Crypto Business in Portugal: Time Has Come!

If you have never looked at Portugal as a good destination for starting a crypto business, it’s high time to do so. The local laws do not impose any restrictions on non-residents who wish to register a crypto company here. However, if you want to pay three times less in corporate income tax, look a little further than mainland Portugal. Madeira offers really favorable conditions for obtaining a license for crypto entrepreneurs and offers a much lower tax rate.

The matter surely requires some research, and we propose to use our knowledge base where you will find a more detailed article on how to open a crypto company in Portugal and lots of other information on international business and banking you may appreciate. Our articles are written by practicing consultants who closely monitor the business landscape to keep you informed about the latest goings-on that may have a considerable influence on your activities.

If you have no time to study all the information you may need and delve into the laws of another country, you can book a session with our expert to receive answers to all your questions, get practical advice regarding business, taxation, or banking, or request turnkey help with establishing your business, obtaining a license, optimizing taxes, and other aspects that may be important to you. Contact us now – we are just a click away and ready to help!

Allowed Crypto Business in Portugal

You can set up your crypto business in Portugal or Madeira to engage in the following activities:

  • Provide the services of exchanging virtual currencies between users or into ordinary currency (fiat)
  • Ensure seamless crypto transfers through the user’s wallet and via other available methods
  • Provide trusted custody and flawless administration of crypto owned by a legal entity or being under management

Starting your crypto business in Portugal is easy. However, make sure you get a relevant license from the Central Bank of Portugal and have your business information entered into the Registry of Virtual Asset Service Providers (VASP).

Crypto Undertakings in Portugal in Detail

If you are a foreign entrepreneur, you are legally allowed to set up a crypto company in Portugal and receive a relevant license to operate it. Keep in mind that the taxes you will pay and the requirements you will have to comply with depend on the legal form of your business and its location.

Crypto company founders in Portugal typically choose one of the following two legal forms to register their company:

  • LLC, or Limited Liability Company (LDA in Portuguese)
  • JSC, or Joint-Stock Company (SA in Portuguese)

The amount of taxes varies considerably for companies incorporated in Portugal and Madeira:

  • A crypto business in Portugal will be liable for a standard company income tax of 14.7%.
  • However, Madeira offers an opportunity to reduce this amount to 5%, which may be decisive. All you need to do is to obtain a license that will allow you to carry out your activities in the International Business Center of Madeira (IBCM), the local free trade zone.

With that in mind, international companies mostly opt for Madeira to start their business activities.

Madeira’s Free Zone: Benefits for Crypto Businesses

Madeira is a hub that attracts not only crypto companies but also many other businesses as it offers a number of tangible benefits:

  • Lower business tax rate. As we mentioned, the difference is considerable: 5% in Madeira vs up to 14.7% in Portugal. If tax optimization is one of your top priorities, please contact our specialists to find out how to save on taxes after you set up a business in Portugal.
  • Establish a European company. Companies based in Europe traditionally have a high status in the business world, and they can easily extend their activities to numerous partners across the world – or open accounts with European or other world’s top banks. A European company will usually be welcome in any institution!
  • Multiple DTTs. Portugal is a party to numerous double taxation treaties with many countries, and your current country may well be one of them. This is yet another step towards tax optimization.
  • Residence permit. If you establish a company in Portugal, you will be entitled to obtain a residence permit for yourself and all your family members.
  • Non-habitual resident. This is a status you can get in Portugal if you live in the country and earn your income abroad. It gives a lot of perks (including those connected with personal taxes) and is an attractive offer for non-resident entrepreneurs.

If you need any further details at this stage, do not hesitate to follow the above link and reach our professionals who will provide any clarifications you need to make a well-informed decision.

