Cryptocurrency is an increasingly common mean of generating wealth and doing business online and Portugal has become a tax haven for those using cryptocurrency, even having one of the best tax systems in the world for these situations.
Investors from all over the world choose Portugal as their destination for their crypto activity because it is one of the few countries in the world that does not tax income from investment in cryptocurrency in general.
The Tax Authority has been considering that income obtained through cryptocurrency does not fall into any taxable category of income, only considering the possibility of taxing such income when it can be considered as professional income, i.e. proof is required that the income has a regular recurrence and that it constitutes the professional activity of the cryptoscope investor.
In practice, the Tax Authority’s understanding of cryptocurrency is that the income generated is not taxed, unless it is the result of the profession of its holders.
This tax exemption makes Portugal one of the most attractive countries for companies and individuals who have cryptocurrency as part of their investment portfolio.
In addition to this tax advantage, there are others, namely the possibility for these investors to also obtain the Non-habitual Resident Status, which translates into huge tax advantages for foreigners who have not been considered residents in Portugal in the last five years and who come to live in Portugal.
