Income from the sale of cryptocurrencies in Portugal has been tax exempt since 2018. Traditional investment income-which currently does not include cryptocurrency investment income-is taxed at more than 20%. In recent months, Portugal has also been the focus of some of the biggest cryptocurrency-related events, including the Solana Breakpoint Conference in November 2021.
The growing cryptocurrency scene in Portugal made Lisbon-the capital city-figured in Decrypt's list of the 15 most influential cryptocurrency cities in the world for 2021.
As such, Portugal differs from other countries such as the United States, which treat virtual currencies as property and employ a tax system similar to that of stocks or real estate. In the Portuguese country, it is seen as a method of payment, which means advantages, Shehan Chandrasekera, director of software specialist firm CoinTracker, told CNBC. "Capital gains resulting from cryptocurrency transactions, such as cashing out and transactions between cryptocurrencies, are not subject to personal income tax."
Portugal's conditions for large crypto owners have led some to call it a "tax haven" for European cryptoassets. A label not immune to debate in the country itself. Columnist Sérgio Guerrero published an article this month in La Comuna, one of the country's most popular dailies, arguing for the "urgency" of legislating on cryptocurrency income, to make it fiscally similar to other financial income. "Portugal continues to this day without taxing the profits of cryptocurrencies, while Spain and France already have legislation in this regard," denounced Guerrero, who pointed out the "legal vacuum" that exists in the Portuguese country and hoped that the new debate would be addressed in the new legislature.
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✅ Taxation may be very beneficial in Portugal, but banks are always "another matter".
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