MOST RECENT ARTICLE
Golden visaPortugal Golden Visa Tax Benefits: What Investors Need to Know Portugal’s Golden Visa program provides investors with a real opportunity to enter Portugal, gain permanent residency in this beautiful country, and enjoy tax benefits that have attracted investors for years. In this blog post, we will go over how taxes work for Golden Visa holders, along with everything you need to know as an investor.What is the Portugal Golden Visa?Introduced in 2012, the Portugal Golden Visa, also known as the residence permit for investment activity (ARI), is a residency-by-investment scheme designed for non-EU, non-EEA, and non-Swiss nationals (we mention non-Swiss nationals because, while they are not part of the EU, they have similar rights to live and work in EU countries as EU nationals).It is, to put it simply, a way to obtain residency within the country by making a qualifying investment. It was created to attract international capital into the country. After the economic crisis in 2008, this program was introduced and became a rising success, having raised over €7.5 billion.The visa is valid for two years initially, but is renewable in two-year increments as long as you keep your investment and meet minimal stay requirements. After five years, you can apply for permanent residency or citizenship.Why Investors are Big Fans of the ProgramThe Portugal Golden Visa program has been active for around 13 years and has been favored by investors for several reasons:Access to the Schengen Area: Residency lets you travel freely within most of Europe without additional visas.A Path to Citizenship: Unlike some residency visas, the Golden Visa allows you to apply for Portugal citizenship after 5 years.Low Physical Presence Requirement: You do not have to relocate or completely change your lifestyle, as only minimal physical presence is required.Family Inclusion: Your spouse, dependent children, and, in some cases, dependent parents can be included on the same application.Tax Planning Opportunities: When paired with the right tax status, it can help investors manage or reduce their global tax burden.Portugal is also known for being safe and offering a climate that appeals to many investors. The country has stable governance, a legal system aligned with EU standards, and a high quality of life, making it easy to see why the program is so attractive.How Taxes Work for Golden Visa HoldersSo, let’s get to the matter at hand. Do you pay taxes in Portugal? Whether you will pay taxes in Portugal as a Golden Visa holder depends on one thing: your tax residency status.As a Golden Visa holder, you are not automatically required to pay taxes in Portugal. If you invest and spend limited time in the country, you remain a non-resident and only pay tax in Portugal on the income you earn within its borders.If, however, you spend more than 183 days of the year in Portugal, you will become a tax resident of the nation and will have to pay taxes. The Portuguese taxation system is quite favorable for investors considering relocation.What Triggers Tax Residency?You will become a tax resident of Portugal if you spend more than 183 days in the country during a year, have a permanent home there (even if you spend less time there), or register as a resident with the local authorities.Once tax residency is triggered, Portugal expects you to report and pay tax on your worldwide income, not just local earnings. The Portuguese taxation system can still be advantageous for investors who plan to relocate.On the other hand, as a non-resident, you only need to pay tax on income sourced within Portugal, such as earnings from property or businesses in the country. Your foreign income stays outside Portuguese tax jurisdiction.Tax residents have broader tax obligations, but also may access beneficial tax regimes like IFICI. Non-residents have simpler tax filings but lose out on some benefits. Portugal’s New IFICI Tax Regime Explained (Replaces NHR)The IFICI (Incentive for Scientific, Cultural, and International Investment) tax regime is Portugal’s new scheme that replaced the NHR (Non-Habitual Resident) regime in 2024, also referred to as NHR 2.0. The NHR offered broad tax incentives for up to 10 years, designed to attract foreign investors by providing generous exemptions and flat tax rates on certain foreign and Portuguese income.The IFICI regime is more focused on professionals in scientific research, innovation, technology, and similar fields. While it still offers a 10-year tax incentive period, it is more targeted and comes with stricter eligibility criteria.It provides a flat 20% tax rate on qualifying Portuguese-sourced employment or self-employment income and exemptions on many foreign income types. However, it excludes some benefits from the previous NHR, such as favorable treatment of foreign pensions.How to Apply & Why it Matters for Golden Visa HoldersApplying for IFICI involves going through Portugal’s tax authority. Here’s how to apply:Provide evidence of your professional role, project, or business.Register officially with the Portuguese tax office.Complete the application and submit the required documentation before the annual deadline.For Golden Visa holders, IFICI can be highly advantageous as it lowers personal income tax, offers selective tax exemptions, and may provide better treatment on certain foreign income. This makes it particularly appealing for global investors and professionals earning income digitally.If you plan to invest in fields such as technology, research, or culture, you could benefit significantly from IFICI over the years. However, before basing your entire strategy on it, confirm your eligibility, as rules and interpretations may