Reshab AgarwalEurope’s Bitcoin heaven with zero percent tax on crypto gains is Portugal. The country has been one of the isolated nations in Europe that investors describe as a crypto paradise because of its friendly regulations. Since Portugal is one of the remaining countries in Europe treating crypto as a currency, the gains on trading aren’t taxed.
Portugal also became the first country where an entire house was purchased with cryptocurrency. The buyer paid 3 Bitcoin, and there was no fiat involved in the transaction.
Portugal’s lenient laws
The country has been looking to get in foreign cash and investments by offering tax breaks and visas to investors and working people who operate digitally. Their lenient tax structure has made it appealing to shift to the country and amass a lot of wealth. However, it will be essential to see how long the authorities continue this, as sooner or later, they will have to raise taxes.
The zero percent tax might not last very long
Image Source: Cointribune
Portugal’s crypto regulations are very different from the ones in other countries in Europe. And therefore, the pressure to adopt a common framework is building up, said its finance ministry. Other financial assets are taxed in the country, but for crypto, it’s 0% which is hard to justify said a representative of Criptoloja, Portugal’s first registered crypto exchange.
Even a tax lawyer from London said that he doesn’t advise investing in Portugal despite this lenient tax system. He also said that in the next 10 years London could become more lenient than Portugal.
The country could also face trouble if the crypto markets tumble even further. There are many analysts predicting that crypto is a bubble, and its dynamics are similar to the sub-prime mortgage bubble that triggered the 2008 financial crisis. So, strong regulations to keep things in control are absolutely necessary.
Unless you are heavily dependent on your income from crypto and the country you are in taxes it exorbitantly, it might not be a good idea to shift to some other country. For now, the tax system in Portugal might seem excellent but external pressure might not take long to change this.
What are your thoughts on Europe’s Bitcoin heaven with zero percent crypto tax? And do you see yourself leaving your country and settling there? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: India’s Finance Minister calls anonymity in blockchain a risk factor.