Tax Free Bitcoin? Welcome To Portugal

Portugal Crypto Residency Rush

Portugal has bcome the number one country for anyone involved in Bitcoin and other cryptocurrencies, especially long term investors and retail traders. Official statistics, alongside a steep rise in enquiries to Bitcrypto Market shows that residency in Portugal is growing year after year and is it any wonder why?

The Portuguese tax authorities are quoted as saying that cryptocurrency “An exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.” This means that any profit from the purchase and sale of cryptocurrency in Portugal will not be taxed, nor will the exchange of cryptocurrency for other currencies.

What are the cryptocurrency regulations in Portugal?

The Portuguese law officially follows EU regulation on cryptocurrency, which stipulates that gains from the buying or selling of cryptocurrency should not be subject to VAT. Beyond this, there is no other specific legislation on cryptocurrency. This document from 2016 (in Portuguese) outlines the official treatment of cryptocurrency in Portugal.

Cryptocurrencies, as with other types of currency, can generate income in a number of different ways:

Gains from the sale and purchase of coins

Profit from commissions charged in services relating to the acquisition of use of cryptocurrency

Profit derived from the sale of products or services for cryptocurrency The Portuguese tax authorities are quoted as saying that cryptocurrency “An exchange of cryptocurrency for ‘real’ currency constitutes an