Quick Cashout Bitcoin - Portugal vs Malta for EU Citizen

[LiquiditySplash]

Yeah he is clearly full of cow manure. Almost all his comments are misguided opinions, here-say, or outright FUD

Maria Anna Pescadinha, a Portuguese attorney was recently on Crypto tips youtube channel and she said Portugal not taxing crypto is not ending anytime soon bc there is currently no law proposed to change the status of btc to a coin of legal tender. If it's not legal tender u can't be taxed on it.

Why would something have to be legal tender to be taxed? If you buy and sell houses, cars, anything for a profit, then they will will want taxes on those profits.

From what I have read, he could be correct. Source:

Cryptocurrency Taxation in Portugal - Madeira Corporate Services

Cryptocurrency taxation in Madeira and Portugal is straightforward in terms of personal income taxes, but special attention needs to pay...

mcs.pt

“it is also the understanding of the Portuguese Tax and Customs Authority that the profits obtained from the sale of cryptocurrencies are not taxable under the Portuguese tax system, unless by their regularity ends up constituting a professional or entrepreneurial activity of the taxpayer, in which case it will be taxed as a qualifying income under the category B (freelancing) of the Personal Income Tax Code”

So it sounds like if you are trading crypto and the tax authorities decide you are doing it as a “professional or entrepreneurial activity” then you should have paid tax. Not a risk I would want to take personally, good luck arguing it’s not a professional or entrepreneurial activity if you are trading and cashing out large amounts.

Maybe he is wrong about it being 1 trade that triggers this, but unless there is a clear official guideline then it seems risky.

 

[Verbatim]

Have you found any country where it is next to impossible that you are considered commercial trader? According to my research it could happen anywhere.

 

[jonnyG]

No. As a general rule, an individual is qualified as a resident of Portugal if he is present in Portugal for more than 183 days, consecutive or otherwise, in any 12-month period. Getting into the NHR doesn't make you a resident for tax purposes.
Maltese banks are not crypto cash out friendly.

wtf wow so malta is only friendly for drug money then, jesus.
These offshores are bulls**t better stay and hold and wait for another "el salvador" in europe or pay the tax

 

[dread pirate]

Have you found any country where it is next to impossible that you are considered commercial trader? According to my research it could happen anywhere.

If you buy and sell houses and cars you are paid in legal tender ie Euro and taxed on the profits made in in Euro. My paraphrasing was accurate but English is not her first language of the attorney making these claims. Unlike much of the here say on here about crypto and the like, this is the pov from an actual person. Look her up, she is a real attorney. Look up the video, not too hard to confirm for yourself. Not sure why you are joining the FUD train, Jeez.
As for the difference between crypto traders and non traders cashing out, its pretty obvious the government wants to stop people saying they are retired or digital content makers or whatever and all the while they are trading and cashing out profits without declaring their actually business activities. But I'm not an attorney in Portugal, go and ask Maria or someone on the ground. Cheers

 

[pamboscy]

Can you please contact me regarding that? Im a cypriot and id love to know who accepts bitcoin in property

 

[williamram]

Why would something have to be legal tender to be taxed? If you buy and sell houses, cars, anything for a profit, then they will will want taxes on those profits.

From what I have read, he could be correct. Source:

Cryptocurrency Taxation in Portugal - Madeira Corporate Services

Cryptocurrency taxation in Madeira and Portugal is straightforward in terms of personal income taxes, but special attention needs to pay...

mcs.pt

“it is also the understanding of the Portuguese Tax and Customs Authority that the profits obtained from the sale of cryptocurrencies are not taxable under the Portuguese tax system, unless by their regularity ends up constituting a professional or entrepreneurial activity of the taxpayer, in which case it will be taxed as a qualifying income under the category B (freelancing) of the Personal Income Tax Code”

So it sounds like if you are trading crypto and the tax authorities decide you are doing it as a “professional or entrepreneurial activity” then you should have paid tax. Not a risk I would want to take personally, good luck arguing it’s not a professional or entrepreneurial activity if you are trading and cashing out large amounts.

Maybe he is wrong about it being 1 trade that triggers this, but unless there is a clear official guideline then it seems risky.

If you sell cryptocurrency, it's a business activity and you have to pay tax.