Digital currency Adoption and trends in Portugal in 2021
own digital currency
It is estimated that over 240 thousand people, 2.37% of Portugal’s total population, currently own digital currency.
Portugal is fast becoming the number one country for anyone involved in digital currencies, especially long-term investors and retail traders. Official statistics clearly show that immigration to Portugal is growing a lot year after year, and a good chunk of these expats are young people below the age of 40.
The main reason for the enthusiasm about Portugal from people involved in the digital currencies space is that digital currencies earnings are tax-free in Portugal. In a 2016 official ruling, the Portuguese Tax Authority analysed the possible classification of digital currencies within certain types of income that are subject to Portuguese tax, notably capital gains, capital income and income from business activities, and decided that, as a general rule, natural persons should not be taxed in respect of gains derived from the valuation or sale of digital currencies, except that, in the case of sale of digital currencies, if they correspond to the individual’s main recurrent activity, income obtained from such activity could be subject to Portuguese tax. It should also be noted that this was only a partial decision that did not elaborate on other types of income derived from other digital currency-related activities (e.g. mining and farming activities).