Cryptolicense in Portugal: New European Cryptohub

Portugalian government work paved the way for favorable regulation for crypto companies in the country. Primary regulator, Banco de Portugal, actively monitors the virtual assets market keeping the regulations relaxed and friendly for a business, making Portugal a good starting point in the coming MiCA regulations.

On March 14, 2022, Bison Bank obtained the first VASP license for the bank, opening a new page for crypto in Portugal. It is absolutely clear that banks are subject to more stringent regulation. The fact that Banco de Portugal has issued a license to a bank signals its readiness to allow even such entities as banks into the crypto market and shows positive developments for the whole crypto sphere.

Government attitude to crypto regulations creates an advantageous opportunity to start a crypto company in the coming MiCA regulations

Key Numbers about Cryptolicense in Portugal

6 months

average term of obtaining license

21%

corporate income tax (CIT) rate

€0

minimal contribution for share capital

25%

Withholding Tax (WHT) rate

€475

application fee for License

23%

Value Added Tax rate

Legal Opinion about Cryptolicense in Portugal

Ganna Voievodina

Manimama, CEO

"For businesses seeking legitimacy and security in the cryptocurrency market, Portugal's well-defined regulatory environment makes obtaining a crypto license a logical step. The country's framework promotes industry compliance, fosters trust, and positions companies for long-term success. By operating within Portugal's regulated space, businesses signal their commitment to responsible innovation in the blockchain sector. Contact our experts to gain access to new european cryptohub".

Types of Activities with a License

Exchange crypto to crypto: VASPs are authorized to facilitate the exchange of various virtual assets, including utility tokens and coins, ensuring diversified trading options.

Custodial wallet services: VASPs, through custodial wallets, offer a secure means of storing cryptocurrencies on behalf of users, with operators having the ability to open wallets while maintaining control over private keys.

Crypto transfers: VASPs are authorized to facilitate the secure transfer of cryptocurrencies from clients' wallets to designated third-party wallets, presenting an alternative to traditional fiat wire transfers.

Account statements issuing: VASPs have the right to reflect the balance and issue the account and transaction statements.

Exchange crypto to fiat and fiat to crypto: VASPs enable the conversion between cryptocurrency and fiat currencies, offering customers the flexibility to transact in multiple currencies.

Crypto processing and crypto acquiring: VASPs hold the capability to conduct the service allowing merchants to accept crypto as a payment with a consequent transfer of crypto to the merchant or conversion it to fiat.

On-ramp and off-ramp services: VASPs have the wide opportunities for the business development including providing B2B services as on-ramp, off-ramp, white label products which Manimama is ready to help to launch including payment service providers connection.

Token sales: The last but not the least! VASPs are authorized to conduct ICO offering the utility and limited-use e-money token.

Choose the Package of Services

Advanced

Exhaustive set up of company infrastructure for the start of operational activity

€13,000

  • Company formation in Portugal
  • NIF (Tax Identification Number)
  • Registration of the Beneficial Owner (RCBE)
  • Registered address for 1 year
  • Payment account for cryptorurrency operations
  • Registering share capital
  • VASP authorization
  • Apostiled corporate documents
  • Individual AML/KYC policies
  • Local AML/KYC Officer
Order now

Basic

Authorization under the minimum regulatory requirements

€10,000

  • Company formation in Portugal
  • NIF (Tax Identification Number)
  • Registration of the Beneficial Owner (RCBE)
  • Registered address for 1 year
  • Payment account for cryptorurrency operations
  • Registering share capital
  • VASP authorization
  • Standart AML/KYC policies
Order now

Connect with our experts

By clicking the button, I confirm that I have read the privacy policy and consent to the collection and processing of my personal data in accordance with the GDPR rules.

