Portugal announced the classification of cryptocurrencies as currency, which means that any personal transactions and payment activities using cryptocurrencies will not be subject to additional taxation. They also choose to settle locally.
Portugal refuses to tax cryptocurrencies, sees virtual currency only as payment method
Portugal has always been one of the most popular immigration areas. Not only is the local consumption cost low, but it is also one of the few areas in the world that does not tax cryptocurrencies.
So far, Portugal has not considered cryptocurrencies as an asset. Unlike the United Kingdom, which treats cryptocurrencies as “assets” and taxes them in a similar way to stocks or real estate, Portugal only classifies cryptocurrencies as money, that is, businesses that only provide cryptocurrency services need to pay taxes, while buying and selling Investors in cryptocurrencies do not have to pay additional VAT.
This policy is very attractive to cryptocurrency investors, which has contributed to the surge in the number of people emigrated to Portugal in recent years. According to the 2021 census data, the number of immigrants in Portugal has increased by as much as 40% in the past 10 years.
“Bitcoin family” moved to the tax-free paradise Portugal to avoid paying 40% of taxes in Europe
Since Portugal does not have a cryptocurrency tax, it has always been regarded as a cryptocurrency tax haven. Even the famous investor “Bitcoin Family” in the currency circle believes that Portugal is a “very beautiful Bitcoin paradise” and decided to The country has taken root. The family reportedly sold all of their holdings into bitcoin, and the money they made from investing in bitcoin alone was enough to travel the world for up to five years.
Veteran virtual currency investor Wout Deley also agrees that Portugal is more conducive to investing in cryptocurrencies than other European countries. He originally traveled to Belgium, but due to the long-term stay there will be taxed close to 40%, so he finally decided to settle in Portugal.