From beaches to blockchain - Portugal is quickly becoming a crypto haven. Here is why CMC's upcoming conference chose this vibrant country as its host!
Portugal, a small country that’s big in the crypto space.
Even though it has a population of just over 10 million people, Portugal has emerged as one of the most crypto-friendly countries in Europe and the world. It regularly gets praised as a “safe haven for European crypto lovers.”
But what makes Portugal so attractive for crypto lovers? This special report explains:
- How Portugal regulates and taxes crypto
- Examples of crypto innovation and adoption in Portugal
- Challenges and opportunities for crypto in Portugal
- A special announcement you don’t want to miss
Crypto Regulation and Crypto Taxes in Portugal
Portugal has long been a haven for crypto lovers, thanks to its tax-free policy for crypto transactions.That’s because it does not tax crypto gains or sales. Portugal considers cryptocurrencies as a means of payment, not an asset. This means that if you buy or sell crypto for personal use, you don't have to pay any tax, as long as you're not doing it as a business or a profession.
However, crypto is not a free-for-all in Portugal. The country still follows the EU's rules on anti-money laundering and counter-terrorism financing. Also, if you provide services related to crypto, such as mining, trading or investing, you have to pay corporate income tax and VAT on your profits and revenues. And if you trade crypto as your main job or source of income, you also have to pay personal income tax on your gains.
In 2023, Portugal made some changes and updates to its crypto regulation framework. The country adopted the new Markets in Crypto-Assets Regulation (MiCA) proposed by the EU and a new tax framework for crypto assets based on the recommendations of the Organisation for Economic Co-operation and Development (OECD).
So what does this mean for you?
If you're a casual crypto user in Portugal, you might have to start paying taxes on your crypto profits next year. The government has proposed a 28% tax on annual crypto trading profits starting from 2024. This would apply to individuals who make more than EUR 5,000 in profits from crypto trading within a year. This proposal is part of the 2023 state budget document that is still subject to approval and amendments.
Portugal tries to balance the promotion of innovation and adoption of crypto with the prevention of illicit activities and risks. For now, the regulatory situation is still good, but stormy times seem to be ahead.
Crypto Adoption in Portugal
Crypto adoption in Portugal has come a long way for a developed nation. There are several indicators for that.
For example, the Central Bank of Portugal (Banco de Portugal) has granted licenses to several crypto service providers, including a bank, allowing them to operate legally in the country. The favorable tax regime has made Portugal an attractive destination for crypto investors who want to enjoy tax-free gains on their digital assets. This has fostered the rise of a vibrant and growing crypto community, with several initiatives and events that promote awareness and education about blockchain and digital currencies.
For instance, the island of Madeira announced its plans to become a Bitcoin hub by integrating crypto payments into its tourism sector. Also, SL Benfica, one of the major football clubs in Portugal, became the first in Europe to accept cryptocurrency as a payment method for tickets and merchandise. Portugal also offers various residency programs that appeal to crypto investors who want to relocate to the country. The number of crypto owners in Portugal is estimated to be over 240,000 thousand, 2.37% of the total population.
Thus, Portugal has turned into a haven for European Bitcoiners and other crypto enthusiasts. This has shown in the growing crypto startup scene in Portugal.
Crypto Innovation in Portugal
Portugal is not only a paradise for crypto users, but also a hotspot for crypto innovation and entrepreneurship. The country has a vibrant and diverse crypto ecosystem.
Many projects and startups in the European crypto industry operate out of Portugal. Crypto innovation in Portugal is thriving, thanks to Portugal’s educated labor force, its developed infrastructure and the local crypto community. Crypto enthusiasts organize meetups, hackathons, workshops and other initiatives to foster collaboration and learning.
One of the most notable events in the crypto space is ETH Lisbon, an annual Ethereum conference which features workshops, hackathons, art exhibitions and parties, showcasing the creativity and diversity of the Ethereum community.
Another annual event highlighting the potential of crypto art and culture is the Rare Effect. Upon its inception, it was Europe's first crypto art festival, featuring over 100 artists from 30 countries who displayed their works using non-fungible tokens (NFTs), digital tokens that represent unique and scarce digital assets.
CoinMarketCap Conference in Portugal
So what would be a more fitting place in Europe to host a web3 conference than Portugal?
This is where CMC Lisbon comes in.
CoinMarketCap will host CMC Lisbon, our upcoming web3 conference in 2024 in Lisbon. It aims to bring together the world's brightest minds in technology, art, philosophy and finance to reimagine the future of money. It will provide a platform for innovative discussions and collaborations with industry professionals, all in Europe’s vibrant crypto capital of Lisbon.
Early Bird registrations are now open, with limited tickets available. We will release more information on the CMC Lisbon conference, including keynote speakers, panel discussions and workshops shortly.
For more information on the conference, visit the CMC Lisbon website or follow @CoinMarketCap for updates.
