Portugal has become a place that is increasingly attractive to investors worldwide. The reason is simple, Bitcoin and altcoins are regarded as currency, and investors are tax-exempt when taking profits. Only professional entities or businesses are being taxed when they are actively participating in the market. But it seems that some political parties like to extend taxes and formulated two proposals.
What has changed the situation in Portugal and why were these proposals rejected?
Congress rejects proposals
The Assembleia da República – Portugal’s congress – has dismissed two proposals this week which aimed to change the taxation on crypto. Finance Minister Fernando Media made it clear a few weeks ago that he would like to end the country’s status as tax heaven. But Media’s reform failed since congress voted against his proposal.
The other proposal that was rejected came from two of the left-wing parties who suggested that individuals should be imposed taxes if they earn profits of more than 5.000€ per year from crypto. It seems that Portugal will maintain its position as a crypto hub in Europe.
Didi Taihuttu plans to build a Bitcoin village
The Bitcoin Family is looking to settle down in Portugal because of the favorable conditions for crypto investors. According to a report on CNBC, Didi and his family are looking forward to building a whole Bitcoin village.
Investors can buy land plots as an NFT and settle down at the Algarve enjoying a tax-free living as long as they stay within the broader crypto ecosystem. It remains to be seen if the situation will stay this way. Should the economic situation tighten in the next few years congress might change its opinion and change the law. The more crypto investors decide to move abroad and live in Portugal the more attractive it would become to tax them.