Portugal, a bargain for cryptocurrency investors: why is it considered a tax haven?

The Taihuttu, known as The bitcoin family, became known throughout the world for dedicating their lives, body and soul, to this cryptocurrency. In 2017 they sold all their assets to invest in bitcoin, which was trading at $900 at the time, and hid their fortune in several countries on four different continents.

After traveling to more than 40 countries, this Dutch family made up of a married couple and three daughters has finally settled in Portugal, a real bargain for investors of these digital currencies. “In Portugal you don’t pay any capital gains tax or anything like that with cryptocurrencies,” Didi Taihuttu, the family’s patriarch, explained. CNBC.

“Capital gains, such as collection and operations between cryptocurrencies, are not subject to personal income tax”

Today, Portugal is considered one of the most attractive countries for these investors. Your current system, or rather, his absence of legislation In this regard, it does not allow taxing the profits of these cryptocurrencies, while Spain and France already have legislation in this regard. As they are not technically considered currencies or financial assets, their returns do not end up included in capital or financial gains.

“Capital gains resulting from cryptocurrency transactions, such as collection and operations between cryptocurrencies, are not subject to personal income tax,” says Shehan Chandrasekera, director of the specialized software company CoinTracker, in statements to CNBC.

In 2012, the Portuguese government introduced the so-called non-habitual tax residence (NHR) that exempts foreigners from paying for income that comes from outside the Portuguese country. This is what has caused many people to move to this country to avoid paying taxes. Portugal is currently a destination tax free for the sale of cryptocurrencies, and it seems that it will continue to be so, since no changes are planned in this regard for the new fiscal year.

There are operations that are taxed for those who are under the non-habitual resident regime

Although unfortunately for many, not all of the forest is oregano, since there are certain operations that are taxed for citizens who are under the non-habitual resident regime in Portugal. According to the digital consultant specializing in changes of tax residence Relocated&Save, it is necessary to be clear about the frequency of sale and the professionalization in terms of the sale of cryptocurrencies or cryptoactives. is not the same a holder that a crypto trader or that an NFT artist (in this case, the Portuguese administration considers their profits business income and, consequently, ends up being taxed at 20%).

Taihuttu confesses that the advantages that have brought him to the Portuguese country would not be so attractive if he dedicated himself to other activities. “If you earn cryptocurrencies by providing services in Portugal, you have to pay taxes on those cryptocurrencies, but I don’t earn anything, at the moment, in Portugal. So for me, it’s a 0% tax,” he says. Another advantage is that they are allowed to maintain their nomadic family status without the need to settle in the country. “There is no minimum requirement to stay one day in Portugal,” he points out.