Search Coins

Telegram Argues that Its Gram Token Is Not Security

www.coinspeaker.com6 minutes ago
0

FATF Raises Money Laundering Concerns Over Libra and Stablecoins

cointelegraph.com20 minutes ago
0

Ripple’s Breanne Madigan highlights the United States’ lack of regulatory clarity

eng.ambcrypto.com23 minutes ago
0

Congress Senator Just Gave A Thumb Up to Libra

cryptodaily.co.uk24 minutes ago
0

Huobi to Launch Fiat Platform with Lira-Tether Pairing in Turkey in Q4 2019

www.coinspeaker.com25 minutes ago
0

Digital Securities Exchange Taps R3’s Blockchain for Post-Trade Activities

www.coindesk.com28 minutes ago
0

Charles Schwab Brokerage Firm will Allow Investors to Trade Fractions of Stocks

www.coinspeaker.com38 minutes ago
0

Mark Zuckerberg Defends Freedom of Expression but Not Mentions Libra

www.coinspeaker.coman hour ago
0

Libra, other stablecoins could hinder efforts to halt criminal use: FATF

eng.ambcrypto.coman hour ago
0

Ripple CEO claims to sign over 30 deals a week with financial institutions for blockchain payments

www.theblockcrypto.com2 hours ago
0

Fake Tor Browser Has Been Spying, Stealing Bitcoin ‘For Years’

www.coindesk.com2 hours ago
0

Raiffeisen Among 18 Banks in First Global Tokenized Collateral Trial

cointelegraph.com2 hours ago
0

Huobi To Start Tether Trading For ‘Important’ Turkey Lira By End Of 2019

bitcoinist.com2 hours ago
0

Crypto-jackers now using fake WordPress plug-ins to mine cryptocurrencies

eng.ambcrypto.com2 hours ago
0

Huobi announces plans to launch fiat gateway in Turkey

eng.ambcrypto.com2 hours ago
0

G-7 Task Force Releases Full Report on Impact of Global Stablecoins

cryptopost.com3 hours ago
0

Libra Roundup: G7 Voice Concerns, Senator Adds Support, New Study Emerges

bitcoinist.com3 hours ago
0

AltOne CEO Implicated in Possible Data Transaction Token Exit Scam

altcoin.media3 hours ago
0

Local Cryptocurrency To See Launch for Ise-Shima Region in Japan

cryptodaily.co.uk3 hours ago
0

NEM (XEM) Rises on News of Catapult Tokens Launch

cryptovest.com4 hours ago
0

Bermuda Premier: Cryptocurrency a Great Equalizer Against Big Tech

cointelegraph.com4 hours ago
0

Upbit Operator Dunamu to Build OTC Stock Platform

bitcoinist.com4 hours ago
0

Huobi launching fiat-to-crypto gateway in Turkey later this year

www.theblockcrypto.com4 hours ago
0

R3 partners with London-based Archax to manage post-trade activites

eng.ambcrypto.com4 hours ago
0

New Tax Form Requires IRS To Question Your Crypto Ownership

cryptodaily.co.uk4 hours ago
0

Portugal Could Be a Tax Haven — Not Only for Crypto Traders

Sep 21, 2019 7:57 AM +00:00
0

The Portugal Tax Authority announced tax-free cryptocurrency trading, adding to the tax benefits already offered by the national government.

The Portugal Tax Authority (PTA) announced last month that cryptocurrency trading and payments in crypto would not be subject to value-added tax (VAT).

According to the announcement, cryptocurrency payments that are subject to the provision of services under Article 9 (27) (d) of Portuguese tax law are exempt from VAT. This applies only to individuals, as Portugal-based businesses are still subject to several taxes such as VAT, social security and income taxes.

This announcement follows another Portuguese tax benefit for cryptocurrency traders: Ruling 5717/2015, which declares that proceeds from the sale of cryptocurrencies for individuals will be tax free. According to the ruling published in February 2018, the sale of cryptocurrencies does not qualify as capital gains if the tokens are derived from the sale of financial products as defined in Portuguese law, which are normally subject to a 28% tax rate. In addition, cryptocurrency trading will not be considered investment income, which is also subject to a 28% tax rate under other circumstances.

As the ruling applies only to individuals, business income derived from trading or other activities are subject to progressive rates for personal income tax. 

To anyone who is familiar with the Portuguese tax regime, these two rulings are not surprising. In fact, Portugal is considered to be a very friendly country for taxpayers, with regulations specially designed to attract wealthy and high-net-worth individuals.

While customarily paid in many other countries, Portugal has no inheritance, gift or wealth taxes levied on its residents. 

These significant tax benefits are reserved for nonregular tax residents in a bid to attract high-value professionals from all over the world. Multiple professions within STEM and the arts are considered to be of high value and range from architect to investor.

These high-value, nonregular groups enjoy a 25% rate on income taxation, avoid a tax of up to 48% that is applied to other resident groups, and pay a 28% tax rate on dividends, capital gains and investment income — which is why the Portuguese government including cryptocurrency investors and traders comes as no surprise.

If all of the above is convincing enough to relocate to Portugal, the residency rules are worth checking.

A person is considered a resident of Portugal if they spend more than 183 days (consecutive or not) in Portugal during any 12-month period. A person who becomes a tax resident in Portugal and has not been taxed as a resident in Portugal for the previous five years may apply for the special tax regime for nonhabitual tax residents. However, in five years’ time, there might be more countries treating cryptocurrency trading as a tax-free activity.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Or Lokay Cohen is the vice president at Bittax, a crypto tax calculation platform. Or has 10 years’ experience with regulation and managing a leading tax consultant firm. She holds an LL.M. law degree, a B.A. in communications and an M.A. in management and public policy. In her work at Bittax, Or promotes the goal of bridging cryptocurrency to the taxation reality to enable tax reporting under a clear regulatory framework and specific identification methods.

Share This Article


Get the most out of CoinFi News!

Save coins into your Watchlist and be the first to know about the latest market moving news.