On February 7, the “Bitcoin Family” settled down for the Dutch “Bitcoin Family” who have been traveling the world for the past 5 years. Now, the head of the family, Didi Taihuttu, has decided to take root in Portugal, where there is a zero-tax policy on bitcoin. Didi Taihuttu said that in Portugal, you don’t need to pay any capital gains tax or any other taxes on cryptocurrencies.
Unlike the United States, which treats virtual currencies as property and taxes them in a similar way to stocks or real estate, Portugal treats cryptocurrencies as a form of payment, a distinction that has huge tax implications.
Shehan Chandrasekera, CPA and head of tax strategy at crypto tax software company CoinTracker.io, further explained that Portugal sees bitcoin as a method of payment, meaning bitcoin is similar to other fiat currencies, with capital gains from cashing out and conducting cryptocurrency transactions No personal income tax is required, and gains from the purchase or sale of cryptocurrencies are not taxed.
Not only that, there is no VAT to pay for crypto transactions or payments in Portugal, as well as for Bitcoin to fiat currency, these advantages make Portugal a really attractive place to live for crypto users.