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Did you know that digital assets are tax-free in Portugal?
Portugal has established its reputation as one of the best crypto tax havens worldwide. And this is not for nothing. Due to the several tax-free cryptocurrency regulations taken in 2016, this country is now a magnet for crypto enthusiasts and one more reason to get a Portugal Golden Visa in order to relocate to this country on a legal basis. What is there to say if even a Roger Ver, a so-called “Bitcoin Jesus,” has decided to take residence there. The same goes for the “Bitcoin Family,” which believes that Portugal is “a very beautiful bitcoin heaven.”
Only in 2021, Lisbon hosted two major crypto events: an Ethereum conference and Europeβs first crypto art festival, Rare Effect. Portugal also has one of the biggest blockchain communities, with hundreds of groups passionate about blockchain technology and dealing in different cryptocurrencies.
In fact, Portugal sets a great example in terms of crypto-friendliness, boasting a little legal and regulatory burden on cryptocurrency businesses.
What are the details? Read this article and explore what drives crypto adoption in Portugal!
Did you know that Portugal hosts a lot of crypto-focused events? (such as the Solana Conference and Web Summit). This helps bring more crypto luminaries and make this country literally a home for crypto-minded people!Β
Want to join this thriving Portuguese crypto community? Then Portugal Golden Visa is just what you need!Β
According to the Portuguese tax law, digital money is not seen as financial assets or foreign currencies. This means that you can keep to yourself all your savings, and they would not be taxed.
However, unfortunately, it’s not all that simple.
Portuguese tax authorities believe that your crypto earnings should not be taxed unless you do it as professional trading. Here everything depends on your entrepreneurial activity.
It is obvious that you will not be regarded as a professional trader only if one of the qualities stated above applies to you. However, it is always helpful to talk to a lawyer to get things in order.
Technically, cryptocurrencies are not considered money, as they do not have a legal tender in Portugal. However, it would be best to understand that you can always exchange digital money for real currency.Β And that’s quite a different story.
So what do we have at a dry rest?
Unlike most other European countries, Portugal is one of the few states which does not levy capital gains tax on crypto gains. Not all governments want to make money from the virtual currency boom, and Portugal is just another proof of this statement.
To confirm this, just look at the table below.
| Country | Classification | Type of tax | Tax rate |
|---|---|---|---|
| Australia | Property | Progressive income tax GST | 19-45% 10% |
| Belarus | Digital asset | NA | NA |
| Brazil | Asset | Capital gains tax | 15% |
| Canada | Asset | Progressive income tax | 15-33% |
| China | Virtual commodity | Progressive income tax (for international trading) | 3-45% |
| Denmark | Private money | NA | NA |
| France | Property | Capital gains tax | 30-34% |
| Germany | Private money | Progressive income tax | 0%-45% |
| India | Digital asset | Progressive income tax GST | 0-30% 18% |
| Israel | Digital asset | Progressive income tax VAT | 10-50% 17% |
| Japan | Property | Progressive income tax Consumption tax | 5-45% 8% |
| Malta | Commodity | NA | NA |
| Netherlands | Asset | Income tax | 30% |
| Panama | Digital asset | NA | NA |
| Portugal | NA | NA | NA |
| Russia | Digital asset | Income tax | 13% |
| Singapore | Property | NA | NA |
| Slovenia | Movable property | NA | NA |
| South Africa | Intangible asset | Progressive income tax | 18-45% |
| South Korea | Property | Income tax VAT | 20.9% 7% |
| Sweden | Digital asset | Progressive income tax | 0-57% |
| Switzerlandβ | Movable property | Progressive wealth tax Progressive income tax | 0-0.67% 7-34% |
| Turkey | Commodity | Progressive income tax | 15-35% |
| UAE | NA | NA | NA |
| UK | Private money or Asset | Corporation tax Progressive income tax | 19% 0-45% |
| USA | Property | Capital gains Progressive income tax | 0-20% 10-37% |
Did you know that Portugal hosts a lot of crypto-focused events? (such as the Solana Conference and Web Summit). This helps bring more crypto luminaries and make this country literally a home for crypto-minded people!Β
Want to join this thriving Portuguese crypto community? Then Portugal Golden Visa is just what you need!Β
Actually, the profits from your crypto trading can fit in one of the income categories β Self-Employed Worker, Capital Yields, and Capital Gains.
From all the above, one can conclude that crypto gains normally don’t fit into any income category, and investors should pay taxes only in case of professional activity. In this case, crypto traders should open activity (register a Portuguese company) and pay taxes.
If you are a crypto trader planning to relocate to Portugal, then you can take advantage of the different options. However, the most popular routes remain the Portugal Golden Visa and D7 Visa.
Want to know more? Reach out to our guide and learn about the benefits of this method!
As it was stated above, Portugal does not levy a capital gains tax on your crypto gains. Crypto transactions are exempt from Value Added Tax (VAT). Thus, crypto investors do not have taxation on all the gains related to crypto trading platforms and crypto income.
Wonder how to pay taxes in Portugal? Reach out to this article and find out answers to all your questions!
The Portuguese government sets a special tax regime for new tax residents providing a tax exemption applicable for foreign-sourced capital income. It also allows benefiting of reduced tax rates on Portuguese-sourced income as well. A key feature of Portugal’s NHR regime lies in the Double Taxation Agreements (DTA). Due to the DTAs, Portugal makes most categories of income to be taxed in the country of source of income, which does not happen in practice. To be eligible for NHR, you should comply with a number of requirements, among which the main one is not to be a tax resident of Portugal for the last 5 consecutive years.
GOLDEN VISA PRESENTATION
One of the best ways to move to Portugal is with the help of the Portugal Golden Visa. The Portugal Golden Visa is a Residency-by-Investment Program launched in 2012, which helps boost the country’s economy. This highly favorable investment scheme is perfectly designed for non-EU nationals.
To be eligible for Portugal Golden Visa, you should choose from a range of relatively affordable investment options that will give you both permanent residency and an opportunity to become a national of the European Union in 5-6 years.
Then read this guide and get insights about all the nuances!Β
Since Portugal does not tax crypto gains (unless you are a professional trader), it is no exaggeration to say that Portugal is a crypto haven.
Portugal is beneficial for many. Firstly, this happens because of the NHR, a preferential tax regime, which enables to enjoy reduced tax rates on Portuguese-source income while income generated from other countries would be exempt from Portuguese taxation. Another important benefit is that Portugal does not levy taxes on your crypto assets (unless this is a professional trading activity).
According to Portuguese law, you don’t need to declare your capital gains resulting from cryptocurrency trading. Therefore, you are exempt from paying crypto taxes unless it is a professional or entrepreneurial activity.
Yes, some crypto-friendly countries permit using your cryptocurrency in order to buy second citizenship.
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