Tone

Crypto-Friendly Countries. Part 2: Portugal

June 7th, 2023

More and more nations recognize cryptocurrency as legal tender.
These nations will be looked at in this series.
The next stop is Portugal.

tr;dr

  1. Portugal, one of Europe’s oldest countries and an EU founder, will become part of the MiCA.
  2. The scenery, low cost of living, pleasant climate,
    and environment that is crypto- and tech-friendly all attract digital nomads.
  3. The new tax rules are friendly for hodlers and expensive for traders.
  4. Portugal has ten crypto ATMs as well as some notable local businesses and events.

The history of Portugal

Portugal is one of the oldest countries in Europe.
It’s history dates back to 400,000 years ago, when Homo heidelbergensis inhabited the region.
During Europe’s “Age of Discovery” in the 1500s and 1600s, Portugal became a world power.
Brazil declared independence from Portugal in 1822,
leaving Portugal’s overseas empire largely African and with small holdings in Asia.
Portugal underwent a revolution in 1910, a dictatorship from 1926 to 1974,
and the Carnation Revolution in 1974.
This led to the collapse of the right-wing dictatorship and the introduction of democratic reforms.
In 1986, Portugal became a founding member of the EU and has a stable democracy.

General

Despite 2023’s crypto income and transfer tax changes, Portugal’s tax-friendly rules entice crypto investors.
However, Blockchain technology has improved Portugal’s tech and business sector especially for its youth.

The new Digital Nomad Visa from Portugal permits remote workers to live and work in the country for up to two years.
This visa is for non-EU citizens.
Portugal attracts digital nomads with its stunning scenery, cheap cost of living, and crypto-friendly taxes.

Portugal has a temperate climate influenced by the Atlantic Ocean, with average temperatures between 16°C and over 30°C.
The Azores and Madeira archipelagos have subtropical climates with average temperatures around 20°C.

Regulations

Portugal allows trading and keeping coins without restrictions.
It will follow the rules for Markets in Crypto-Assets because it is a part of the European Union.
This will go into operation sometime between the middle of 2024 and the beginning of 2025.
Here is a link to my article about the MiCA.

Tax

In 2023 the Portuguese Personal Income Tax Code defines crypto as “digital representations of value or rights that can be transferred or stored electronically using Distributed Ledger Technology” (DLT).

Here are the key facts:

Crypto income is now self-employment, capital, or capital gains.
When made with regular Fiat money, cryptocurrency sales that have been kept for less than 365 days are taxed at a flat rate of 28% on capital gains.
When a Portuguese resident worker chooses to combine their income, this changes to a rising tax rate of between 14.5% and 53%.
Leaving Portugal and becoming a non-tax resident is a sale for capital gains tax.

Friendly for hodlers and expensive for traders.

 

Crypto ATMs

According to coinatmradar.com there are 10 crypto ATM all over Portugal.
While this is remarkable for such a small country, you have to be aware of the high fees.

Facts

Lunar Strategy is a Web3 native marketing team focused on community growth, strategic partnerships, and authority.
It has it’s headquarter in Portugals capital city Lisbon.

There are several events related to crypto/Web3/NFTs in Portugal this year, like:
BlockDown
Non Fungible Conference
and some ambitious startups.

Conclusion

There are many reasons why Portugal is a popular place for digital nomads and crypto and tech friendly.
It’s a safe and friendly place where many people know English.
Accommodation and meals are reasonably priced, internet connections are fast, and the weather is pleasant.

Just picture yourself taking your laptop to this beach and creating the next great Web3 company.

Twitter thread

 

 

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