Portuguese tax authorities: Bitcoin trade and payments tax free

What a progressive policy from Portugal! The Portuguese tax authorities say that the trade in cryptocurrency and payments in crypto are not taxed in Portugal. You do not pay VAT if you buy bitcoin, ether or other coins. But no income tax is charged either.

At the request of miners

This statement was made in response to a request from Portuguese miners. The tax authorities responded with an official government document

In the document, the authority states that the exchange of bitcoins for euros is VAT-free and that crypto-owners have to pay income tax.

Inspiration from the past

In the official statement, the Portuguese tax authorities quoted a 2015 ruling by the European Court of Justice. This concerned the case concerning the Swedish portal Bitcoin.se and his moderator David Hedqvist.

The court then declared that bitcoin is a means of payment and that the Swedish exchange is therefore exempt from VAT obligations. However, the Swedish tax authorities then argued against the ruling and claimed that the court did not fully understand the case.

Previous point of view on crypto

The confirmation follows a previous tax ruling from the Portuguese tax authorities, which already stated that cryptocurrencys are not taxed in the country. A document published by the agency in 2016 states that income from the sale of crypto in Portugal is not subject to income tax.