Are bitcoin transactions taxed in Portugal?

Income tax in Portugal is based upon activity and the profit made from it. This means that while Portugal Bitcoin transactions themselves are not taxed, if the transfer of Portugal cryptocurrency is associated with a product or a service, then an invoice must be issued, and the service must also be taxed.

Is cryptocurrency tax-free in Portugal?

For individual investors, cryptocurrency is currently tax-free in Portugal. Cryptocurrency is not subject to capital gains tax or value added tax (VAT). If you’re considered a professional trader, your cryptocurrency profits will be subject to income tax. In 2023, Portugal will be introducing cryptocurrency taxes.

What is the current tax rate for investment in Portugal?

As for her local clients, Duarte said there's concern, with both individual and corporate entities seeking clarification and certainty on the government's proposal. The current capital gains tax rate for financial investment in Portugal is 28%. Portugal's changed stance on taxes brings the country in line with many other nations around the globe.

What is a non-habitual tax regime in Portugal?

Investors in Portugal who have not been a tax resident in the country for the previous five years can benefit from the non-habitual tax regime. Under the NHR program, capital gains are taxed at 28 percent for all assets, which includes crypto.