hi everyone, i’m planning to move to portugal with my crypto assets. it says bitcoin is free in Portugal. how does it work? does everyone have any experience? thanks
Same here. It says that if bitcoin is not your professional activity, it’s tax free.
Yes, earnings from crypto are exempt from VAT in the country
There are lots of reasons to like Portugal if you’re into crypto.
First off, it’s the taxes. Or lack thereof…
Crypto transactions are exempt from VAT in Portugal.
This is because Portugal considers cryptocurrencies to be a means of payment, rather than an asset. Portugal uses € as its main currency, but you can be paid in a crypto currency and pay for goods and services using crypto currency (via Crypto Credit Cards)
As a crypto trader, you need to be careful as to assess if your activities would qualify as professional income or not. If trading is your main source of income, it would most likely qualify as a professional income. If that’s the case, it would not be tax-free.
The below factors matter in determining if your crypto trading activities are considered professional or not:
- No of trades and their frequency
- How long you hold the positions
- Complexity of your trades
- No of trading platforms you use
- Relationship to other income
- Debt-to-equity ratio
- Your main profession / activity / source of income
I suggest you make sure and consult a tax professional or lawyer in determining if your crypto income will qualify to be tax-free in Portugal.