Portugal is a country that has delicious cuisine, sun-kissed beaches, and rustic countryside scenes. It is, however, also one of the more struggling countries in the European Union. The country has been bailed out several times by the bigger powers. In recent years, though, they have managed to stabilise their economy. In this process, Portugal has become a blockchain hub.
Portugal’s cryptocurrency regimes
One of the main reasons Portugal’s cryptocurrency market has thrived so is in large part due to its tax-friendly nature. Forbes reports that personal cryptocurrency trade is exempt from value-added, capital gains, and income taxes. It has created programmes to encourage residency whereby a potential resident must invest in real estate to a value of €50,000. Residents can enjoy the beautiful landscapes of the country while simultaneously profiting from desirable tax regimes for digital currency.
On 21 April 2020, Portugal published the “Digital Transitional Action Plan” to encourage investments and stimulate the country’s economy. This government-sanctioned plan will welcome digitalisation and internationalisation of financial programmes in the country. It aims to create “Technological Free Zones” which analysts say will beckon provisions to incentivize cryptocurrency trade and activity in the country. In an interview with Cointelegraph, Rémy André Ozcan, a co-founder of the French Blockchain Federation, said the digitalisation plan, coupled with the above-mentioned tax breaks, will make Portugal a haven for blockchain business.
The Portuguese government and cryptocurrency
Cryptocurrency is widely followed by the Portuguese government and its ancillary regulatory bodies, reports Global Legal Insights. This is very much due to a rise in tech-based companies and a sharp increase in the use of cryptocurrency over the past decade. The Banco de Portugal has not taken any steps to regulate cryptocurrency processes though, and instead has adopted a laissez-faire approach to the systems in place. Neither has the Portuguese legislature implemented any laws to regulate the use of cryptocurrency.
Interesting developments await this heaven for blockchain afficionados.