If you’re looking to establish and or grow your crypto business within an EU jurisdiction, Portugal is one choice available to you. Businesses centered around cryptocurrencies remain at the forefront of entrepreneurial pursuits. In Portugal, such companies fall under the purview of the local regulatory authority, the Banco de Portugal (Central Bank of Portugal). While cryptocurrency-related activities are not prohibited, they do require a special license. To simplify the licensing procedure, the expertise of Q Wealth experts is here, and you can arrange a complimentary, fifteen-minute meeting or a paid, one-hour session with an expert in company licensing (currently 300 euros, reduced from 500 for a limited time).
Don’t wait to connect with Q Wealth pros to obtain a crypto license to set up and officially register your company in Madeira or mainland Portugal.
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Permissible crypto activities in Portugal
Companies established in Portugal or Madeira are free to engage in various crypto activities. This is what they are allowed to do:
- Offer specialized services for the seamless exchange of virtual assets, either amongst users or for traditional currency (fiat).
- Facilitate the effortless transfer of cryptocurrencies via wallet transactions and alternative methods.
- Assure the secure custody and skillful administration of cryptocurrencies, whether the assets belong to the company or are under management.
If you dream of starting a cryptocurrency business in Portugal, there’s one important thing you must do first: get a special license from the country’s Central Bank. After you have this special license, your business data will be added to the Registry of Virtual Asset Service Providers (VASP).
No doubt, a bank account is crucial for any business. To make things quicker and safer, you are welcome to open a corporate bank account with the help of Q Wealth seasoned professionals!
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with seasoned professionals on international banking and where it is best to open non-resident corporate accounts.
Crypto business landscape in Portugal: locations, taxation, and costs
The laws in Portugal allow foreign entrepreneurs to register companies and obtain licenses for crypto activities within the country. However, the taxes and requirements for setting up such businesses may differ depending on your company’s location and legal structure.
Here are the two popular choices for company structures in Portugal’s crypto business landscape:
- LDA – limited liability company
- SA – joint-stock company
The tax liabilities may vary significantly depending on where a company offering crypto services is incorporated:
- In Portugal, a cryptocurrency company follows a standard corporate income tax rate of 14.7%.
- On the other hand, a company with a license to operate within the Madeira International Business Centre (IBCM), a free trade zone, is subject to a lower profit tax rate of 5%.
With obvious tax optimization advantages in the Madeira Free Trade Zone, this business hub is the top preference for setting up international business structures.
For further details, you might want to check out Taxation Guidelines for IBCM Enterprises in Madeira and the Registration Expenses for Non-Residents.
How to get a crypto business license in Madeira?
To benefit from the special tax rules of the Madeira International Business Center, companies need to follow these steps for registering and getting a license. Here’s the general process:
- Pick a company name that follows the rules.
- Prepare incorporation documents for the company as well as information about its management team.
- Register it with the tax office and social welfare authorities in Madeira.
- Open a bank account for the company.
- Apply for a crypto business license (be sure to send your application in Portuguese in two copies to S.D.M., the official concession owner of Madeira’s IBC).
Branches of incumbent companies can also obtain a license for cryptocurrency activities in Madeira as long as they meet the requirements outlined in Articles 18º and 19º of the Regulation approved by Regional Regulatory Statute No. 21/87/M dated September 5, and Article 36º-A of the Tax Benefits Law.
When you apply for a cryptocurrency license in Portugal, be sure to include the following information:
- Company name
- Legal address
- Types of activities conducted using NACE codes (European Classification of Economic Activities)
- Amount to be invested in the business
- Number of anticipated job positions.
To start a crypto company in Portugal quickly and effectively, it’s a great idea to get help from Q Wealth experts. Here’s how we can support you within the framework of the company incorporation laws currently in force in Madeira, a recognized tax-friendly region for international entrepreneurs:
- Create a business with minimal involvement from foreign founders.
- Advise on how to establish a company in Madeira with no need to hire employees.
- Assist in opening bank accounts anywhere in the world, including those with payment systems and neobanks.
- Provide support in setting up your new company and beyond.
Have questions? You can get answers to them during a personal consultation with Q Wealth specialists. Just reach out to us using the provided contact details.
