Eternity Law International News Crypto License in Portugal

Crypto License in Portugal

August 25, 2022

In modern financial space, a separate niche has already been formed for cryptocurrencies – digital funds that are used for settlements and actively circulate in various operations. More organizations are appearing on the market intending to offer services for the crypto-exchange, opening of crypto-currency debit cards and carrying out crypto-operations. In jurisdictions favorably accepting cryptocurrencies, particularly in Portugal, special permits are needed for such business-activities. Next, we will consider the main aspects and nuances regarding getting crypto-license in Portugal.

Our firm provides comprehensive professional support in crypto licensing in hundreds of jurisdictions that accept cryptocurrencies. We also have a huge number of ready-made licenses for sale in other commercial areas. Our experts are ready to help on any issue.

Portugal crypto-license requirements

Main regulations that were formed by the local regulator are quite loyal and supportive of entrepreneurs. The general rules and regulations that need to be followed are next-mentioned.

  1. Mandatory completion of firm establishment procedure, for which it’s mandatory to indicate organizational form. This implies establishment of a firm covered by classical taxation or taxation at reduced rates, which is available in Madeira.
  2. Registration of a business-project requires entrepreneurs to specify activities’ categories firm intends to implement.
  3. Three different firm names. Please note: jurisdiction does not allow duplicate names for enterprises. Several options are needed to choose the most optimal possible one.
  4. Determining minimum capital size. Normative provisions set minimum amount of 1 euro, however, the most acceptable and optimal option is to have an amount of at least 1000 euros.
  5. Payment for company establishment.
  6. Account opening in one of the local banking institutions for corporate purposes. To do this, you will need to prepare an arrangement on company’s launching, registration extract, a mobile number and a valid email address. The set of certain documents differs depending on the banking structure.
  7. Obtaining NIF partner/director – tax number.
  8. Lease or purchase of office space and approval of legal address.
  9. Hiring heads and workers, in particular for accounting purposes.
  10. Preparation and collection of documentation.

Main AML standards and regulations are as follows. They are mandatory for all crypto companies.

  1. Tracking risks that are connected with illegal circulation of funds and terrorist financial support that may arise as a result of use of new technologies.
  2. Exercising an appropriate level of due diligence in entering into and maintaining business-relationships, in carrying out one-off transaction, or in control and execution of any ongoing customer deal and current virtual asset.
  3. Development and active internal realization of policies, procedures and mechanisms to monitor and manage possible risks connected with illegal circulation of funds.
  4. Implementation of customer and firm owner identification schemes (through the use of KYC procedures).
  5. Storage of data about conclusion, establishment and maintenance of business relationships with clients.
  6. Conducting painstaking analysis and thorough checks of the transaction using established measures to assess possible risks.
  7. Timely notification of competent authoritative bodies about operations being considered untrusted for objective reasons.
  8. Strong and honest cooperation with local authorities.

Documents that organizations need to collect for establishment and getting appropriate license permits include next-mentioned.

  1. Documentation proving identity of shareholders and directors. The provided copies must necessarily contain an apostille.
  2. Documentary confirmation of the address with a period of issue not older than three months.
  3. TIN of country of founder’s tax-residency.
  4. Approval of penal records absence for representatives of top management of company.
  5. AML-certificate. Firms may provide certificates issued in other jurisdictions.
  6. A power of attorney to a person who is able and will represent the interests of the firm within the jurisdiction.

We will help you collect a complete documents’ package and take over the communication with the regulator. Your efforts will be minimal, thanks to which you can direct them to progress of your business-structure.

Types of cryptocurrency licenses

The type of licensing permission depends on what range of crypto-service firms intend to offer.

  1. Crypto-assets and fiat exchange.
  2. Virtual assets exchanging among themselves.
  3. Crypto-assets transferring and trading.
  4. Keeping, implementation of security measures or monitoring of critical assets and related instruments, in particular, crypto-keys.

Portugal is trying in every way to develop each of crypto trading directions allowed in the jurisdiction, providing strict support to this sector as a whole. This becomes an attractive factor for aspiring entrepreneurs and those who have already been able to reach certain heights in their commercial path.

