Portugal’s position as a safe haven for Bitcoin (BTC) investors threatened

Is this the end of the tax haven for crypto investors in Portugal? The Portuguese Minister of Finance, Fernando Medina, reportedly told parliament that a cryptocurrency tax system will soon be implemented in the country. Although the details are still few, the concern is felt by legal and natural persons requesting clarification.

Portugal is a relatively discreet country in the cryptosphere. Next to heavyweights like El Salvador, Switzerland or Singapore, very few people consider Portugal as a major pro-Bitcoin country. In recent years, however, the country has been behind many initiatives that are slowly but surely attracting many crypto investors.

Source: Adobe

Portugal’s position on Bitcoin has not always been so clear and supportive. In fact, in 2016, the Portuguese tax body issued a document warning that cryptocurrency trading could generate different types of taxable returns. The situation changed in 2017, when an official source told the Finance Minister Dinheiro Vivo, a media specialist in finance, that:

“The sale of bitcoins is not taxable under the IRS in relation to the Portuguese tax system, namely under category E (capital) or G (gains), except when, by reason of its usual nature, it constitutes a professional or commercial activity of the taxpayer, in in which case it will be taxed under category B. “

Recently, Portugal’s attractiveness in the crypto field has become even stronger, not least due to neighboring Spain’s strong anti-crypto stance. While many legal experts have warned that tough rules passed in Spain could turn the country into a “crypto wilderness”, Spanish investors continue to flock to Portugal or at least choose it as their legal abode, just like the Bitcoin family. This famous Dutch family of five, who became internationally known after selling everything they owned to invest in Bitcoin, actually chose to settle in Portugal because of the favorable tax framework.

“You do not pay capital gains tax or anything else in Portugal on cryptocurrencies,” he said Didi Taihuttu to CNBC, citing the country’s 0% tax.

Business Insider Spain also noted the contrast between the situation in the two countries. Two lawyers specializing in corporate and tax issues, Teresa Novo and Luisa Cinca, said that “highly qualified” people, with a background in computer science, computer technology and / or economics, are also interested in Portugal. They would specifically look for “a country where they do not have to pay tax on all or part of their income.”

In recent years, Portugal has spared no effort to promote innovation aimed at attracting investors and stimulating the economy: in 2020, Portugal established a strategy for the creation of technological free zones, focusing primarily on “capacity building and digital inclusion of people, digital transformation of companies and digitalisation of the state ”.

When it comes to the crypto sector, the country’s central bank, Bank of Portugalissued in 2021 a notice subjecting crypto exchanges to a licensing scheme under its supervision.

Recently, Bison Bank became the first financial institution to be licensed to operate virtual asset providers. It is licensed to offer cryptocurrency deposit and trading services. Bison Bank provides asset management, custodian banking and investment banking services to retail and institutional clients, according to its website. It is owned by a Chinese private equity group based in Hong Kong.

In addition, the Portuguese government announced the creation of a working group to develop a national blockchain strategy. This group consists of public and private companies and other experts. The aim is to investigate how the country could use blockchain technology, as well as the clarification of regulatory issues. The Portuguese government expects the final version of the draft strategy to be published in June 2022.

(updated May 16 at 17:58 UTC with new developments in taxation)

Follow our affiliate links:

  • Buying cryptocurrencies in the SEPA zone, Europe and French citizensvisit Coinhouse
  • Buying cryptocurrency in Canadavisit Bitbuy
  • To generate interest with your bitcoinsgo to the BlockFi website
  • To secure or store your cryptocurrenciesget Ledger or Trezor wallets
  • To trade your cryptocurrencies anonymouslyinstall the NordVPN app

To invest in cryptocurrency mining or masternodes:

To collect coins while playing:

  • In poker on the CoinPoker gaming platform
  • To a global fantasy football on the Sorare platform

Stay informed with our free weekly newsletter and to our social network:

Leave a Comment