Portugal is on the road to becoming one of the friendliest environments for cryptos on the planet. It’s one of the last remaining countries in Europe where cryptos are seen as currencies in the eyes of the law. The result is that profits made from cryptocurrency trading are not taxed.
As if that wasn’t enough to put Portugal on the map of crypto enthusiasts, the country’s government has also passed a law that makes it possible to trade real estate in Bitcoin. In simple terms, buyers can purchase properties using BTC without the need of transferring it into a fiat currency.
That’s exactly what happened earlier this week – a Portuguese buyer bought an apartment in Braga for 3 BTCs.
The First Apartment Sold for Bitcoin in Portugal
A three-room apartment in Braga has been bought with Bitcoin in what was the first real estate transaction made with cryptocurrencies in the history of Portugal.
The buyer paid 3 BTC or about 110,000 Euro for the apartment without changing the cryptos into fiat currency. This became possible after Portugal’s Order of Notaries adopted a provision that sees cryptos as regular currencies.
Before the new act was adopted, buyers of real estate had to convert their crypto assets to Euros in order to be able to make a purchase.
Portugal Becoming a Bitcoin Haven
Portugal is one of the last places on Earth where the tax on crypto is 0%. In the United States, for example, cryptocurrency assets are seen as property. Therefore, any profits gained via crypto trading are taxed. In Portugal, however, Bitcoin and other digital currencies are seen as forms of payment.
In simple terms, this means that Portuguese crypto traders do not have to pay any personal income tax on cryptos. As a result, a number of crypto enthusiasts are making this country their new home, most notably the Dutch “Bitcoin Family” that’s already settled in Portugal.