In 2016, a law was passed by the Portuguese tax authorities which ruled that cryptocurrencies are not to be considered as currencies as they aren’t legal tender in Portugal. Therefore, the virtual assets cannot be subject to capital gains taxes.
Since the law has been ruled, many Bitcoiners have enjoyed the tax benefits, including a family that relocated to Portugal about six years ago. When interviewed by Cointelegraph, Didi Taihuttu, father and husband of the Bitcoiner family, said, “I know the big ones (Bitcoiners) live in Portugal already. They are anonymous. They are not like me out there, but they already are here. They are spending their money on houses; they are spending their Bitcoin on everything.”
According to Cointelegraph, merchant adoption is on the rise. Many Portuguese residents can pay for their energy bills in BTC, and the Spanish startup BitBase is even introducing Bitcoin ATMs and stores to major cities. Coinmap cites that there are 57 merchants and retailers just in the Lisbon area accepting Bitcoin.
According to Matt Koller, co-founder of Swiss company Pocket Bitcoin, Portugal's favorable stance on Bitcoin capital gains is not likely to change soon as a result of its latest legislative election in January 2022.
Koller made sure to note that Portugal offers an, “...advantageous legal framework for those interested in magic internet money, 300 days of sunshine, and the lovely Portuguese people and culture,” making the country all that more attractive.