Portugal: this is the exemption of taxes on cryptocurrencies and other tax advantages.

The Portuguese Tax Authority (ATP) announced last month that trade and payments with cryptocurrencies would not be subject to value-added taxes (VAT), as reported by a local media.

According to the announcement, payments with cryptocurrencies that are subject to the provision of services under the terms of article 9 (27) (d) of the Portuguese tax law are exempt from VAT. This only applies to natural persons, since companies based in Portugal are still subject to various taxes, such as VAT, social security and income tax.

This is just one of the points that show the tax advantages that can be exploited by cryptocurrency users in Lusitanian lands.

Decision 5717/2015 is another announcement that benefits the use of cryptocurrencies in Portugal. The law states that the proceeds of cryptocurrency sales in natural persons will be tax exempt. According to the decision published in February 2018, the sale of cryptocurrencies is not classified as capital gain if the cryptocurrencies are derived from the sale of financial products, as defined in Portuguese law, which is normally subject to a 28% tax rate .

In addition, cryptocurrency trading will not be considered an investment income, which is also subject to a 28% tax rate in other circumstances.

For those who know the Portuguese tax regime, these two decisions are not surprising. In fact, Portugal is considered a very favorable country for taxpayers, with regulations specially designed to attract professionals with knowledge in the area of ​​cryptocurrencies.

In addition to the exemption in cryptocurrency transactions, Portugal – unlike many European countries – does not charge inheritance taxes, gifts or fortunes to its residents. This is one of the important tax benefits reserved for non-regular residents, as a strategy to attract high-value professionals from around the world.

With these exemptions, Portugal seeks to attract mainly those who adjust to professions in STEM (Science, Technology, Engineering and Mathematics, for its acronym in English) and the arts, which are considered of high value, in addition to architects and investors, among others.

These non-regular high-value groups pay a 25% income tax rate, against a 48% rate that applies to other resident groups, in addition to a 28% tax rate on dividends, capital gains and investment income – Which may explain why the government exempts some cryptocurrency operations for other taxes.

Moving to Portugal
If these seemed sufficient reasons to move to Portugal, it is worth checking the residence rules.

A person is considered a resident in Portugal if he spends more than 183 days (consecutive or not) in Portugal for a period of 12 months. A person who becomes a tax resident in the country and has not been taxed as a resident in Portugal in the last five years may apply for the special tax regime for non-habitual tax residents. However, within five years, there could be more countries treating cryptocurrency trading as a tax-free activity.

Source: criptonoticias.com

Image: Pixabay

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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