Streamlined licensing through our trusted partners
You will have to take several steps to not only obtain a crypto license for your company in Portugal, but also plan your taxes accordingly and move to Portugal. The process will appear much easier if you reach out to Q Wealth’s seasoned pros and our partners in Portugal for help. Here’s what we can do for you:
- Set up a company in both Madeira and mainland Portugal
- Start bank accounts in Portugal and other countries
- Arrange to rent office space
- Make sure the corresponding documents are legal, translate them, and get them notarized.
- Get the license required to do crypto business in Portugal
- Plan and optimize your taxes
- Help you with getting a residence permit for the business owner and their family in Portugal
- Assist you with buying or renting property and more.
Don’t hesitate to start your foreign business today to benefit from the right to become an EU citizen! Take a look at Q Wealth’s popular services in Madeira and Portugal, and get professional help from our experienced specialists!
Key benefits of IBCM in Madeira for crypto companies
Below, you will find the unique benefits Portugal offers to international business owners looking to establish crypto companies, trading operations, or other ventures:
- Tax optimization through beneficial tariff arrangements with the guidance of Q Wealth seasoned experts. For example, the business tax rate for international companies, including those involved in the crypto industry, is set at 5% in Madeira, whereas the tax rate in Portugal could reach up to 14.7%.
- European recognition for a company can rapidly extend your network of customers and partners worldwide and, at the same time, allow you to open additional accounts in banks across Europe and other nations.
- Access to double taxation agreements to improve tax efficiency.
- Both the company founder and their family can secure residency status by registering a Portuguese company.
- Non-habitual resident (NHR) status in Portugal remains attractive to many foreign entrepreneurs and individuals who earn income from overseas while residing in Portugal.
If you would like to become a citizen by investment of any appealing jurisdiction, don’t hesitate to contact Q Wealth experts for a free consultation.
Registration costs for crypto companies in Portugal
Although the expenses associated with registering a crypto company in Portugal depend on the route you select, additional charges remain constant.
Here’s how much you will pay to set up a crypto company with the assistance of weathered Q Wealth experts:
Costs start at 2,950 EUR to register a company in Portugal that will pay taxes under standard taxation rules. Here’s what this all-inclusive package encompasses:
- Registration fee
- Preparation of incorporation documents
- The company’s tax registration in Portugal
- Registration with the social security authorities.
To set up a company in Madeira’s IBCM, you will pay from 6500 EUR. Take note of what the above service package covers:
- Registration fee
- IBCM insurance fee
- Preparation of incorporation documents
- The company’s tax registration and enrollment with the social security authorities
- Obtaining the IBCM license.
Additional services (that are charged separately):
- Acquiring a Portuguese tax identification number (NIF) for company partners and/or directors: EUR 350 per year.
- Legal and mailing address for the company: 1950 EUR per year.
- Notary and document translation services: 400 EUR.
- VAT number: 400 EUR.
- Accounting services: prices are set on a case-by-case basis.
Mind that it will cost you 4000 EUR or more to set up a bank account for your crypto company in Portugal.
Also, be prepared to pay 55,000 EUR to obtain a crypto license (which implies your company will be added to the VASP register).
If you choose to turn to Q Wealth to have your crypto company registered in Portugal, it will take 10 days to set up the company, while obtaining a virtual service provider status may require 3 to 6 months. At the same time, your company’s bank account will be set up in 2 to 3 weeks.
May a foreign national engage in any crypto activities in Portugal?
Yes, it is perfectly legal. To receive the right to transact in crypto, you’ll have to obtain a license from the nation’s central bank (Banco de Portugal) as the activity falls within the scope of virtual services.
Can a foreign national run a business in Portugal without paying taxes?
In Portugal, tax benefits are granted to non-habitual residents (NHRs), international companies incorporated in Madeira that source their income from overseas, as well as natural and legal persons subject to double taxation agreements. For different applicant categories, tax rates may vary. In certain cases, they may even be as low as 0%.
What requirements do foreign nationals face when they are about to register a crypto company in Portugal?
The regulations and legal standards in Portugal are the same for both foreign and domestic founders of crypto businesses. For a virtual service provider to be included in the Registry, the above service provider shall take the following steps:
– Establish a company with the relevant NACE codes for the specified activities
– Open a bank account within the country
– Obtain a license from Banco de Portugal.
