Didi Taihuttu, who is a member of “Bitcoin Family,” is reportedly settling down in Portugal, which is one of Europe’s crypto tax havens, according to a report by CNBC.
Settling down in Portugal is a huge deal for the family of five (originally from Netherlands), who have been traveling across the globe for the past 5 years. However, after spending time in 40 different countries, Portugal — which has a 0% tax on BTC — was quite an attractive destination.
Taihuttu notes that you don’t have to pay capital gains taxes or any other charges in the European nation (on crypto transactions). As long as you are not earning virtual currency for offering any services in the country, you’re all good to go.
Back in 2017, Taihuttu, his spouse and kids had liquidated everything they had owned, trading a 2,500-sq-ft home and all their other possessions for BTC and a life spent traveling throughout the world. This had been back when the Bitcoin price was only about $900. The flagship crypto is now trading for about $42,000 (at the time of writing) after surging to an all-time high of around $69,000 in November of last year.
Taihuttu, a 43-year-old, reveals that he safeguards the family’s crypto holdings in various vaults on 4 different continents. It appears that the family has a considerable amount of digital assets given that they fly throughout the world.
As reported by CNBC, the tax benefits/perks in Portugal are a big attraction. The country also provides a safe and really pleasant way of life. Last year, it ranked fourth on the Global Peace Index.
Taihuttu’s siblings are reportedly looking into making the move. Didi’s brother and sister have been selling their properties and investing those funds into BTC.
It’s worth noting that, unlike the United States, which considers digital currency to be property, taxing it the ways stocks or real property gets taxed, Portugal treats virtual currencies as a type of payment. That types of classification really helps out with taxes.
Shehan Chandrasekera, a CPA and head of tax strategy at crypto tax software firm CoinTracker.io, explains:
“Capital gains resulting from crypto transactions such as cashing out and crypto-to-crypto trades are not subject to personal income taxes.”
What all this means is that like fiat currencies, capital gains from purchasing or selling virtual currency don’t get taxed. Moreover, crypto-based transactions or payments, and even the exchange of BTC for fiat aren’t subject to VAT.