Advantages of crypto licenses in Portugal

It should be noted that this country belongs to range of those spaces that managed to successfully cope with the consequences of several crises that had a significant impact on economic sector. Portugal sets and strongly supports auspicious conditions for doing business-activities connected with blockchain. Tourism sector is especially developed in the country, however, the jurisdiction is ready to offer numerous opportunities for commercial progress also in cryptocurrency niche. Opening and running crypto-business in Portugal is quite profitable because of following benefits and privileges.

  1. The presence in the country of special economic zones in which a 5% rate is set for paying taxes. In particular, these include the Madeira International Business Center. Portugal in general offers quite favorable tax rates and all sorts of incentives in this connection.
  2. A stable economic and political microclimate, which is essentially important for beginner businessmen.
  3. Appealing and loyal norms in order to safely and efficiently launch and carry out business-activities globally, not limited to one jurisdiction.
  4. Fairly fast in terms of implementation and easy to understand process for firms’ establishment. Most important thing is also the local regulator aims at exceptionally transparent and honest interaction with entrepreneurs, which eliminates the risks of corruption or illegal issuance of licenses to non-professionals.
  5. A wide market of skilled labor with vast experience in the crypto-sphere.
  6. Affordable cost of firm launching and licensing. In comparison with EU-countries, opening a business-project in Portugal is available even to businessmen with a small budget.
  7. Comprehensive activity support from the state apparatus. This is especially convenient and beneficial for startups. Anyone who intends to invest in the crypto-sphere and contribute to its development and expansion within the jurisdiction can count on significant government assistance.
  8. Portuguese crypto businesses are legally allowed to open corporate accounts with some banking institutions and payment systems in Europe.
  9. Reliable and stable reputation of the jurisdiction as a country with transparent, loyal and constantly improving laws. This contributes to a significant increase in the confidence of potential partners and customers in your business.

Steps to get a crypto-license in Portugal

This jurisdiction compares favorably in establishing a fairly simple and intuitive process for crypto-companies registration. Entrepreneurs don’t need to perform any rather complex or difficult actions. However, it is best to entrust this matter to professionals, which are our specialists. We are ready to take over the entire procedure, ensuring the most effective result.

The procedure itself is as follows and contains such steps.

  1. Beforehand, it’s mandatory to formulate and define an exact list of business-priorities and activity classes within which firm intends to specialize.
  2. Be sure to determine, verify and reserve company’s names.
  3. Firm must have all the details regarding beneficiaries, founders and heads. This includes personal data, confirmation of the availability of appropriate education, experience and qualifications in this area.
  4. The entrepreneur selects and draws up an address for office space, the use of which will be carried out for corporate purposes.
  5. Next, the full amount of the company’s capital is paid.
  6. Preparation of a package of documentation, list of which is provided and determined by local regulatory bodies.
  7. State duty payment.
  8. Open account with banking institutions for the purpose of placing and holding corporate funds.
  9. Next, the organization needs to submit documentation to the registrar and receive an appropriate certificate indicating that the company is established.

We are ready to guide you through each step of the above process efficiently and quickly so that you can get your business up and running in shortest time. Our firm also offers many ready-made structures for acquisition, in particular, banks for sale, brokerage companies, gambling projects, and more.

Taxes for crypto-companies in Portugal

There aren’t separate provisions in Portuguese legislation covering payment of taxes by crypto-firms. Given this, profits obtained from vending of crypto-currencies aren’t subject to income taxation, nor to increase in corporate capital, nor to increase in equity capital.

As Portuguese taxation system states and functions, profits received from vending of any crypto-asset aren’t taxed. There is an exception to this rule, which is as follows. If the profit is regular, it qualifies as business or professional incomes, thus, it’s already taxable. The rate can reach 48%.

How much does a crypto license in Portugal cost?

Portugal offers quite favorable conditions for legal establishment of crypto-firms. In addition, the development of these commercial structures is supported by the state apparatus and local capital-holders, and it’s of no small importance. The cost of obtaining a crypto-license is calculated individually for each company, as it depends on many related factors.

Our experts are ready to calculate the exact cost for you. We also focus our efforts on optimizing your budget as much as possible and effectively allocating costs. We have many years of experience and professional knowledge, which allows us to achieve fast and profitable service for our clients. Our experts are familiar with all the nuances of crypto-licensing in Portugal, which is a guarantee of success and security for starting your commercial project.

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