Cryptocurrency is a popular way of making great returns when investing in the crypto exchange markets of Portugal, and around the world.
Portugal aims for No #1 in Cryptocurrency Trading
Portugal is fast becoming the number one country for anyone who might be interested in cryptocurrency exchange, such as long-term investors and retail traders. Cryptocurrency, while not considered a legal tender, can be exchanged for real currencies for profit at prices determined by the demand for cryptocurrencies. The higher the demand, the higher the profit will be. If you want to find the best cryptocurrency exchange company, you can visit Opinioesja, a Portuguese review site that provides reviews on companies that trade in cryptocurrency, as well as their products and services available.
Portugal’s tax laws benefit Cryptocurrency Trading
Portugal is the perfect location for crypto trading, as all earnings made from the sale or trading of cryptocurrencies are tax-free in the country, after a ruling in 2016 by the Portuguese Tax Authority that stated that earnings from cryptocurrency trading are only taxable if it is registered as a professional trading activity by a business or company. If you are interested in trading in cryptocurrency and would like to know more about how to get started, you might like The Bitcoin Evolution, a company that specialises in the trading and exchange of cryptocurrencies. By clicking on the link, you can read real-world reviews from customers who have used this company or its services and can assist you in making a well-informed decision.
When looking at instances when cryptocurrency trades will be taxed, we notice the rules are more focused on companies who trade crypto as their primary source of income on a professional level. The factors that determine the definition of professional activity are things like the number of trades that take place per day, week or month, as well as the number of trading platforms or exchanges, are used. The traders’ major activity, in this case, would be cryptocurrency trading, as the trader/company would gain all their profits from their trade. These earnings would be taxable.
Trading as an Individual in Portugal
As cryptocurrency trading as an individual does not meet any of the terms that would place them in the professional activity category, all profits from the sale and trading of cryptocurrency would be exempt from income taxes and vat taxes, which are quite hefty in Portugal at a rate of 23-percent. It is important to note that some banks in Portugal are happy to deal with cryptocurrencies, and as the popularity of this virtual currency grows, we will see many more banks joining the party and allowing crypto trades and investments.
Before trading in cryptocurrencies, it is important to understand the markets in which you will trade, as well as the factors that could cause fluctuations in these markets that would cause fewer profit yields on your trades. By doing research and arming yourself with as much knowledge as going into the world of trading in cryptocurrency, you will understand what the market prices should be before making a trade, resulting in the best profit rates possible.