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Topic: Buying a house with 100% Bitcoin is possible in Portugal - page 2. (Read 1888 times)

legendary
Activity: 1708
Merit: 1922
The Alliance Of Bitcointalk Translators - ENG>SPA
If you are a long term holder of Bitcoin you do not pay tax!!!

I'll give an example:
Buy 1 BTC in 2020, sell in 2023 = pay no tax.
Buy 1 BTC in Jan/2023, sell in Dec/2023 = pay 28% tax on profit.
Buy 1 BTC in Jan/2023, sell in Dec/2024 = pay no tax.

That is, only the profits obtained from purchases and sales during that calendar year will be accounted for payment.
Another example:
Buy 1 BTC in 2020, and buy 1 BTC in Jan/2023. It sells in Dec/2023 2 BTC. You will only pay tax on the profit you made in 1BTC, the other was purchased more than a year ago, it will not be accounted for.

Did I explain the idea?

You have explained it perfectly well joker_josue: I think that the way you have presented the example with real figures there will be no room for doubt.

In summary, the regulation tries to charge the speculators, but leaves alone the long term investors/holders. Although I like the idea, it still poses some risks to newbies who start trading without a clear idea of what they are doing, who can get an unpleasant surprise if they don't manage their transactions properly.

As it seems, due to new regulations, this is going to stop being "just a game" soon.
legendary
Activity: 1456
Merit: 3765
**In BTC since 2013**
So basically, if you are a long-term holder, you will have to pay taxes for holding a certain amount of Bitcoin if it is in profit since you've bought it after one year is completed. It means that Portugal is taxing long-term holders and short-term traders are exempted from this rule, It's obviously great for day traders as they won't need to pay taxes but we all know that the majority of people hold their Bitcoins for pretty long periods which will make them pay taxes if they are living in Portugal.

I forgot to ask, is the tax only payable if the person sells their assets and doesn't apply if they are just holding them? And what if someone sells their Bitcoins at a loss? Say they bought in January when the price was $29k, and they sold them in December when the price was $27k. So they won't pay taxes in this scenario?

I think you misunderstood joker_josue's example. If you are a long-term holder and you hodl for more than a year, then you are not subject to pay taxes in Portugal, from what I understand. Taking into account that historically nobody was forced to pay taxes on crypto profits in the country, this is bad news for many, but I still think that this is a very reasonable policy, the same as Germany's if I'm not wrong, and the one I would like to be applied in Spain.

On the other hand, losses can be used to get a discount in your present or future taxes.

If you are a long term holder of Bitcoin you do not pay tax!!!

I'll give an example:
Buy 1 BTC in 2020, sell in 2023 = pay no tax.
Buy 1 BTC in Jan/2023, sell in Dec/2023 = pay 28% tax on profit.
Buy 1 BTC in Jan/2023, sell in Dec/2024 = pay no tax.

That is, only the profits obtained from purchases and sales during that calendar year will be accounted for payment.
Another example:
Buy 1 BTC in 2020, and buy 1 BTC in Jan/2023. It sells in Dec/2023 2 BTC. You will only pay tax on the profit you made in 1BTC, the other was purchased more than a year ago, it will not be accounted for.

Did I explain the idea?
legendary
Activity: 1708
Merit: 1922
The Alliance Of Bitcointalk Translators - ENG>SPA
I like Portugal, and the fact of their BTC acceptance for payments. One fact though is that the government is always going to find way to gain from BTC investments either as taxes or fees, where this don't happen, the government probably invested alot with their portfolio and wouldn't tell you.
From this year (2023), in Portugal, taxes on profits obtained from the sale of crypto in the last 365 days began to be paid. That is, if you buy BTC in January and sell it in December, you may have to pay taxes on that gain. But if you only sell in February of the following year, you no longer pay.

I think generally speaking, it's not a bad option. It's just a matter of the person managing their assets well.
So basically, if you are a long-term holder, you will have to pay taxes for holding a certain amount of Bitcoin if it is in profit since you've bought it after one year is completed. It means that Portugal is taxing long-term holders and short-term traders are exempted from this rule, It's obviously great for day traders as they won't need to pay taxes but we all know that the majority of people hold their Bitcoins for pretty long periods which will make them pay taxes if they are living in Portugal.

