XyonEnT ∞ AutoXyon 🏎️ Amazon | CryptoXyon 🪙 InvestXyon 💰 Walmart | NovaXyon 🌟 XyonPaw 🐾 Sofia Gray | ZenXyon 🧘‍♂️

Portugal for Crypto Traders: The Ultimate Guide – Cryptoxyon

Portugal for Crypto Traders: The Ultimate Guide

Portugal is getting a lot of attention with its tax-free cryptocurrency regulations. Over the years, the country has announced many incentives, and now, cryptocurrency dealers and miners benefit from Portugal’s crypto-friendly climate. Bitcoin earnings are exempt from VAT in the country, and cryptocurrency enterprises are under fewer legal and regulatory hurdles than in other countries.

With its crypto-friendly position, Portugal offers a terrific example for other European countries. It encourages overseas entrepreneurs and investors by allowing them to earn cryptocurrencies without paying taxes on them.

Portugal: A Growing and Stable Economy for Investors

According to Ernst & Young’s foreign direct investment attractiveness report, Portugal is among the 10 most attractive countries in Europe. According to the same report, 50 percent of the investors believe that Portugal is going to get more attractive in three years. 37 percent of the investors are planning to expand their operations in the country.

Apart from this, Portugal has always been a favored country thanks to its safe and peaceful environment. According to the Global Peace Index, it’s the sixth safest country in the world, and the third in Europe. Portugal also ranks first in the Expat Exchange’s Best Places to Live in the 2022 Survey.

Portugal is establishing itself as one of Europe’s most economically inventive nations, with all of the economic activity and technology buzz in Lisbon and Porto. Portugal has built investment incentives to attract high-net-worth individuals and professionals. Portugal Golden Visa and D7 Visa are two key attractions. As a result, the economy and real estate market has grown, and this trend is expected to continue in the future, especially with favorable cryptocurrency regulations.

Taxes on Bitcoin in Portugal

In Portugal, cryptocurrency transactions are exempt from VAT, as the country views cryptocurrencies as a form of payment rather than an asset. The Portuguese currency is the Euro, but you can be paid in cryptocurrency and pay for items with crypto visa cards – it’s a win-win situation for crypto traders and investors.

Tax on Cryptocurrency Gains in Portugal

Gains made from the acquisition and sale of cryptocurrencies, like any other currency, are not taxed. Companies that provide services related to cryptocurrency, on the other hand, are taxed on capital gains on a scale between 28 and 35 percent.

It’s possible that your bitcoin trading is tax-free if it’s not done on a regular basis. However please note that if you trade bitcoin as your primary source of income, you must file a tax return and pay taxes on your earnings.

Below are some elements to determine if your trade activity will be considered as your profession:

  • The frequency of your trade (on a daily/weekly/monthly basis)
  • The duration of financial products holding
  • How many trading platforms you’re using
  • Your profit level
  • Your main activity to generate income from

You’re not going to be regarded as a professional trader just because one of the qualities stated above applies to you. However, speaking to a tax lawyer will be useful as your case might be different.

How To Move To Portugal as a Cryptocurrency Trader

If you’re planning to move to Portugal as a crypto trader, you have different options. The most popular routes are Portugal Golden Visa and D7 Visa.

Cryptocurrency and Portugal Golden Visa 

Through Portugal Golden Visa scheme, non-EU citizens get residency in Portugal and become eligible for citizenship only after five years. 

This scheme allows investors to get residency and citizenship by investment in Portugal through a qualifying investment. Portugal Golden Visa grants you the right to move, study, and work in Portugal.

Portugal Golden Visa is very attractive to bitcoin traders who want to ensure the security of their investments while benefiting from resident rights. Portugal stands as a great Plan B for both their investment and their families.