Portugal isn’t that far behind other countries like El Salvador, Panama, Switzerland, Singapore and others in terms of being crypto-friendly
Fast Ecosystem Grow
According to the Executive Director of Startup Portugal, Portugal has more unicorn firms than Spain, Greece, and Italy combined. When comparing the size of Portugal to those nations combined, the population and GDP in 2021 are less than 9% and roughly 1%, respectively.
The country also has a high level of engineering expertise at a low cost, as well as an extraordinarily high degree of English language competence (if you compare to Spain, France, Italy). The majority of Portuguese entrepreneurs are fully skilled, with at least a master’s degree. This is one of the causes behind recent years’ improbable success.
Cryptocurrency is one area where Portugal has made headlines, with crypto nomads flocking to the country to establish the country’s first digital nomad community, with the help of the Madeira Island government. Madeira is establishing incubators and a crypto community in order to foster innovation and attract digital travellers. However, this is occurring in several other cities, including Lisbon. Lisbon’s city’s mayor, Carlos Moedas, proposed the creation of a unicorn factory, which is now under development and is anticipated to be completed by the next Web Summit in November of this year.
No Crypto Tax & Bitcoin Family Migration
Portugal’s cryptocurrency regulation, which are exempt from taxation, attracting a lot of interest. Portuguese cryptocurrency merchants and miners are now benefiting from the country’s crypto-friendly environment, which has been mentioned several times over the years. Bitcoin revenues are tax exempt in the country, and Bitcoin businesses face less legal and regulatory impediments than in other countries, according to the World Bank.
In 2018, the Portuguese government ruled that any Bitcoin income earned from the sale of cryptocurrencies were exempt from taxation. In addition, the Portuguese government decided that any money made through cryptocurrency trading is exempt from taxation. You will not be liable to income tax or VAT in Portugal as long as you are not operating a certified crypto company in the country.
Portugal, with its crypto-friendly stance, serves as an excellent model for other European governments. Foreign businesses and investors are encouraged to invest in cryptocurrencies since they are able to gain income from it without having to pay taxes on it.
Gains earned from the purchase and sale of crypto are not taxed in the same way that gains made from the purchase and sale of any other currency are not taxed. On the other hand, businesses that provide services connected to Bitcoin are subject to capital gains taxes ranging between 28% – 35%. If you don’t engage in Bitcoin trading on a regular basis, it’s feasible that your profits may be tax-free. Please keep in mind that if you make your living from Bitcoin trading, you will be required to submit a tax return and pay taxes on your profits.
After spending the previous five years in 40 different countries, the Bitcoin family, a well-known Dutch family who made a fortune with Bitcoin, picked Madeira Island in Portugal as their new home. According to other expatriates who have migrated to Portugal, Portugal is a tax-efficient nation for crypto, and living in Portugal is simple.
“You don’t pay capital gains tax or anything in Portugal with cryptocurrencies,” Didi Taihuttu told CNBC, referring to the country’s tax rate of 0%.
Portugal In Race To Lead ESM
Portugal wants to boost its weight in Europe by taking over the eurozone’s 500 billion-euro ($525 billion) bailout package, a significant creditor to the country during the economic meltdown. According to persons familiar with the situation who requested not to be identified because they were talking secret information, the administration in Lisbon is pushing hard for Joao Leao, a former finance minister, to succeed Klaus Regling as head of the European Stability Mechanism.
Former Luxembourg finance minister Pierre Gramegna, former Dutch state secretary for finance Menno Snel, and Italy’s Marco Buti, an experienced and skilled EU official, were all nominated by their respective countries on Monday. The selection will be announced as ESM board members on June 16, before Regling retires in October.
Eurozone finance ministers decided in early 2021 to make the ESM the backup for the Single Resolution Fund in the event of a bank failure. Italy must yet approve the new ESM treaty before it goes into force, and Germany must wait for the approval of its constitutional court until finishing the amendment process.
