Imagine living in Portugal. You would have a rented house on the beach, earn money from crypto, and not have to pay any taxes. Does that sound like a fantasy? Maybe not. Portugal offers a special program that allows you to move there and earn money. You will then receive incredible tax breaks – especially if you trade on the cryptocurrency exchange. How does it all work and why should you consider it? We will try to explain that in this article.
Article content:
Portugal – European cryptocurrency haven
Portugal is an inconspicuous country in the European Union, but it keeps up with the times. For many years, it was known as a cryptocurrency tax haven because it had a zero tax rate on crypto. This was greatly aided by a 2016 tax administration decision that cryptocurrencies were not subject to taxation. Four years later, the government launched so-called free zones to test new blockchain technologies. The stubbornness of the Portuguese is also evident in how long it took them to appoint a supervisor for crypto service providers after the introduction of the European MiCA regulation.
Zero taxation in Portugal – Is it all gone forever?
Unfortunately, zero taxation in Portugal only applied until 2023. At that time, a decision was made to change the law, and crypto held for less than 365 days began to be taxed at a rate of 15%. However, you can avoid this. From 2024, there will be an option to achieve zero taxation much earlier. All you have to do is live in Portugal for six months and register for local taxes. Does that sound complicated? It’s actually not.
You might like: BITmarkets
Digital nomadism in Portugal
Digital nomadism is a new way of life. If you earn money online, it often pays to move to another country. You pay lower costs there and can also get to know a different landscape. According to estimates, over 40 million people worldwide live this “nomadic” lifestyle. In Portugal, there are only about 100,000 of them, but they still form a significant and growing group. This is also indicated by the fact that Portugal appears at the top of nomadic websites.
How to become a tax resident in Portugal?
If nothing is keeping you in Czechia, you can move to Portugal. All you need to do is live there for 183 days a year and you have the right to become a tax resident. As an EU citizen, you do not need a visa – just register with the Portuguese Foreigners and Borders Service (SEF) and apply for a free certificate. This is officially enough to ensure that you do not have to pay tax on your crypto earnings in Portugal. Of course, this applies to small and medium-sized traders – big players on the stock exchange are subject to different tax rules in Portugal.
Don’t miss: Millionero
What are the risks of digital nomadism in Portugal?
Portugal offers ideal conditions for digital nomadism. What’s more, food and housing are cheaper there than in Czechia. It seems like the perfect combination. So could there be any problems?
The chances are slim, but they do exist. After a while, the Portuguese authorities may ask you to register with a Portuguese insurance company. If your business becomes too profitable, you may find yourself in the business category, where taxes are as high as 48%. And then there is one of the most common risks – if you are only in Portugal for appearances’ sake, but in reality you decide to continue living in Czechia, the authorities will find out. And then they will want you to pay taxes here. In short, it is a relatively narrow path that you must follow in order to live as a digital nomad in Portugal. On the other hand, there are not many obstacles, so living in a southern country by the sea may be an attractive alternative for the winter of 2025.
Read more: Is it worth investing
