Portugal

Portugal, an active member of the European Union, is notably receptive to cryptocurrencies. Yet, the country lacks specific legislation for the crypto market and doesn't identify cryptocurrencies as legal tender or currency. Instead, they are treated as digital or virtual commodities, comparable to gold or other precious metals.

Crypto payments in Portugal are entirely legal, albeit not compulsory for businesses or individuals. Those electing to accept or utilize cryptocurrencies for the payment of goods or services are required to comply with the same tax and regulatory framework applicable to traditional payment methods.

Portugal provides a favorable setting for crypto payments, largely owing to its clear and flexible tax environment that fosters innovation and competition. Portuguese regulators are proactive and cooperative in blockchain and cryptocurrencies development, all the while ensuring compliance with AML and KYC regulations. Furthermore, Portugal is at the forefront in molding the future of crypto payments at both the EU and global levels, supporting initiatives such as MiCA and CBDC.

In 2023, Portugal anticipates implementing several changes in the regulation of crypto payments, primarily related to taxation, anti-money laundering, and regulatory sandboxes. These proposed changes aim to bolster legal certainty and transparency for crypto users and providers and to ensure compliance with international standards and best practices. Consequently, Portugal continues to be an attractive destination for investors, entrepreneurs, and digital nomads seeking to capitalize on its advantageous tax regime and supportive government.