The Portugal's tax authority has clarified that Cryptocurrency trading and payments in Portugal are now tax-free.
Jornal de Negócios, the local Portuguese newspaper published this news on 26 Aug. 2019. According to the Portugal’s Tax Authority, both cryptocurrency trading in real currencies and remuneration or any kind of payments in cryptocurrencies are exempt from value-added tax (VAT) and there is no income tax on cryptocurrency earnings in Portugal.
People in Portugal will not have to pay any taxes for purchasing, using or selling crypto. And also mining farms will not have to pay VAT when selling cryptocurrencies.
The Portuguese Tax Authority revealed this in response to a request for more information from the local crypto mining company. The authority reportedly provided the clarification in an official ruling document. The Portuguese Tax Authority is stated:
“An exchange of cryptocurrency for ‘real’ currency constitutes an on-demand, VAT-free exercise of services.”