Yes, I'm fully aware. Would need to find a formula that can work. But I think there are several options in Portugal:
-I read from 2 different sources that you can be fully legal crypto trader and only get taxed on 15% of your winnings IF you only make up to 200k€ net per year. I'm going to quote it:
- Self-Employment Income (Category B): Income from professional trading, mining, or transaction validation is taxed as self-employment income, with progressive rates ranging from 14.5% to 53%, based on total earnings.
For businesses dealing in cryptocurrency, such as mining operations or exchanges, Portugal applies standard corporate tax︀ rates. Income from crypto-related business activities is taxed progressively, with
businesses earning up to €200,000︁ subject to a 15% tax rate
Taxpayers covered
Taxpayers whose annual gross income in Category︂ B (business and professional income) does not exceed € 200,000, and have not opted for︃ an organized accounts regime can apply for the simplified regime.
| Sale of goods and products,︄ operations with crypto assets, with the exception income deriving from crypto asset mining, as well︅ as provisions of services in the hospitality, food and beverage sector, except those related to︆ local accommodation establishments | 0.15 |
To me, "operations with crypto assets" could certainly be referred︇ to DeFi activity (trading on chain, airdrop/yield farming, arbitrages, etc.) and you would only get︈ taxed for 15% of your winnings (so about 8% total taxes assuming self employed max︉ bracket). Would need to confirm though.
-Also, in Portugal swaps from crypto to crypto are︊ not taxed, and if you hold any crypto for over a year it's taxed as︋ long term capital gains at 0% Therefore, potentially you could keep your winnings in a︌ stablecoin, hold it for a year, then cash out tax free. (not 100% on this︍ one. would need to investigate more as well).
-And anyway, the tax Portuguese authorities don't︎ understand blockchain at all. You could simply show them a proof that you bought BTC️ in Binance with EUR for example, then you show them how you sell the same amount of BTC for EUR 13 months later. What happened in between? hehe
Not saying that's what I'm planning to do, as it would probably be unnecessary crime and I think I will be able to find other legal formulas, but the Portuguese tax man is nice and a Portuguese tax consultant told me if you screw up you can simply pay your taxes lol
I think Spanish tax man is the anomaly.
