- A Dutch family that sold everything and invested in Bitcoin back when each coin was at $900 is moving to Portugal where cryptos are subjected to 0% tax.
- The family currently stores its BTC in secret vaults which are located in four different continents for enhanced security.
“Going all-in on Bitcoin” has become a popular catchphrase among the Bitcoin maximalists. One family in the Netherlands did just that, selling all their possessions and putting everything in the cryptocurrency. This was back in 2017 when BTC was less than $1,000 and now, the family is mega-rich. In its latest move, it has chosen to settle in Portugal, a country that imposes zero taxes on crypto holdings.
The Bitcoin Family, as the family of five has come to be known, sold a 2,500-square-foot house and almost every other earthly possession and put all the money into BTC. At the time, the crypto was trading at just about $900. Since then, Bitcoin has shot up to just below $69,000, and at that price, their investment had shot up a staggering 7,560 percent.
Related: India imposes 30% tax on digital asset profits, digital Rupee expected in 2022-2023 FY
A Bitcoin tax haven
Didi Taihuttu, the head of the Bitcoin Family, revealed why he has picked Portugal, stating:
You don’t pay any capital gains tax or anything else in Portugal on cryptocurrency. As long as you don’t earn cryptocurrency for providing services in Portugal, you’re in the clear. That’s a very beautiful bitcoin heaven.
Indeed, Portugal is a tax haven for crypto owners. The European country doesn’t levy any taxes on Bitcoin, classifying it as currency. unlike others like the U.S which treat it as property for tax purposes. This zero-tax policy extends from gains made by holding crypto to trading the crypto for fiat currencies on exchanges.
Shehan Chandrasekera, the head of tax strategy at CoinTracker.io, a crypto tax software company explained:
Capital gains resulting from crypto transactions such as cashing out and crypto-to-crypto trades are not subject to personal income taxes. This makes Portugal a really attractive place for crypto users to live.
The only taxes imposed on crypto-related ventures extend to companies that offer crypto services, and even these are not levied any extra taxes just for crypto. Rather, they are subject to the same taxes that a business offering any other service would have to pay.
Taihuttu isn’t worried about this, reiterating that he’s only a hodler and doesn’t offer any services.
If you earn cryptocurrency by providing services in Portugal, you need to pay tax on those cryptocurrencies, but I don’t earn anything, at the moment, in Portugal. So for me, it’s 0% tax.
Taihuttu has never revealed just how much BTC his family owns. However, he has claimed that he has stored the crypto in four different continents, in secure storage vaults, giving the impression that it’s quite a sizable amount.
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