Our Experts in this Area

Step by Step Description

Step 1. Initial setup

Preparation documentation for company formation, opening a bank account and crypto license application

Duration: up to 5 days

Step 2. Company registration

Creation of a private limited liability company (Lda) after choosing a name and complying with all legal requirements (business plan, charter, AML/KYC requirements and other). No nominal capital required

Step 3. Opening a bank account

It is an obligatory procedure. Includes evaluational the most suitable bank, preparation of documents required and further assistance

Duration: 2-3 weeks

Step 4. Applying for a cryptocurrency license

Obtaining a virtual asset service provider status to start crypto-related activities in Portugal

Duration: 4-6 months

Requirements for Сryptolicense in Portugal

There are several requirements that must be satisfied in order to register a company with the crypto-registry and to obtain a certificate of registration with the crypto-registry in Portugal:

  • business plan
  • 3 preferred company’s names
  • charter
  • AML/KYC policies and procedures
  • 2 shareholders / 1 director (no residency requirements)
  • certificate of no criminal record

Need to prepare a business plan, a description of the software and hardware, one director and at least 2 managers, and adherence to AML/KYC regulations

Taxes in Portugal

There are no capital requirements for Lda

Corporate Income Tax (CIT)

  • Name: Imposto sobre o Rendimento das Pessoas Coletivas (IRC)
  • Standard rate: 21%
  • Reduced rate:
    • 17% for the first €25,000 of taxable income (for mainland Portugal-based Small and Medium Enterprises (SMEs))
    • 12.5% for companies operating in the Autonomous Regions of the Azores and Madeira
  • Taxable base: taxable profit (accounting profit adjusted for tax-specific additions and deductions)
  • Filing deadlines: by the end of May of the year following the tax year
  • Payment deadlines:
    • Occasional pre-payments are due in July, September, and December of the tax year.
    • Any remaining balance owed is due with the filing in May.

Withholding Tax (WHT)

  • Name: Retenção na Fonte
  • Standard Rates:
    • Dividends: 25%
    • Interest: 28%
    • Royalties: 25%
  • Reduced Rates: may apply based on:
    • Double taxation treaties between Portugal and the recipient's country of residence.
    • EU Directives (reduced rates for dividends and interest paid to entities within the EU).
  • Taxable base: gross amount of the income that is being paid
  • Filing deadlines: by the 20th of the month following the month the payment was made
  • Payment deadlines: same as filing deadlines

Capital Gains Tax (CGT)

  • Name: Mais-valias
  • Standard rate: included as part of taxable business income and taxed at the standard CIT rate (21%)
  • Reduced rate: 50% of the capital gain can be excluded from taxation if the gains are reinvested in certain qualifying assets.
  • Taxable base: difference between the sale price and the acquisition cost of the asset (adjusted for inflation)
  • Filing deadlines: same as the corporate income tax return (end of May following the tax year)
  • Payment deadlines: same as the CIT payment deadlines

Client Feedbacks

"Manimama OU's in-depth understanding of fintech law has helped us navigate complex regulations with ease".

"We've been consistently impressed with Manimama OU's dedication to finding creative, impactful legal solutions".

"If you value a law firm that stays ahead of industry trends and challenges, look no further than Manimama OU".

Our Latest Legal Researches

How to obtain a cryptocurrency license in the Netherlands

Tax Summary: What law/s governs VASP activities? What activities are included in VASP services? The following crypto service providers are regulated in the Netherlands, according to the Money Laundering and Terrorist Financing Prevention Act: At the moment the entities who offer crypto-to-crypto exchanges are still not regulated. Who is the VASP regulator? What is the…

April / 18 / 2024
Read more

How to obtain a cryptocurrency license in Malta

Tax Summary: What law/s governs VASP activities? What activities are included in VASP services? VFA license types: Who is the VASP regulator? What is the procedure for registering a VASP for a local company? 1. Establishing a Company. If the company operates from outside Malta, it must have a branch in Malta with its registered…

April / 16 / 2024
Read more

How to obtain a cryptocurrency license in Luxembourg

Tax Summary: What law/s governs VASP activities? What activities are included in VASP services? Who is the VASP regulator? What is the procedure for registering a VASP for a local company? Entities established in Luxembourg or providing services in Luxembourg cannot offer virtual asset services without registration with CSSF, as provided for in Article 7-1(1)…

April / 11 / 2024
Read more

Contact Us

If our proposal is intriguing, we kindly request to complete the form provided below to learn more. By doing so, we guarantee access to a comprehensive commercial personalized offer, featuring up-to-date prices and detailed information.

We look forward to the opportunity of collaborating and delivering exceptional solutions that meet and exceed expectations of any Client.

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.