In a story likely to spark a lot of new ideas in Portugal’s finance ministry, US news channel CNBC reported that “the patriarch of the so-called Bitcoin family is moving to Portugal, the ultimate crypto tax haven of Europe”.
After “spending time in 40 countries”, Didi Taihauttu and her family discovered that Portugal is “one of the last places in Europe” with a 0% tax on bitcoin.
“You don’t pay any capital gains tax or anything else in Portugal on cryptocurrency,” Taihuttu said. As long as you don’t earn cryptocurrency for providing services in Portugal, you’re in the clear.
“It’s a very beautiful bitcoin paradise,” says the 43-year-old father of three who traded all his possessions in 2017 for bitcoin “and a life on the road,” and ended up with what CNBC described as a bitcoin fortune. , “kept in secret vaults on four different continents”.
“With this type of crypto stake, the tax advantages in Portugal are certainly a big draw, although it doesn’t hurt that the country offers a safe and enjoyable way of life. In 2021, the country ranked fourth on the Global Peace Indexand he’s at the top of the list best countries for expats“, says CNBC.
But the Bitcoin family isn’t just focused on enjoying the fruits of their investments in Portugal’s comparative safety and convenience: they seem determined to make even more money by creating a kind of crypto village for fellow crypto enthusiasts. Bitcoin attracted by the idea of paying no taxes. .
Didi Taihuttu’s own siblings “may also move”, the news channel said. “Didi’s brother and sister are selling their houses and investing that money in bitcoin,” we are told.
CNBC explains Portugal’s “beauty” as a crypto tax haven: “Unlike the United States, which handles virtual currency as property, taxing it the same as stocks or real estate, Portugal considers cryptocurrencies as a form of payment. This distinction changes the situation in terms of taxation.
“Capital gains from crypto transactions such as cashing in and crypto-to-crypto exchanges are not subject to personal income tax,” explained Shehan Chandrasekera, CPA and head of the firm’s tax strategy. CoinTracker.io crypto tax software.
“This means that, as with other fiat currencies, gains from buying or selling cryptocurrency are not taxed. It also means that crypto transactions or payments, as well as the exchange of bitcoins for fiat currency, are not subject to value added tax, or VAT.
“It makes Portugal a really attractive place for crypto users,” Chandrasekera continued.
“The only exception to the country’s generous crypto program are companies registered in Portugal that deal in crypto. These companies are subject to taxes in certain circumstances.
But these do not affect the Bitcoin family, which simply runs its business for itself.
CNBC goes on to detail plans and companies focused on steering expats to residency status.
The station speaks to another “Bitcoin billionaire” in Lagos, who says there are “at least three” more like him already living in the city, and 12 more “(mostly from the UK) moving to the Portugal in the next few months for crypto tax benefits”.
Dutchman Wout Deley “thinks crypto migration is also good for Portugal,” CNBC says.
“They have a huge brain drain. The younger ones leave. So they try to be more open to people who have capital, the digital nomads”.
Meanwhile, the Taihuttu tell the station that they want to “disrupt the typical expat experience in Portugal by building their own crypto village.
“The family is currently shopping for real estate,” the station said. “They have narrowed down their options to three different plots of land (one as large as 250,000 acres) along the country’s southern coast in the Algarve.
“The plan is to run the community in a decentralized way, in which land is divided by the square meter and sold as non-fungible tokens, or NFTs, in order to signify ownership.
“Taihuttu also wants to mine bitcoin with solar and wind power, and then use the heat produced by the rigs to heat homes in the winter, in a kind of closed-loop system.
“The plan of work, for now, is to use a Decentralized Autonomous Organization, or DAO, to govern the community. DAOs run on blockchain technology,” CNBC says.
The Taihuttu “want to build a decentralized way of life, which is the future”, they say.