How to Obtain a Crypto License in Madeira

The International Business Center of Madeira, a well-known free trade zone, will be happy to issue a license for your crypto company if you follow the procedure below:

  • Choose a name for your company that complies with the rules. (Useful tip: make sure it will resonate with your target audience and remain relevant as your business evolves!)
  • Collect a package of documents required to incorporate your company, including the data related to its management.
  • Address Madeira’s tax office and social welfare organizations to register your business.
  • Establish a corporate account for your company.
  • Submit an application to S.D.M. to receive a license for your crypto company’s operations (send two copies in Portuguese!)

Rely on Professional Help

You will probably agree that a house should be built to last for many years and bring no trouble to its dwellers. The same refers to a company: it should be incorporated competently to prevent any issues in the future. The fewer problems you have to solve, the more successful your business will be!

We recommend delegating all administrative issues and nuances to our experts. We know how to go about company registration (and corporate bank account opening) with minimum effort on your part. In particular, here is what we can do for you:

  • tell you how to set up a Madeira business without hiring the local staff
  • set up a business account in any bank, neobank, or payment system
  • legalize your documents
  • assist in the rent of office spaces
  • obtain any license you may need

Please follow the link above to see a full list and get in touch with our specialists to get your Madeira crypto business running in no time!

Comments

Post a Comment

Popular posts from this blog

LBank Breaks Down Bitcoin's Double-Digit Price Surge

Image
Road Town, BVI, 25th March, 2023, Chainwire Global cryptocurrency exchange LBank has analyzed Bitcoin’s spot performance, which has culminated in an eight-month high of $28,000. LBank Co-founder Johnason Chan and LBank Labs board of directors member Czhang Lin have provided in-depth analysis of the price increase.  Shortly after the collapse of Silvergate Bank, Silicon Valley Bank (SVB), and later Signature Bank , liquidity concerns for decentralized fintech players piled up. Many believed a valuation drop would have been inevitable for crypto. However, Bitcoin has performed beyond expectations, starting the week off with a 27% rise to just below $28,000 . At the time of writing, the world’s largest digital asset by market capitalization seems to have stabilized, continuing to hover around $28,000. The market movement of Bitcoin is hard to make sense of, considering the ongoing unraveling of a banking crisis and expectations of further US interest rate hikes . However,...
Read more

How to Buy Bitcoin in 2023

This is the best time to get into the Bitcoin trade. Cryptocurrencies are now widely accepted and they are making their way to traditional stock exchanges, with the backing of some large investors. They are easy to use and countless businesses accept them as a payment option. In this article, we’ll explain what are the best ways to buy Bitcoin and how to do it as a novice. We’ll also present you with a few options when it comes to exchanges since all of them have some unique benefits that may be useful to a specific group of investors. The Essentials  Before getting into the different exchanges and how to use them, we’ll first go over the essentials. The basic process for buying Bitcoin is the same regardless of which exchange you’re using and how much Bitcoin you’re buying. The process is done in 4 simple steps. Open an Account with an Exchange  Visit any exchange you want and set up an account on it. The process is similar to setting...
Read more

Core's Revolutionary Satoshi Plus Consensus Marries Decentralization, Security, and Scalability

Image
Singapore, Singapore, 30th March, 2023, Chainwire Core is a novel layer one blockchain that is pushing the boundaries within the crypto space. Inspired by Bitcoin and Ethereum, Core progresses beyond those blockchain behemoths by synthesizing each of their superpowers. A student of blockchain history, philosophy, and innovation, Core optimally balances decentralization, security, and scalability. Without Core’s advancements, crypto has been plagued by the “Blockchain Trilemma,” which states that decentralization, security, and scalability can never be achieved simultaneously. Tackling the Trilemma head-on, Core DAO contributors have designed a unique consensus mechanism known as Satoshi Plus, which marries the decentralization and security of Bitcoin’s Proof of Work (PoW) with the scalability of Delegated Proof of Stake (DPoS).  With Satoshi Plus consensus, both Bitcoin miners and CORE token holders can participate in network security by delegating their BT...
Read more