Tax Summary:

1. Personal income tax – from 14.5% to 48%
2. Corporate income tax – 31.5%

What law/s governs VASP activities?

1. Law No 83/2017 of 18 August 2017 (only in Portuguese)

What activities are included in VASP services?

The following activities or transactions involving virtual assets in Portuguese territory are subject to prior registration with the Bank of Portugal, including when the applicant is engaged in another profession or activity, provided by Law No 83/2017 of 18 August 2017:

1. Exchange of services between virtual assets and fiat currencies or between one or more forms of virtual assets.
2. Services for the transfer of virtual assets.
3. Storing and/or administering virtual assets or tools to control, hold, store or transfer such assets, including private encrypted keys.

Who is the VASP regulator?

1. Banco de Portugal

What is the procedure for registering a VASP for a local company?

In order to obtain a crypto license in Portugal, a crypto service provider must meet the following requirements:

1. Present their business plan.
2. Provide proof of a newly established company.
3. Provide a certificate of no criminal record.
4. Appoint a resident director.
5. Provide proof of registration for payment of taxes in Portugal.

Is there any specific authorization required for a VASP from another EU member state to provide services in this jurisdiction?

Activities with virtual assets subject to registration with the Banco de Portugal and regulated in Portuguese territory.

The following persons or entities are considered to operate within Portuguese territory (Article 4(6) of Law No. 83/2017): 

1. Legal persons or entities treated as legal persons incorporated in Portugal for the pursuit of activities with virtual assets.
2. Natural or legal persons or entities treated as legal persons with domicile or establishment in Portugal engaged in activities with virtual assets.
3. Other natural or legal persons or entities treated as legal persons which, due to the pursuit of activities with virtual assets, are obliged to declare their activity to the Portuguese tax authorities.

What is the liability for the activities of a VASP from another EU member state without local registration/authorization in this jurisdiction?

The liability for the activities of a VASP from another EU member state without local registration in Portugal is provided for by Law No. 83/2017 of August 18, which establishes measures to combat money laundering and terrorist financing. Article 169a (administrative offense) of Law No. 83/2017 of August 18 stipulates that the following typical offenses are considered particularly serious crimes: non-compliance with the registration rules for entities engaged in activities with virtual assets. 

Article 170 of Law No. 83/2017 of August 18 provides for penalties for particularly serious administrative offenses under Article 169a, namely: a fine ranging from 5,000 (euros) to 1,000,000 (euros) if the offender is a legal entity or an organization considered as a legal entity; a fine ranging from 2,500 (euros) to 1,000,000 (euros) if the offender is an individual.

Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

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