The Taihuttu family, also referred to as the Bitcoin family, gained fame worldwide for devoting their lives to Bitcoin. They sold their assets in 2017, invested in Bitcoin. It was selling at $900 at the time, and travelled the world.
After visiting over 40 nations, the Dutch family comprising a husband and wife and three daughters have eventually settled in Portugal. Therefore, a genuine bargain for cryptocurrency investors. Didi Taihuttu noted that there are no capital gains tax or anything of the sort on cryptocurrency in Portugal. Taihuttu is the family patriarch.
Personal Income Tax in Portugal
People now regards Portugal as one of the most appealing destinations for such investors. The present system lacks of regulations in this sense. It does not permit the taxation of the revenues made by cryptocurrencies. This is even though Spain and France already have regulations in place. People not officially regard cryptocurrencies as currencies or financial assets. As a result their profits are not reflected in capital or financial gains.
Capital gains originating from cryptocurrency transactions are not liable to personal income tax in Portugal. This includes the acquisition and transfers between coins. This is as per Shehan Chandrasekera, director of the specialized software company CoinTracker.
In 2012, the Portuguese government implemented the so-called non-habitual tax residence (NHR), which absolves foreigners from paying taxes on income earned outside Portugal. This has prompted many individuals to relocate to this country to escape paying taxes. Portugal is now a tax-free destination for trading cryptocurrencies. It appears that this remains, as they anticipates that no amendments for the upcoming fiscal year.
Non-Habitual Resident Regime
Regrettably, for many, certain activities are charged for residents of Portugal who are in the non-habitual resident system. As per Relocated&Save, a digital expert specializing in tax residency changes, it is vital to be precise about the regularity of trade and the professionalization regarding the trade of cryptocurrencies. For instance, if one is an NFT artist, the Portuguese government regards their earnings to be business revenue, and, as a result, they are taxed at a rate of 20%.
Taihuttu admits that the benefits that drew him to Portugal would be less appealing if he devoted himself to other activities. He claims that if one gains cryptocurrencies by delivering services in Portugal, they must pay the taxes; however, he currently does not make anything in Portugal. As a result, it’s a 0% tax for him. Another benefit is that they can keep their nomadic family lifestyle without settling in the country. He emphasizes that there is no obligatory stay restriction in Portugal.
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