Portugal has experienced significant growth in its crypto industry, attracting attention with its progressive tax laws and the relocation of web3 companies. However, according to a Portuguese news publishing house, the country’s natives have displayed a relatively cautious attitude towards digital assets, with crypto investment figures significantly lower than the global average.
Data from licensed crypto payment gateway Triple-A reveals that approximately 2.6% of Portugal’s population, or 268,000 individuals, actively invest in digital currencies. While this represents progress, it remains half the global average and pales in comparison to countries such as the United Arab Emirates, India, China, and the United States, which boast a substantial percentage of their populations as digital asset investors.
The cautious approach among the Portuguese population suggests an element of either caution or inaccessibility that needs to be addressed for investment figures to rise. Despite the encouraging factors, such as increased awareness, technological advancements, and low crypto taxes, the country still faces challenges in fostering broader adoption.
Portugal’s new tax rules for crypto assets, implemented on January 1, 2023, showcase the country’s progressive stance on crypto taxation. The rules define a crypto asset as any digital representation of value or rights that can be electronically transferred or stored through distributed ledger technology. Notably, unique and non-fungible crypto assets are excluded from this definition and are not subject to taxation.
The tax laws offer incentives for long-term crypto holders, as capital gains from the sale of crypto assets held for 365 days or more carry no tax. Additionally, receiving crypto assets in exchange for selling other crypto assets will not trigger any tax, encouraging crypto-to-crypto transactions.
While Portugal’s crypto-friendly environment has attracted foreign residents and contributed to the growth of the industry, the relatively low adoption rate among the general population raises concerns. It appears that the benefits of the progressive stance on crypto may primarily benefit the tech-savvy and educated, while the majority of the populace remains on the sidelines due to a lack of awareness and understanding of the risks and rewards associated with digital assets.
However, for Portugal to fully embrace the potential of the digital asset revolution, the benefits of the progressive tax environment and the burgeoning tech industry need to extend to the broader population. While the steady growth of Portugal’s crypto industry is promising, there is still a need for increased awareness and education to bridge the gap between the cautious approach and broader adoption.
The global crypto sector continues to witness varying levels of adoption across different countries. The United Arab Emirates leads the table with 27.67% of its population owning crypto assets, followed by countries like Vietnam, Saudi Arabia, Singapore, Iran, the United States, Ukraine, and Venezuela, each with unique dynamics driving crypto adoption.