Bitcoin. Credit: Pexels, WorldSpectrum
Portugal is positioning itself as a crypto-friendly hub, with its innovative Golden Visa schemes now attracting Bitcoin investors.
The European Union’s regulation for the Crypto Assets Market (MiCA) officially came into force on December 30, 2024, promising increased security and investor protection across member states.
MiCA regulation
The MiCA framework establishes uniform rules for crypto asset trading and services across the EU. According to the Portuguese Securities Market Commission (CMVM), this landmark regulation seeks to protect investors by mandating clear risk disclosures and introducing robust safeguards.
Providers must safeguard client funds, keeping them in segregated bank accounts to prevent misuse in the event of insolvency.
Transparent reporting and operational standards aim to curb fraud and manipulation.
MiCA does not regulate NFTs (non-fungible tokens) or unique digital assets.
The regulation also allows a transitional period of up to 18 months for businesses to fully comply, offering flexibility for entities adapting to the new framework.
Portugal’s Golden Visa and Bitcoin
The Unbound Fund, a venture capital fund regulated by the CMVM, offers a unique pathway to Portuguese residency by indirectly investing in Bitcoin through Exchange Traded Funds (ETFs).
To qualify for the Golden Visa, non-EU citizens must:
- Invest a minimum of €500,000 in a qualifying fund.
- Maintain their investment for at least five years.
- Spend 14 days in Portugal every two years to retain residency.
Alessandro Palombo, CEO of Unbound Fund, described the initiative as “a tool for freedom of movement in a mutually beneficial way with Portugal.” The scheme has reportedly attracted over 110 investors.
Portugal’s crypto taxes
Portugal remains one of the most attractive countries for crypto enthusiasts. Short-term crypto gains (less than a year) are taxed at 28 per cent, but long-term holdings are tax-free.
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