Although Portugal doesn´t accept direct investment in cryptocurrencies as an eligible option for Golden Visa purposes, it is now possible to invest in funds that have exposure to blockchain technology, including exposure to cryptocurrencies,
Portugal has a crypto-friendly framework that has been attracting international investors. For example, capital gains from cryptocurrencies held for more than one year are completely tax free. Also, crypto to crypto exchanges are not taxed, allowing some deferment of tax liabilities. At the same time, Portugal is a reputable hub for innovation in the blockchain area, including trading in digital assets.
Portugal is ranked 14th in the world in the Henley & Partners Cryptocurrency Adoption Index. According to the report, Portugal is renowned for its crypto-friendly tax policies. Simultaneously, the government´s approach to this area has helped to create a good environment for innovation in the crypto sector.
The Portuguese central bank, Bank of Portugal, regulates and supervises cryptocurrency local entities and has given the greenlight for a number of trading platforms and other startups, in areas like fundraising, integration of trading among exchanges and wallet and staking services, that currently operate in the country.
Every year are held in Portugal a number of important cryptocurrency and blockchain linked events, attended by a crowd of local and international players.
Considering the above favorable framework, it´s no surprise that several crypto funds are eligible for Portugal Golden Visa purposes.
While some funds invest purely in crypto assets like Bitcoin, others have a more balanced portfolio, including stocks and bonds, helping to reduce the volatility of the returns of the fund.
There´s also some private equity funds that invest in companies aligned with the Bitcoin ecosystem, indirectly holding an exposure to Bitcoin through ETFs.
For crypto driven investors, these funds might be the natural investment space for obtaining a Golden Visa. If they have currently a neutral net additional exposure to crypto strategy, they can sell part of their crypto portfolio, convert into fiduciary currency which will be immediately after invested into crypto linked funds, with minimum transaction costs involved.
