Portugal’s tax exemption on “crypto” has made the country a popular destination for cryptocurrency traders.
Portugal’s days as a tax haven for cryptocurrency investors may be coming to an end though. It is reported that the government is planning to introduce new regulations on “crypto” assets.
Currently, Portugal does not treat cryptocurrencies as assets, but rather as currencies, which means that while companies that provide services with “crypto” pay taxes, individuals who invest in cryptocurrencies do not.
This may be due to a gap in the regulatory system, rather than an elaboration that would actually allow for tax exemption. Even so, the lack of tax levy on cryptocurrency earnings has made Portugal a popular destination for traders, with some even calling the country “the bitcoin paradise.”
The government of Portugal has not yet announced specific dates for the presentation of the new regulations.