An Overview Of Portugal For Cryptocurrency Investors

Many flock to the Caribbean, but the weak infrastructure, comparatively low standard of living, and lack of facilities have driven others to search for more livable countries that offer the same - if not more - freedoms, albeit in a much more developed environment. It is here where Portugal becomes the obvious choice. 

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The EU country has an outstanding living standard, a booming economy, a lovely climate, endless activities, great education systems, and an impressive healthcare infrastructure. What is more interesting, however, how crypto-friendly Portugal actually is - especially when compared to other western nations such as the USA. 

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Portugal's welcoming nature towards cryptocurrencies and those who deal with them has made it a dream destination for crypto-investors. The nation not only allows cryptocurrency transactions, but makes them easy and highly profitable.

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Cryptocurrencies in Portugal are not subject to decimating regulations such as the case in India or China, nor are taxes levied upon cryptocurrency income, as the country views cryptocurrency as a method for payment and conducting transactions, not an asset in itself.

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This classification of cryptocurrencies means that they are not subject to capital gains tax, unlike profit from trading in other assets such as real estate. It also exempts crypto earnings from income tax, as it carries the same status as those deriving income from trading in fiat currencies. 

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The designation of cryptocurrencies as a transaction tool was stoutly highlighted very recently when a purchase of a house in Braga was conducted in Bitcoin, with the new owner paying three Bitcoins to complete the transaction. 

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This purchase marked the first real estate acquisition in Portugal - and the entire EU - conducted in cryptocurrency, showcasing once again how far ahead the crypto-curve Portugal really is, and investors are taking note. 

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But it isn't just about the acceptance of cryptocurrency. Portugal's allure to crypto-investors lies within the ease of trading. There are no regulations other than Anti-Money Laundering (AML) regulations in place, and as long as one performs their trading within the confines of the law, they are free to do what they want. 

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Cryptocurrency trading companies do exist in Portugal, but since they are taxed on their income, as it falls under corporate taxation, most investors prefer to do their trading themselves. This is amplified by the low restrictions and ease to do so without hassle.

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Another major point driving cryptocurrency investors to Portugal, other than its ranking as the most friendly developed cryptocurrency nation in the world, is its exemplary economy. 

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The Portuguese economy continues to grow, as evidenced by its swift recovery from the strain of the pandemic and continuous GDP growth ever since. Portugal was even named as one of the top 10 most attractive European countries for foreign direct investment (FDI) by Ernest & Young.

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This ripe economic landscape and the absence of cryptocurrency tax, all wrapped in a beautiful landscape within a lively and diverse country, have transformed Portugal into the hottest destination for crypto-investors looking to enhance their wealth while enjoying a fantastic living standard. 

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However, there is one more attraction to consider, as many crypto-millionaires have astutely diversified their asset base and now own more than one source of income, which they will inevitably be taxed on; a matter Portugal to which Portugal also offers a solution.

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Through its Non-Habitual Resident Tax Scheme (NHR), new residents in Portugal can obtain a decade's worth of outstanding tax exemptions and benefits, especially in terms of income tax which, under the NHR, is paid at a low flat rate. The NHR scheme also provides greater flexibility, as should a person qualify for a lower tax rate under the traditional tax regime in any particular year, they can opt to pay that tax rate and then convert back to NHR the following year. 

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While countries continue to crack down on cryptocurrencies through decimating regulations and taxes, Portugal continues to take massive strides in attracting the best crypto-investors the world has to offer; especially since its illustrious golden visa program allows foreigners to obtain Portuguese residency through affordable investments. 

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Crypto-investors can easily obtain a residence permit that does not require them to live more than seven days a year in Portugal to qualify for citizenship after five years, in exchange for an investment in real estate or loan capital. The idea of extended physical freedom that the golden visa provides perfectly complements the premise of financial freedom that comes with cryptocurrency, making it an absolute perfect concoction for crypto-investors looking to have their cake and eat it too. 

To know more about cryptocurrency trading in Portugal or the golden visa, contact us today to book a free, comprehensive consultation with one of our experts.