lot of countries, but it's not a passport!

 

[polonieth]

Convert your 500k into FIAT
Invest 500k into a fund (Blackrock ETF) so lose custody of your coins
Obtain residence
Maybe get citizenship after five years.

Viable for some I guess.

 

[toums]

Golden visa or not, don't forget that you need to pass official Portuguese language test to qualify for the citizenship (after 5 years minimum of regular residency in Portugal)

Portugal has one of the best tax incentive (for crypto capital gain) actually in Europe, but local banks and administrations are still at the Middle Ages regarding BTC / crypto industry (almost same with Malta). For golden visa / NHR / residency for crypto yes.. put-cash out locally your crypto there.. NO.

 

[krispy]

toums said:
Portugal has one of the best tax incentive (for crypto capital gain) actually in Europe,
Click to expand...

Problem with their crypto capital gains "incentive" is that it's not intentional but rather a loop hole that hasn't been filled yet.

 

[intlman]

JosephLL said:
Usage of the terms "crypto" and "web3" are a a definitive signal that your investment will be converted into a rainbow of shitcoins and in tha span of 5 years that means a certain 90% loss. If you are lucky.
Click to expand...

More like 99.999%.

 

[pepelepew]

krispy said:
Problem with their crypto capital gains "incentive" is that it's not intentional but rather a loop hole that hasn't been filled yet.
Click to expand...

What is the loophole ? Seems like long term gains are not taxed (unless requalified as income from trading) ?

 

[krispy]

pepelepew said:
What is the loophole ? Seems like long term gains are not taxed (unless requalified as income from trading) ?
Click to expand...

I just checked again it seems they changed the law so they are not taxed if you hold for longer than 1 year. Last I was checking (few years ago) they didn't get taxed because they weren't considered currencies or financial assets meaning they couldn't be taxed. Good to know!

 

[toums]

krispy said:
Problem with their crypto capital gains "incentive" is that it's not intentional but rather a loop hole that hasn't been filled yet.
Click to expand...

There is no loop hole anymore. Until 2022 tax year, you didnt have to declare anything for crypto capital gain in Portugal. From 01/01/2023, as Germany, you have to hold at least 365 days to be tax free, otherwise it's 28% tax.
Converting to stable is not taxed.
You still have to declare your crypto gain of your tax from this 2023 calendar year. You have specific sections in the tax return to fill your crypto capital gains exempt of tax (more than 365days holding) and another section for the taxed capital gain (less than 365days).

It's pretty clear actually.

 

[pepelepew]

toums said:
There is no loop hole anymore. Until 2022 tax year, you didnt have to declare anything for crypto capital gain in Portugal. From 01/01/2023, as Germany, you have to hold at least 365 days to be tax free, otherwise it's 28% tax.
Converting to stable is not taxed.
You still have to declare your crypto gain of your tax from this 2023 calendar year. You have specific sections in the tax return to fill your crypto capital gains exempt of tax (more than 365days holding) and another section for the taxed capital gain (less than 365days).

It's pretty clear actually.
Click to expand...

So does that mean if someone owns one btc wallet for long term holdings and other wallets where they did some small trades exchanging cryptos, they could cashout the long term holding wallet tax free, and not have the whole amount requalified as professional activity?

 

[JosephLL]

pepelepew said:
So does that mean if someone owns one btc wallet for long term holdings and other wallets where they did some small trades exchanging cryptos, they could cashout the long term holding wallet tax free, and not have the whole amount requalified as professional activity?
Click to expand...

Only if you hide the fact that wallets have the same owner. Why people assume the gov is that stupid? They will ask for: api keys to cex accounts AND xpub.

W1 : 100btc
Make a tx to W2 . New state:

W1: 99btc
W2: 1btc.

In the next 1 year interval, you fool around and create tax events with W2. Then you show up and try to cash out 99btc from W1 tax free. Not gonna work. xpub will show the suspicious 1btc tx . This kind of cash out works only in pristine cases: tx in from known address labeled as cex with a sof proof by api key from your cex account, NO TXs inside wallet for grace period. Pure hodl.

In other words: bend over and give up all your privacy.

 

[5K1PP3R]

so conclusion - I invest 500k EUR (8.21 BTC) today, I get golden visa in 6 months. If I learn Portuguese, I may get citizenship in 5 years. Suppose Bitcon doubles in value and my holding is 1m EUR. Now I want to sell and withdraw, do I pay Capital gains tax (CGT)?
Everything else is correct.

What about shitcoins? Can't you restrict your investment to Bitcoin?