Few things in the world are as popular and divisive as cryptocurrency is right now. The amount of people who are betting on the success of a certain type of cryptocurrency is expanding by the minute and the numbers will only continue to grow.
Because of this and many other related reasons a huge number of digital nomads are moving out of countries who show zero support in the crypto industry and looking for new homes who provide an exemplary tax regime where they can grow their crypto portfolio. One country that has been welcoming investors with open arms is Portugal.
Regardless of what different type of Crypto you are investing in, you are only taxed if you are trading with cryptocurrencies as a professional activity. If it is a hobby and does not represent a major part of your earnings then you are not required to present your earnings if they stay in your wallet.
Earnings that stay in your wallet and do not pass through any bank or any other financial institution are non taxable in Portugal mainly because they do not fit any description and can’t be placed in any particular category.
Portugal is one of the most crypto friendly countries in all of Europe with one of the greatest tax regimes currently being offered. Besides what I mentioned in the above paragraph, Bitcoin earnings are also exempt from the VAT in the country.
The reason for their flexibility regarding cryptocurrency is because Portugal is hoping to attract as many young entrepreneurs as possible. In upcoming years the incentives for current cryptocurrency investors are only going to get stronger and easier to navigate.
There are currently only three ways in which cryptocurrency can be taxed in Portugal; exchanging cryptocurrency to real legal tender, commission paid for being the middleman in an exchange of cryptocurrency, for the sale of a service or product involving the trade or exchange of cryptocurrencies.
In other words, you are only taxed when you convert your crypto into Dollars, Euros, Pounds, or any other taxable income. There are no laws that can tax you for the amount of money that you make while investing in Bitcoin or other cryptocurrencies.
Based on this, you can move your crypto business inside of Portugal and not pay any taxes on your crypto earning. You still have to pay rent and create jobs to get the D2 Visa to relocate to Portugal, but it is pennies compared to the amount of money that you will be making.If you are serious about moving to Portugal to start a cryptocurrency enterprise then I suggest you do it the right way and apply for a residency. There are two great programs that can benefit you and your company. The famous Golden Visa Program and the Non – Habitual Residency Program in Portugal.
Both programs are different, but they both offer excellent choices for you to start a new life in Portugal while reaping all the benefits of opening a cryptocurrency business in the country. Go for it and I promise you won’t regret it.