Start here: how I live tax-optimised with crypto in Portugal

This is my personal setup. Not advice, just what I actually do. Your situation is different, so do your own research and talk to professionals.

Residency

I moved here on the D7 visa. It's not the easiest path, but it gives you 10 years of tax benefits if you structure things right. The key is having passive income from outside Portugal—crypto trading can qualify if you do it right.

Portugal's NHR (Non-Habitual Resident) regime means 0% tax on foreign-sourced income for 10 years. But you need to be careful about how you structure your crypto income. I work with a Portuguese tax advisor who actually understands crypto.

Self-custody

Hardware wallet (Trezor) for anything I'm not actively trading. Simple multisig setup for larger amounts. Never keep more than I can afford to lose on exchanges, even the "good" ones.

I keep detailed records of everything. Every transaction, every trade, every fiat conversion. The tax authorities here are getting smarter about crypto, so clean records are essential.

Exchanges

I use EU-compliant exchanges for fiat on/off ramps: Coinbase for beginners, Binance for lower fees, Revolut for the EU-friendly card and account.

Always keep some fiat in a local bank account. You still need it for rent, utilities, and the occasional cash-only place. Crypto is great, but you can't pay your landlord in Bitcoin yet.

Spending

Revolut card for daily stuff. Crypto debit cards for larger purchases. I keep a small amount of stablecoins for quick conversions when needed.

The key is not to overthink it. Start simple, get comfortable with the basics, then add complexity as you need it.

What I avoid

Complex DeFi strategies that I don't fully understand. Yield farming that requires constant attention. Anything that makes my tax situation more complicated than it needs to be.

I also avoid keeping large amounts on any single exchange. Even the "safe" ones can have issues, and I'd rather sleep well at night.