- Portugal is gradually becoming a paradise for bitcoiners as it has a friendly tax environment for cryptocurrencies.
- In Portugal, profits derived from the purchase or sale of cryptocurrencies are not subject to tax.
A pro-crypto tax environment, commercial stores that accept BTC transactions and a developing community of bitcoiners, are some of the facts that are currently registered in Portugal that, in 2021, ranked fourth in the Global Peace Index, and tops the list of the best countries for expats.
For these reasons it is that The country is advancing on the path of positioning itself as the new heaven for those who believe in the benefits that the use of cryptocurrencies brings in the search to achieve and maintain a better quality of life.
Through an interview conducted by Cointelegraph to a Dutch family that became famous in 2016, for having sold all their possessions and bet everything on bitcoin, reflects the reasons why this Republic, not only for this family group, but for many owners of the aforementioned cryptocurrency, a friendly panorama is drawn for a daily life.
As residents of Portugal, the father of the group known as “the Bitcoin family”, Didi Taihuttu, appreciates that the community that has adopted this cryptocurrency as the main axis of its economic support is growing.
“I know that the big bitcoiners already live in Portugal. They are anonymous. They spend their money in homes and they spend their bitcoins on everything,” he said. Didi Taihutu.
A friendly and growing tax environment
Another of the main hooks of Portugal that has captivated this family group and a large number of bitcoiners, is that cryptocurrencies are part of a friendly tax environment, product of a regulation established in 2016, which does not qualify them as currencies and therefore they are not legal tender, nor are they subject to taxes.
For the Portuguese Tax Authority, in practice, the income generated is only taxed if it is the result of the exercise of the profession of its holders.
“In Portugal, no capital gains tax or anything like that is paid on cryptocurrencies. As long as you don’t earn cryptocurrencies for providing services in Portugal, you’re fine. It’s a very nice Bitcoin sky“, asserts Didi Taihutu.
For Shehan Chandrasekera, public accountant and head of tax strategy at crypto software company CoinTracker.io, the main factor that defines Portugal as a really attractive place for cryptocurrency users is that profits derived from the purchase or sale of cryptocurrencies, are not subject to tax, this also means that cryptocurrency transactions or payments, as well as the exchange of bitcoin for fiat money, are not subject to value added tax, or VAT.
In addition to a 0% tax on the commercialization of Bitcoin, there is the possibility for citizens of the European Union to obtain the right to permanent residence, and for non-EU citizens, the country offers expatriates some avenues of residence, such as the golden visa and the D7 visa (also called a retirement visa or passive income visa), which tend to attract foreigners with high purchasing power.
These facts are appreciated as highly significant fiscal and life advantages for those foreigners who come to live in this country.
On the other hand, in Portugal, the possibility of carrying out research activities for blockchain and cryptocurrency consortiums or firms is being promoted, another sector that is committed to landing firmly on this land and conquering it.
Commerce and services embrace cryptocurrency
The inhabitants of this semi-presidential republic can, for example, pay their electricity bills in BTC, and companies like the startup BitBase are promoting the adoption of BTC within the country by bringing more cashiers and bitcoin stores to major cities.
According to Coinmap in Portugal there are 57 merchants and some other retailers that have embraced Bitcoin as a valid currency for their transactions.
As a result of the growth that is being experienced in the region, groups have also emerged in favor of BTC, such as Bitcoin oil. Tiago Vasconcelos, the Bitcoiner behind this nonprofit group, seeks to make Bitcoin Lightning payments widely accepted.
“Portugal is not taxing cryptocurrencies and this may be the best time, especially for people, to start learning about and interacting with technology and get exposed to the best savings account they will ever have.”“, Tiago points out.
For Matt Koller, co-founder of the Swiss company Pocket Bitcoin, the magic of this country located along the Atlantic coast of the Iberian Peninsula, is based not only on its position in favor of Bitcoin capital gains, which at the moment is “unlikely to change soon“, but to this are added other facts:
“In addition to having an advantageous legal framework for those interested in the magical money of the internet, the 300 days of sunshine, the charming Portuguese people and culture, as well as the exceptional gastronomy, undoubtedly also play their part.” declared the businessman.
By following this fiscal panorama prone to cryptocurrencies, the idea that the land of José Saramago, Joaquim de Almeida and Cristiano Ronaldo can become an attractive destination to execute crypto activities can be promoted.
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