Portugal is attractive due to favorable global tax regime
The president of the Blockchain and Cryptocurrency Association exaggerates the idea that Portugal attracts foreigners rather than cryptocurrencies, arguing that what attracts is a global tax regime favorable to conditions such as the weather.
“It’s a question that is a little illusory. Not like cryptocurrencies, it’s a tax law. Any non-Portuguese citizen who comes to live in Portugal has a big bonus in terms of taxes, the country is for gastronomy, tourism, climate, cryptocurrencies come in the package. [pelas mais-valias] in cryptocurrencies because there is no law, but even in other types of wealth generation [os estrangeiros] pay little”, said the president of the Portuguese Blockchain and Cryptocurrency Association, Fred Antunes, to Lusa.
The official added that as fewer cryptocurrencies people generally do not settle them (i.e. do not convert into sovereign fiat currency such as euros), so there are no capital gains (or capital gains) people and also because they know that at any time the law can change.
“Portu is several friends and companies that have to do with technology here, but they don’t have the country’s conditions as an added value, the conditions are the conditions of the country, the exposure that the ‘web Summit’ . It’s not because of the most gains in Bitcoin. The gains are more news sensationalism than reality”, he stressed.
Fred Antune considered that a Union many of the factors that make the difference is how companies operating in the crypto sector can obtain from the Bank of Portugal, hence they can live here than in other countries that, therefore, had better climate conditions.
Fred Antunes said that he has known the so-called ‘Bitcoin family’ for three years, since he has been in Portugal, and his idea of creating a village of cryptocurrency investors, and considers that the reasons for the change are, above all, because the Algarve is more pleasant for live from where cryptocurrencies are of origin, and for all the lower taxation in general terms, not necessarily for the non-cryptocurrencies of origin of cryptocurrency capital gains.
For the president of Blockchain Portugal and the president of Blockchain, they created and created the identity of Portugal and that it is also worthwhile to create a cryptocurrency and create as more “points conditions for the creation of cryptocurrencies and the creation of having as more “points conditions of creation and creation cryptocurrencies to have as most considered “points of conditions of creation and creation of cryptocurrencies to have as most considered “points of conditions of creation and creation of cryptocurrencies to have as more value conditions that continue to understand much more for the Portuguese”, even considering that the relationship between this sector and the Tax Authority is difficult, which – he adds – is wrong with this new reality.
The Portuguese Blockchain and Cryptocurrency Association has 800 members, he said, mostly individuals, but also some companies.
Fred Antunes is also the executive president of ReafFevr, a company based in Lisbon that virtual vendettas with videos of the best football moments (as if they were the traditional football stickers, but instead of the faces of players they sell moments, like Ronaldo’s goal in front of Mireirense.
The ‘chromos’ packages are purchased in cryptocurrencies and cost between 10 to 15 dollars for the basic packages and from 100 to 150 dollars for the packages that have the rarest ones. Then, as with the traditional stickers, the holders of these videos can sell them among themselves and many more attorneys already sold for thousands of dollars, he told Lusa.
The Lisbon company, where 50 people work, is 50% owned by employees and another 50% are Portuguese and international funds.
Currently, he said, the company has 111,000 users connected to its platform and expects to have ended 2021 with a turnover of around 10 million dollars (about 8.8 million euros at the current exchange rate).
Still in the conversation with Lusa, Fred Antunes stake money on an idea that guns are fundamental in laundering, human trafficking and finance because — he said — all transactions are recorded on the network and are public and whoever does this kind of business doesn’t want to leave records.
Fiscalists: Portugal must develop to consolidate ‘friendly’ environment
The fictitious understanding of today’s change and must continue to exist today’s cryptocurrencies, in accordance with existing tax changes, must continue to defend data without change, Portugal even to consolidate the existing encryption environment.
In general, income generated virtually by or exchange of currency, obtained by individuals and outside of a business or professional activity, is not taxed in the IRS since there is no imposition of an objective incidence rule that allows taxing them.
In response to Lusa, official source of the Ministry of Finance, based on the understanding of the Tax and Customs Authority (AT), that when the sale of cryptocurrencies constitutes a business or professional activity of the taxpayer, there is taxation to the Federal Revenue in the category B.
“Category Headquarters in value, however, the sale of cryptocurrencies are not currently braver, the sale of Category cryptocurrencies are worth more in operations, since the most courageous cryptocurrency alternatives can be executed, since the alternatives are no longer valiant, since the alternatives are a moment of more valiant simulation. or currency accepted as a legal means of payment”.
At the level of VAT, referring to the official source of the Ministry of Finance, the sale of cryptocurrencies “benefits from the same tax exemption applicable to the sale of foreign exchange, pursuant to the CJEU Judgment to that effect (Judgment David Hedqvist of October 22, 2015 – C 264/14)”.
For other tax law experts at Abreu Advogado, Portugal to many investors in cryptocurrencies and other sustainable assets by law, Portugal to many investors in cryptocurrencies and other sustainable assets, Portugal to many investors in cryptocurrencies and other sustainable assets, even if they consider that “this situation of lack of regularization cannot be maintained for much longer”.
In this, the legislator “has the opportunity” to position Portugal ahead of other countries, “taking advantage and consolidating the ‘crypto-friendly’ environment that already exists today, also from initiatives such as the Web Summit and the creation of several ‘ tech hubs’ across the country”.
“It is important that legislators are aware of a regime that is important to be a Lusifier of cryptocurrencies and other digital assets that may affect other jurisdictions, with the consequent reversal of the investment made in digital in Portugal”, they said, noting that the technology of the underlying blockchain [às criptomoedas] goes far beyond the numerous practical applications.
Susana Estêvão Gonçalves, associated with the coordinator of Tax Law at CMS Rui Pena & Arnaut, states, for her part, that “in terms of its RS side, there is a principle of typicality, under which only the specific tax facts foreseen are taxed (typified) in the IRS Code”.
Thus, contrary to what Codes are produced as an example of the sale of securities foreseen in the list, as an example of the sale of securities foreseen in the list, “the results of the sale of values of higher valuations foreseen in the RS, “the results of the sale of or exchange of values provided for in the RS. Cryptocurrencies do not fit either this cast (category G) or the definition of equity outcomes (category E)”.
The jurist emphasizes that this lack of taxation, “does not result from these active tax officers in this sense, and that it is not only possible but expected that, soon, income will be taxed”.
Luís Leon, co-founder of the consultancy ILYA, draws attention to challenges other than the new reality that have not yet been resolved. Although trading can be considered an activity — through which income is obtained with virtual currencies – it cannot be considered as clients and earned through the network (which is not a legal entity).