Capital gains from the sale of bitcoins or other cryptocurrencies are not subject to taxes in Portugal, according to the Ministry of Finance
Investor interest in digital currencies is growing after the recent euphoria surrounding the most valuable cryptocurrency, bitcoin. And who wants to invest in these currencies has an incentive in Portugal. It is that the profits from your sale are not subject to taxes in Portugal. The information is from the Ministry of Finance: “The sale of bitcoins is not subject to IRS taxes against the Portuguese tax system, especially in the category E – Capital – or G – capital gains,” he told DN/Mad Money an official ministry source. Only capital gains will be taxed “when, due to its regularity, it constitutes a professional or business activity of the taxpayer, in which case it will be subject to taxation in category B”, he added.
Pedro Gaspar is a paid employee and recently started mining, that is, creating another digital currency: Monero. Do not declare in your IRS the capital gains obtained with the sale of criptomoedas. “I got informed with a lawyer and in Portugal there is a legal vacuum,” he said.
But the situation is not clear and the investor reveals some concerns. “How do you know if it is an investment or a professional activity?” He asks. Therefore, you have some precautions in your transactions. “When I sell, I prefer to do the business directly with the buyer (peer-to-peer) and receive the payment in cash,” he said.
Ricardo Filipe, on the other hand, lives on the purchase and sale of bitcoins and chooses to declare the profits earned with that activity. “I want to be careful not to have problems in the future.”
In view of the doubts, some digital currency enthusiasts in Portugal are considering having a base in Malta, a country where the effective tax rate for non-residents is only 5%.
Clearer for Finance is the taxation of value-added tax (VAT) on goods and services purchased with cryptocurrencies. “According to information from the Tax Authority, the products bought with bitcoins pay VAT,” said the official source of Finance.
Source: Diario de Noticias