Portugal’s Tax Authority has announced that trading cryptocurrency and payments in crypto are tax-free in the country.
The news was first reported in a local paper ‘Jornal de Negócios’. The paper reviewed an official document from the Tax Authority in response to a local crypto mining company, which confirmed that buying or selling cryptocurrencies is free of VAT (value-added tax).
In the official statement, the Portuguese tax authority refers to a 2015 ruling by the Europen Court of Justice on a case against major Swedish Bitcoin exchange Bitcoin.se. The court found that Bitcoin is a means of payment and that the exchange should, therefore, be exempted VAT obligations.
The confirmation follows a previous tax ruling in 2016 states which states that income from the sale of crypto in Portugal is not subject to income tax.
“Mentally I can already see the picture of talented people moving from countries that tries to ban #crypto to Portugal now“. Changpeng Zao, Binance CEO.