Crypto: Bitcoin in Portugal 2023. Portugal continues to grow in popularity as not only a hotspot for tourists coming to experience the country’s glorious beaches and desirable weather but also as a destination for new businesses. Thanks to incentives and careful planning from the government, there is now a stable environment for businesses to thrive in. Clarification surrounding crypto rules in Portugal from earlier this year now means that this European country is paving the way in terms of Bitcoin.
Portugal follows the European Union guidelines on crypto regulation but until recently there had not been any official communication regarding the guidelines on Bitcoin. As per the official European Union guidance, gains from buying or selling Bitcoin should not be subject to tax but specific legislation surrounding Bitcoin has been left for EU member states to outline.
Bitcoin in Portugal
The recent clarification from Autoridade Tributária e Aduaneira, the Portuguese tax authorities, confirmed that the crypto currency Bitcoin is legal in Portugal. An official statement was given to a company who are beginning to mine Bitcoin in the country. In the statement, financial authorities state that Bitcoin will be treated in the same was as any other currency.
Profiting from Bitcoin
Buying and selling Bitcoin, the sale of Bitcoin related products, and Bitcoin acquisition commissions can all generate an income from the crypto.
In Portugal, the exchanges of Bitcoin will constitute an on-demand, VAT-free exercise of services. Essentially meaning that the profits made from Bitcoin exchanges will not be taxed and neither will the exchange of Bitcoin to other currencies. However, companies who choose to deal in the cryptocurrency will be subject to capital gains tax that could be on a scale between 28% and 35% while payments to individuals will not be taxed.
Portuguese Non-Habitual Tax Regime
The Portuguese non-habitual tax regime (NHR) should also be a point of interest to those who trade in Bitcoin. As in some other places, tax tends to be paid on a sliding scale in Portugal. Those who declare themselves as tax residents in Portugal though may also be able to benefit from the non-habitual tax regime. Thus, meaning that many individuals with higher economic worth might be able to take advantage of certain tax exemptions or reductions.
Bitcoin Exchange in Portugal
One of the most simple and easy ways to acquire Bitcoin is through using one of the online exchange platforms. Such as Coinbase or Kraken. For those who live in Portugal and prefer to use a Bitcoin ATM, there are two situated in Lisbon.
Bitcoin and Banking
Theoretically, most banks accept Bitcoin. But over the past few years some banks have blocked certain crypto transactions, supposedly after fraud allegations. Online banks such as Revolut should be a good option for those looking to bank their Bitcoin.
If you are residing in Portugal and find yourself wondering about cryptocurrencies and taxes, then contact one of our Wealth Managers today.