'Beautiful Bitcoin Heaven' Portugal’s 0% Crypto Tax Lures In Bitcoin Family
The famous Bitcoin family who is living only off of their crypto is moving to Portugal, which welcomes them with a 0% tax on cryptoassets.
The Bitcoin Family has risen to international prominence after the Dutch family of five sold everything they owned in 2017, including their house, in order to invest in bitcoin (BTC) at a time when it was trading for around USD 900 -- and live off crypto trading.
After spending the last five years traveling around the world, parents Didi and Romaine Taihuttu, and their children Joli, Juna, and Jessa are now setting up camp in Portugal, and intend to make the country their permanent home owing to its crypto-friendly tax framework.
“You don’t pay any capital gains tax or anything else in Portugal on cryptocurrency,” Didi told CNBC, referring to the country’s 0% tax on crypto, adding:
“That’s a very beautiful bitcoin heaven”.
An analysis by the Portugal-focused law firm Edge International states that, while there is a lack of specific legislation on cryptoasset taxation in the country, a binding opinion of the Portuguese Tax and Customs Authority from 2016 states that gains resulting from the purchase and sale of crypto or its exchange for fiat currency are not taxable if they represent capital gains (type G income) or capital income (type E). They are only taxable if they are deemed to represent business or professional income (type B).
Owing to this, “tax will only be due in Portugal if the buying and selling of cryptocurrency is a regular professional activity of the investment professional on behalf of third parties,” according to the law firm.
The 43-year-old father has disclosed that the family preferred cold over hot storage for their cryptoassets and that they have hidden hardware wallets in several countries across the globe, including Europe, Asia, South America, and Australia. The crypto stashes are located at rental apartments, friends’ homes, and self-storage sites, as Didi said he preferred “to live in a decentralized world where I have the responsibility to protect my capital”.
As of last August, about 26% of the Taihuttu family’s BTC holdings were in hot, or online wallets, which Didi refers to as “risk capital” enabling day trading and bets, with the remaining 74% of the family’s cryptoassets secured in hardware wallets.
Meanwhile, Didi’s siblings are also considering moving to Portugal, with his brother and sister in the process of selling their houses to invest in bitcoin.
“We will all be traveling together as one big bitcoin family which is, of course, really cool,” he said.
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