This post was most recently updated on February 4th, 2023
Bitcoin is legal and widely used in Portugal. Along with Bitcoin, other forms of Cryptocurrencies are also legal in Portugal.
Is Bitcoin tax-free in Portugal?
Portugal’s 2023 budget draft proposal, which was released on 17 October 2022, has included information on crypto tax income. Under the new proposal, there will be a 28 percent income tax on cryptocurrencies held for less than a one-year period.
The tax would only be applicable to crypto owned for less than a year. Gains from crypto held for longer than this period of time (365 days) would still be exempt. Free crypto transactions would be taxed and there would be a 4 percent rate applicable to commissions charged by intermediaries.
Alongside this, crypto transactions would also be subject to taxation. Authorities will also treat gains from the issuance of cryptocurrencies and mining operations as taxable income.
Before that date, there was no tax on Bitcoin in Portugal.
Is Portugal cryptocurrency-friendly?
Yes, Portugal is very much a crypto-friendly country. Portugal is one of the most economically innovative countries in Europe, and being a crypto-friendly country has helped a lot for Portugal to grow.
Is Bitcoin mining illegal in Portugal?
It is legal to mine Bitcoin in Portugal. There are no restrictions in Portugal on the mining or farming of Bitcoin.
There is no standalone reporting obligation in the case of Bitcoin payments above a certain threshold, except in the case of transactions that may involve an obliged entity covered by anti-money laundering and terrorist financing laws, in which case such entity will have to report suspicious transactions or activities irrespective of the amounts involved.
Does Portugal have a Bitcoin ATM?
Does Portugal use Bitcoin ATM?
According to Coin Atm Radar, Lisbon has currently (January 2023) 2 Bitcoin ATMs which are fully functional. One is in Cotton Club Laundry and Cafe and another is in Castilho Cafetarias.
The direction of Cotton Club Laundry: R. Andrade 15 15 A, 1170-016 Lisboa, Portugal
The direction of Castilho Cafetarias: R. Maj. Afonso Palla 25A, 1495-001 Algés, Portugal
Can I buy property in Portugal with Bitcoin?
It is possible to buy property in Portugal with Bitcoin. It has recently become possible to purchase properties in Portugal with Bitcoin, and properties have been sold already using Bitcoin as a payment method.
However, many purchasers do not want to accept payment in Bitcoin, as they are concerned about its volatility.
Which bank in Portugal accepts Bitcoin?
All the banks in Portugal accept Bitcoin, however, they block transactions of bitcoin and other forms of cryptocurrencies from time to time because of allegations of fraud. Millenium BCP and Activobank are two such banks that are alleged to have blocked cryptocurrency transactions.
What Bitcoin wallet can I use in Portugal?
There are a lot of Bitcoin wallets that you could use in Portugal. Some of them are, Coinmama, Bitstamp, Bitpanda, Paybis, Coinbase, Coinbase Pro, and Kriptomat.
Can I use Bitcoin to buy products in supermarkets in Portugal?
No, small supermarkets in Portugal don’t use Bitcoin. However, you could use bitcoin in big Malls. The government of Portugal is trying to bring Bitcoin to supermarkets and small shops too.
Previously, there was no tax on Bitcoin in Portugal. But, now there is 28 to 35 percent of the tax is applied. With that much tax, it’s hard for small supermarkets to deal with Bitcoin.
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