Quality of life, bitcoin-friendly tax laws and a huge influx of expats have made Lisbon one of the crypto capitals of the world.
It also helps that there are clear ground rules on crypto in Europe, thanks to a law known as Markets in Crypto-Assets, or MiCA. While the guidelines aren't Portugal-specific, the comprehensive regulatory framework for digital assets makes it easier to navigate operating a crypto business or investing in virtual tokens in the eurozone.
Chan, who has a side hustle hosting his own educational podcast on bitcoin called Orange Pill Uncensored, says Portugal is a far more hospitable backdrop than the U.S. with its regulation-by-enforcement tactics deployed by the Securities and Exchange Commission. "Ever since the FTX collapse and the current ongoing attacks by especially the U.S. government on centralized exchanges, there have been efforts from the grassroots level to create more decentralized platforms that deal with the on- and off-ramps to fiat," added Chan, pointing to decentralized marketplaces like Pocket Bitcoin, RoboSats, Bisque and Peach that allow users to buy and sell bitcoin. Primiterra used to spend his days working to measure global internet censorship as part of his work with a sub-project of the dark web browser, Tor. But nowadays, he volunteers his coding skills to Bitcoin Map, an open-source tool that lets you search for merchants that accept bitcoin anywhere in the world. Lisbon may be crypto-friendly, but businesses don't appear to be all that interested in accepting bitcoin as a form of currency. Primiterra says the list includes a handful of merchants including a ramen place and a dentist.Seb True is a full-stack engineer who made the move to Lisbon over the summer. The British national initially traveled to Portugal on what was meant to be a short trip to make a presentation at the monthly bitcoin gathering. Soon after his arrival, he was hooked and committed to a three-month sublet. True quit his full-time job so he could focus on traveling the world and teaching people about bitcoin from the perspective of sound money and the philosophy of libertarianism. He has dubbed his educational modules The Bitcoin Student, and he's looking to expand the brand by capitalizing on his engineering background. Lisbon has been a relief for True, who previously ran underground workshops in Egypt where bitcoin is illegal.throw people in jail for talking about it and just working on it or doing anything with it," he said."That's actually the first place I started giving presentations on bitcoin." He says he knew the risks but ultimately ignored warnings about his safety, because he felt the population could greatly benefit from learning more about decentralized virtual money that existed outside the reach of governments or central banks. "It's a country that has experienced over 50% inflation just this year, people are suffering, they don't understand why and they don't know who to blame," continued True. "Their view was, 'Oh, bitcoin, someone controls that, too, surely, so it's not going to be any better,'" he said, adding that it didn't take long to"orange pill" them, a phrase used by bitcoiners to describe the process of indoctrinating someone in the ways of bitcoin. True has now shifted his focus to Portugal, describing Lisbon, in particular, as the ideal base to grow his enterprise. "The people here that I'm meeting are doing things, actually creating content, they're active about making a difference, and they are interested in collaborating," True told CNBC. "I've already had people contacting me asking to make content for me or for my project, not for any money, not for any fame ... but just because they're passionate, because they believe in the mission," continued True."They believe in the idea, and that's really what's made me think, 'Wow, I should really stay here. This is where the community clearly is.'"Before making the move from Asia to Europe, Chan pored over tax law in the European Union, narrowing down the ideal jurisdiction to either Switzerland or Portugal. "If you know anything about Switzerland, it's a millionaires' and billionaires' paradise," said Chan."Looking at me, I don't think I've achieved that level of success yet, so I chose the poor man's Switzerland."The resident-non-habitual status is a fiscal regime that in some cases grants expats living in Portugal total exemption from paying taxes on their income for a period of up to 10 years., taxing it in a manner similar to stocks or real property, Portugal views cryptocurrencies as a form of payment. That distinction is a game-changer with respect to taxes. Up until the end of 2022, capital gains resulting from crypto transactions, such as cashing out and crypto-to-crypto trades, were not subject to personal income taxes. The government has since added more caveats to its crypto tax breaks, including a requirement that an investor hold a digital asset for more than a year before selling in order to avoid paying taxes on the sale. This means that gains from buying or selling cryptocurrency, as with other fiat currencies, are not taxed if the trader holds on to their coins for at least 12 months. Meanwhile, profits made on crypto held for less than a year is taxed at a rate of 28%. "This makes Portugal a really attractive place for crypto users to live," explained Shehan Chandrasekera, a CPA and head of tax strategy at crypto tax software company CoinTracker.io. The only exception to the country's generous crypto scheme relates to companies registered in Portugal that deal in crypto. These businesses face some taxes under certain circumstances, like if they earn cryptocurrency by providing services in Portugal.Cyclists photographed in Lisbon, Portugal, in October 2018. Expats tell CNBC the process of establishing residency is relatively smooth. It doesn't require owning any property, and unlike otherCitizens of the European Union
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