change.Portugal Golden Visa Tax Benefits for InvestorsWhile not directly designed for tax benefits, the Golden Visa is primarily about residency. When paired with the right tax setup, it can make a notable difference to your finances. Here are the five biggest advantages for investors:No Tax on Foreign Income for Non-residents: Golden Visa holders who do not wish to become tax residents are only taxed on income generated within Portugal. Any income earned outside Portugal is not subject to Portuguese tax.No Wealth Tax: Portugal does not impose a wealth tax on Golden Visa investors, meaning you do not face additional taxation on your global net worth or assets held outside the country.No Inheritance Tax for Close Relatives: There is no inheritance tax on transfers between spouses, descendants, or ascendants. For distant relatives or parties unrelated by birth, only a 10% stamp duty applies.Reduced Property Taxes and Exemptions: Although Portugal closed its real estate investment route for the Golden Visa in October 2024, property taxes (IMI) remain relatively low, generally between 0.3% and 0.8% annually. There are also exemptions based on usage and property location.20% Flat Tax Rate: For those who qualify under the new IFICI regime, a flat 20% tax rate is applied to qualifying Portuguese-sourced employment or self-employment income for up to 10 years.Also, thanks to Double Tax Treaties, residents from countries like the UK, the US, and more can avoid double taxation.Do You Pay Taxes on Your Investment?Naturally, different types of investments fall under different Portuguese tax rules, and your tax bill will be heavily dependent upon which kind of investments you choose to make for your Golden Visa.Real estate investments were the way to go for many investors, but since October 2023, they no longer qualify for the Golden Visa. So, while foreigners may still buy property in Portugal, doing so doesn’t provide any special tax treatment or migration privileges connected to the Golden Visa.However, for reference, had you invested in property before that date, your taxes would include a property transfer tax when buying, an annual property tax called IMI (usually between 0.3% and 0.8%), and rental income taxed at a flat 28%. Some exemptions may reduce this if you become a resident or hold the property long-term.The main route now is via fund investments taken by Golden Visa applicants. You can avoid direct property-related taxes such as the transfer tax and IMI. The payouts from these funds are also often exempted or taxed lightly for non-residents, which makes it a more tax-efficient route.Wealth Tax and Inheritance Tax in PortugalSome good news: Portugal does not have a general wealth tax. Now, with that said, there is an additional tax known as AIMI that applies only to high-value residential properties above €600,000 per individual. This, however, doesn’t affect funds or global assets.As for inheritance tax, Portugal keeps things simple with no inheritance tax between close relatives (spouses, children, and parents), and others might be subject to a 10% stamp duty, but only on Portuguese assets.To put it in a nutshell, real estate and fund investment affect tax exposure significantly and differently, but the former does not get you any Golden Visa benefits. But funds provide more favorable tax treatment today anyway and are relevant for the Golden Visa.Crypto Taxation in Portugal: What Investors Need to Know in 2025Major changes have occurred since 2023 in the cryptocurrency taxation system of Portugal. With crypto trading and assets now fairly mainstream, it is best to know the rules and understand your tax liabilities.Crypto is Now TaxablePortugal used to be quite popular for being a crypto-friendly country, with limited taxation on digital assets up until 2023. Now, Portuguese tax authorities have clarified that crypto transactions are indeed subject to income tax, bringing Portugal in line with many other countries.If you perform short-term trading, any profits earned are treated as taxable income. All your gains will be subject to Portugal’s progressive income tax rates, which can reach up to 48% for high earners.Benefit for Long-Term HoldersIf you are a long-term trader of crypto, holding for 365 days unlocks a major tax advantage: making gains exempt from being taxed. This applies no matter the amount of profit earned from selling crypto held for over a year.Strategic Planning Can Minimize TaxesEven with these rules in place, crypto investors can plan smartly and still gain from their crypto profits:Aim for long-term holdings to benefit from the no-tax advantageMaintain all transaction records to avoid penaltiesUse Portugal’s tax treaties to avoid double taxation if you have income from other countriesStructure your crypto activity to separate personal investments from business operationsReporting & Compliance: What You Need to KnowIt is important to know your obligations as a Golden Visa investor. Portugal sets clear rules that you need to adhere to.Every year, residents and certain non-residents with Portuguese income must file a tax return, commonly known as IRS. Filing can be done through the official Portal das Finanças. Even if much of your income comes from abroad, you might need to report worldwide earnings if you qualify as a Portuguese tax resident. Non-residents only declare income sourced from Portugal itself.Returns typically cover the previous calendar year, with deadlines falling in the spring (usually between April and June).Mandatory Reporting for Foreign Bank Accounts (Modelo 720)Portugal has introduced Modelo 720, a special declaration for disclosing foreign bank accounts, securities, and properties if their combined value exceeds €50,000. Residents must submit this annually.Awareness, honesty, and transparency are the keys to avoiding tax avoidance penalties for non-compliance, which can be severe. So, include accounts, investments, and all property interests you hold outside Portugal, even if they do not generate income that year.Double Taxation Treaties: How to Avoid Paying TwicePortugal’s network of double taxation treaties (DTTs) supports investors. These are international agreements in place to prevent investors from being taxed twice: once in Portugal and once abroad. These treaties exist with the UK, the US, and many other countries. For all practical purposes, you do not have to pay tax twice.Golden Visa Program Updates That Affect Tax PlanningAs discussed above, the Portugal Golden Visa went through updates that have a direct impact on how investors approach their tax and residency strategy.Real Estate Investment Routes Closed Since October 2023Again, purchasing property in Portugal used to be one of the most popular ways of qualifying for the Golden Visa, but that is no longer the case. Anyone seeking a new Golden Visa today must look elsewhere, such as funds and cultural projects. Investments in approved Portuguese funds or support for national cultural initiatives are now the main qualifying routes.These main qualifying routes must meet government criteria and are often professionally managed with an emphasis on technology, innovation, or the arts. These options also typically come with lower ongoing tax burdens (no property taxes, fewer indirect taxes).What These Changes Mean for Taxation and ComplianceWith no real estate options on the table anymore, investors face a clearer picture for tax:No annual property tax or property transfer taxes for fund-based Golden Visa holdersGains and distributions from funds benefit from favorable tax treatment, especially for non-residents who often face little to no Portuguese withholding tax, depending on structure and bilateral tax agreementsCompared to property owners, fund investors have more consistent compliance requirements and much less administrative paperworkFund investments are more liquid and flexible, offering more financial freedomTo make the most out of Portugal’s updated Golden Visa program, you need a thorough understanding of the tax benefits and compliance requirements of fund and cultural investment.Planning for Citizenship and Long-Term TaxationThe path to Portuguese citizenship is clearer than ever before. After spending five years with a Golden Visa (and meeting the stay requirements), you can apply for a passport. Needless to say, keep your record clear.Make investments accordingly, with your goals clear. Fund investments, especially in diversified and well-managed options, are now the gold standard for keeping taxes low, building wealth, and facilitating your eventual move toward EU citizenship. If you choose that path, the tax rules are the same as for any other residents.How Bitizenship Helps Navigate Portugal’s Golden VisaThe Golden Visa Program can be a bit complex to tackle alone, especially as a crypto investor. The process becomes more nuanced. That is where assistance from an advisory firm like Bitizenship comes into play. Unlike many other advisory firms, we have a crypto-first approach.We offer a Golden Visa-eligible fund managed by a licensed crypto-focused asset manager in Portugal, with 110 visas managed to date. The fund provides exposure to real Portuguese companies that integrate Bitcoin in their balance sheets, as well as access to top-tier, low-fee ETFs from names like BlackRock and Bitwise.Our team assists you at every step, working with law firms and financial advisors, making sure the paperwork is air-tight, and there is proper planning for tax and compliance. If you are a crypto investor looking for residency, the right fund route, and structured support, get in touch with us today.Closing Thoughts Providing access to over 27 countries and plenty of tax benefits when used correctly, Portugal opens real doors for a new life. Begin a new chapter of your life in Portugal with built-in tax efficiency as a crypto investor by partnering up with Bitizenship. Planning and staying current with the requirements sets you up for long-term success in Portugal, confidently.FAQsWhat are the disadvantages of a Golden Visa? No visa is perfect. The Golden Visa, too, for example, has some drawbacks such as rules changing, removal of the ability to qualify with real estate, and raised investment requirements, tax on fund returns (depending upon your tax residency and investment choice), and ongoing compliance. What are the tax benefits of moving to Portugal? Tax benefits of moving to Portugal include lower or exempted taxes on several kinds of foreign income, no wealth tax, tax-free inheritance for immediate family, fund-based investments that deliver lower tax exposure compared to direct property holdings, and the possibility of benefiting from double taxation treaties to avoid paying tax twice on the same income. Why is Portugal ending the Golden Visa? The Golden Visa is not ending. The government has made some changes to the program, but these changes are not an indication of an end, rather an evolution. The program continues and is now focused on broader economic growth, like research, heritage, job creation, and not just the residential real estate sector. Has Portugal scrapped the 90-day rule? No, the 90-day rule remains. Non-residents can stay in Portugal and other Schengen countries for up to 90 days within any 180-day period without a visa. Residency permits and Golden Visas offer different, more permanent rights, but the standard Schengen stay rule is still in force.14 MIN READ
20 Aug 2025
