Summary
- Portugal introdced 0% tax for crypto.
- Crypto families are moving into the country to enjoy the tax exemption on crypto.
- Capital gains resulting from crypto are not subject to value-added tax.
- A census conducted a decade ago shows the number of foreign nationals has increased to 40%.
- Portugal sees crypto as a form of payment rather than a currency.
0% Tax in portugal for crypto
Portugal has become a safe haven for crypto enthusiasts. The country introduced a 0% tax on cryptocurrencies. The Portugues Tax authority introduced the move in 2019.
Buying and selling cryptocurrencies would be tax-free. Why you might ask? Because in Portugal crypto is not considered as any other currency. It is seen as a method of payment rather than a currency.
Also read: Here Are Some Amazing Benefits of Investing in Crypto
A lot of crypto enthusiasts have seen the 0% tax as a leeway to move into the country. A census conducted recently showed an increase in the number of foreign nationals. The number is said to have risen to 40% ever since the tax was exempted from crypto. Crypto companies have also encouraged their customers to move to the country.
The 0% tax Portugal for crypto however has some limitations. The tax exemption only works for individuals. Companies and corporate bodies on the other hand have to pay for gains made on crypto.
A Dutch family that invested in crypto moved to Portugal due to the 0% tax on cryptocurrencies. Didi Taihuttu liquidated all their assets and opted to travel the world. However, Portugal’s offer on crypto was too good to live behind.
“You don’t pay any capital gains tax or anything else in Portugal on cryptocurrencies, as long as you don’t earn cryptocurrencies for providing services in Portugal, you’re in the clear. That’s a very beautiful bitcoin heaven.”He told CNBC during an interview.
The gains from buying and selling cryptocurrencies are tax-free. Moreover, transactions, payments, and exchange of bitcoin for money are exempted from value-added tax.
