Navigating Cryptoassets & Real Estate: What to Know in Portugal
The Algarve’s luxury real estate market is a world of opportunity for savvy investors. At ten Hoopen Realty, we’re dedicated to a client-focused approach, ensuring you have the expertise and insights needed for a seamless experience. As cryptoassets become a more common part of investment portfolios, understanding their tax implications in Portugal is crucial for anyone looking to make a smart move in the luxury property market.
A recent law (Law no. 24-D/2022, of 30 December) has established a clear framework for the taxation of cryptoassets in Portugal, addressing what was once a legal grey area. This framework ensures that income from cryptoassets is now taxable under specific categories. For high-net-worth individuals and investors, this clarity is a significant step forward.
Key Tax Considerations for Cryptoassets
Here’s a breakdown of how different cryptoasset activities are taxed, which is vital for anyone considering using these assets as part of a property transaction:
Income from Capital (Category E): This applies to any economic advantages from cryptoassets, such as remuneration from crypto-related operations. It is taxed at 28% of the gross income.
Capital Gains (Category G): If you sell cryptoassets you’ve held for less than 365 days, any increase in value is taxed at a flat rate of 28%. The good news? Cryptoassets held for over 365 days are exempt from this tax, encouraging a long-term investment strategy.
Self-Employed Income (Category B): For those whose business involves frequent crypto trading, mining, or other related activities, this income is taxed at a progressive rate.
Stamp Duty: Transactions involving cryptoassets are also subject to Stamp Duty, with a 10% rate for gratuitous transfers (like inheritance or gifts) and a 4% rate for services provided by or through a cryptoasset service provider.
How Our Expertise Can Guide You
This new legal clarity is an excellent example of why partnering with a trusted advisor is so important. At ten Hoopen Realty, our core brand pillars—Relationship, Expertise, and Energy—are designed to support you through these complexities.
Expertise: Our deep market knowledge and strategic advisory services extend to understanding the economic landscape that impacts your investments. We work with the best legal minds to ensure our clients have the information they need to make informed decisions.
Relationship: We build genuine, long-term connections. We’re here not just to find you a home, but to serve as a trusted consultant, helping you navigate the big picture of your investment.
Energy: Our proactive team stays ahead of these regulatory changes, so you don’t have to. We leverage fresh insights to give you a competitive edge, ensuring your path to a new life in the Algarve is seamless and stress-free.
Understanding the tax implications of your investments, including cryptoassets, is an essential part of the luxury real estate journey. We invite you to experience our exceptional client service and see how we make complex issues simple.
Let’s start the conversation today. Talk to an expert at ten Hoopen Realty and let’s find a home that fits your lifestyle and investment strategy.
Melhores cumprimentos & Kind regards,
Dexter ten Hoopen,
Managing Partner
ten Hoopen Realty
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Original Excerpt according to a report from Martinez Echevarria – click here to find out more.
