No personal income taxation of cryptocurrency gains

As Banco Santander-Portugal began restating its customers’ ability to trade cross-border on foreign cryptocurrency exchanges, more good news arrived.

Personal income taxation does not apply to cryptocurrency gains in Portugal. “A recent binding ruling from the Portuguese tax administration says that gains from the sale of cryptocurrency are not taxed in Portugal unless the individual taxpayer carries on a business or professional activity and earns said income in that context (profit). The tax administration acknowledges that this sale is not taxable as personal income, particularly as capital income or capital gains. Thus, unless the individual taxpayer carries on an active trade or business concerning cryptocurrencies, income from the sale or purchase of cryptocurrency is not subject to tax in the context of the Personal Income Tax (PIT) code, Rogerio Fernandes Ferreira, the lead tax partner at international law firm Rogerio Fernandes Ferreira & Associados pointed out.

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