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Cryptocurrency Is Tax Free In Portugal

The Portuguese Tax and Customs Authority (PTA) has announced that buying and trading cryptocurrencies is tax-free in Portugal.

 

Personal gains generated on currencies, including cryptocurrencies, are not subject to capital gains or VAT in Portugal. For example, if you buy $1 of Bitcoin and sell it when it is worth $1.50, you will not be taxed on the gain ($0.50).The same is true if you purchase USD or GBP and the value of the dollar or pound rises. Because it is a currency, you will not be taxed on the capital gain. Stocks and other types of investments are handled differently.

 

The statement occurred at the same time as the Internal Revenue Service (IRS) declared a cryptocurrency crackdown. Portugal, on the other hand, has chosen a different approach: it has stated that purchasing or selling cryptocurrencies would not be subject to capital gains or value-added tax (VAT).

 

There are several exceptions: receiving bitcoin in exchange for products or services does not change the tax treatment of the original transaction, and taxpayers who deal in cryptocurrency as a professional or corporate activity must still pay some taxes.

 

There are several exceptions: receiving bitcoin in exchange for products or services does not change the tax treatment of the original transaction, and taxpayers who deal in cryptocurrency as a professional or corporate activity must still pay some taxes. which exempts from VAT “transactions, including negotiation, concerning currency, bank notes, and coins used as legal tender, with the exception of collectors’ items, that is, gold, silver, or other metal coins or banknotes which are not normally used as legal tender or coins of numismatic interest.”

 

This means that bitcoin will be treated as a kind of currency in Portugal, exempting it from VAT and capital gains taxes. This is consistent with Portugal’s position on other currencies: no gains or losses on the sale or purchase of any currency are taxed.