Bitcoin trading and payments are now tax-free in Portugal

Bitcoin trading and payments are now tax-free in Portugal

As it was reported on August 27, the tax authority of Portugal has affirmed that and crypto trading and crypto payments won’t be taxed in their country.

According to information published by Portuguese Jornal de Negócios on August 26, the authority has approved that cryptocurrency activities and payments in crypto are excluded from VAT.

In the authorized verdict document, the authority declares that the swap from crypto to fiat is free of VAT and that users of crypto don’t have to pay any income taxes.

Previously the Portuguese authority published the verdict that cryptocurrencies aren’t taxed in Portugal and after that, the confirmation comes. A paper which was declared in 2016 says that revenue from the crypto selling in Portugal is not going to be charged by an income tax.

In early 2013, the Banco de Portugal declared a statement citing a 2012 crypto-related exposition by the European Central Bank.

The Portuguese bank mentioned about the concerns over the ECB’s Bitcoin recognition as a “phenomenon of innovation in digital currency models,” claiming that Bitcoin cannot be considered a safe payment method as it’s created by uncontrolled entities.