The sunny land is welcoming more and more Bitcoiners, a closer inspection reveals a growing Bitcoin community taking advantage of the low taxes.
The ‘Bitcoin Family’
Switzerland is currently in the spotlight for being the most crypto-friendly jurisdiction in Europe. But Portugal is also starting to put itself on the map. Indeed, the republic offers more than just quality of life improvements for Bitcoin (BTC) owners, including an attractive fiscal environment and a growing community.
A 2016 law from the Portuguese tax authorities determined that because cryptocurrencies are not considered currency, they are not legal tender in Portugal and are therefore untaxed.
Besides many other Bitcoiners, the ‘Bitcoin family’ also moved to Portugal. The family consists of a Dutch family that sold all their possessions in 2016 and bet everything on the coin.
Didi Taihuttu is the father of the Bitcoin family. According to Taihuttu, the community has grown tremendously since then. He said the following:
“I know that the big Bitcoiners already live in Portugal. They are anonymous. They spend their money on houses and they spend their Bitcoins on everything.”
Acceptance by merchants is indeed on the rise: some Portuguese residents can pay their energy bills in BTC. Also, the Spanish startup BitBase is bringing more and more Bitcoin ATMs and stores to the major cities. Coinmap cites that there are already 57 merchants and retailers in the Lisbon area that accept BTC.
There are also plenty of BTC-only companies coming from Portugal. Synonym CEO John Carvalho recently moved to Portugal and Aceita Bitcoin, or “Accept Bitcoin”, a non-profit group of BTC enthusiasts, is also gaining momentum.
Tiago Vasconcelos, the Bitcoiner behind Aceita Bitcoin, was inspired by El Salvador’s Bitcoin Beach experiment. He has his sights set on making Bitcoin Lightning payments widely accepted in his home country.
Favorable environment for Bitcoiners
He said he “hopes that traders will take up the challenge and experiment with BTC as a payment option”, adding that Portugal is “very friendly” to Bitcoin. Vasconcelos explained the following:
“Portugal does not tax crypto. Now may be the best time to learn and interact with the technology.”
Taihuttu joked in his interview that there is a possibility for BTC to become legal tender in Portugal. “It’s already money in El Salvador, probably soon in Honduras. Hopefully very soon in Portugal, because I think Portugal has all the ingredients.”
While legal tender may be a bridge too far, the Portuguese Blockchain Association recently stated that the regulation of crypto assets is important. Matt Koller, co-founder of Swiss company Pocket Bitcoin, sheds light on the changing regulatory landscape.
Koller explained that Portugal’s favorable stance on Bitcoin is unlikely to change anytime soon. According to him, this is suggested by the outcome of the parliamentary elections in January 2022.
But there are more reasons why Bitcoiners are moving to Portugal:
“In addition to an advantageous legal framework, the 300 days of sun, the lovely Portuguese people and culture and the excellent cuisine certainly play a role.” According to Koller.
For Taihuttu, moving to Portugal is a no-brainer. “Portugal should become the new haven for Bitcoiners”he said.