I forgot to ask, is the tax only payable if the person sells their assets and doesn't apply if they are just holding them? And what if someone sells their Bitcoins at a loss? Say they bought in January when the price was $29k, and they sold them in December when the price was $27k. So they won't pay taxes in this scenario?

I think you misunderstood joker_josue's example. If you are a long-term holder and you hodl for more than a year, then you are not subject to pay taxes in Portugal, from what I understand. Taking into account that historically nobody was forced to pay taxes on crypto profits in the country, this is bad news for many, but I still think that this is a very reasonable policy, the same as Germany's if I'm not wrong, and the one I would like to be applied in Spain.

On the other hand, losses can be used to get a discount in your present or future taxes.
full member
Activity: 1050
Merit: 140
I like Portugal, and the fact of their BTC acceptance for payments. One fact though is that the government is always going to find way to gain from BTC investments either as taxes or fees, where this don't happen, the government probably invested alot with their portfolio and wouldn't tell you.
From this year (2023), in Portugal, taxes on profits obtained from the sale of crypto in the last 365 days began to be paid. That is, if you buy BTC in January and sell it in December, you may have to pay taxes on that gain. But if you only sell in February of the following year, you no longer pay.

I think generally speaking, it's not a bad option. It's just a matter of the person managing their assets well.
So basically, if you are a long-term holder, you will have to pay taxes for holding a certain amount of Bitcoin if it is in profit since you've bought it after one year is completed. It means that Portugal is taxing long-term holders and short-term traders are exempted from this rule, It's obviously great for day traders as they won't need to pay taxes but we all know that the majority of people hold their Bitcoins for pretty long periods which will make them pay taxes if they are living in Portugal.

I forgot to ask, is the tax only payable if the person sells their assets and doesn't apply if they are just holding them? And what if someone sells their Bitcoins at a loss? Say they bought in January when the price was $29k, and they sold them in December when the price was $27k. So they won't pay taxes in this scenario?
full member
Activity: 518
Merit: 140
Smart World Global Token
At the beginning of this month (May 2022), a house was sold in Portugal, in which it was fully paid for with Bitcoin. This was made possible, thanks to a new decree of law that allows crypto exchanges for houses. The house cost 3BTC at the time and it was all done legally.

You can find out more in these news:
EN: https://finbold.com/house-in-portugal-sold-for-3-bitcoins-in-a-historic-first-ever-direct-sale/
PT: https://www.idealista.pt/news/imobiliario/habitacao/2022/05/06/52164-casa-em-braga-e-comprada-por-3-bitcoins-e-a-1a-transacao-100-cripto


But the highlight now goes to the platform created by the real estate company responsible for this sale, where it lists all the properties that can be acquired with Bitcoin.

Cryptohouses

In addition to presenting a series of properties available to buy with Bitcoin, the company still gives full legal support so that everything is done according to the law.


___
NOTE: I have no connection to this property, I'm just sharing the information. I'm from Portugal and I can give you a few more details.


I think it is very good news for all of us who are related with Bitcoin. If Bitcoin legal in Portugal there no problem but Bitcoin were illegal there are some problem. Because government or legal authorities will creat problem and that will creat negative impact on bitcoin and crypto currency market. Overall i think if bitcoin were not illegal in Portugal it will create positive impact on cryptocurrency market. And it will be milestone for Bitcoin. Because usability of bitcoin will increase and Bitcoin will more popular and credible. But i think every country will think positive for bitcoin considering it’s necessity.
full member
Activity: 392
Merit: 197
What is the cost of living like in El Salvador? How much would it cost to rent a one bedroom apartment in an upscale neighborhood there?
I think the cost of living in El Salvador is much lower, for example when compared to the US. However, I'm pretty sure that it can vary from place to place within El Salvador. For more detailed information you can refer to the Ministry of Foreign Affairs in your country as Litzki1990 suggested.

I think you can also conduct your own research on Google where you are likely to find accurate information. This website provides a lot of data about the cost of living in El Salvador. You can check it out for more information.
The cost of living in El Salvador is supposed to be several times less than the cost of living in America. But the cost of staying there depends on how you stay. That is, if you want to be a citizen of that country, it may be a little easier for you to stay, but if you plan to collect a visa from your country's embassy and live in that country, the cost of living and eating may be higher for you. However, the Embassy of El Salvador or your Ministry of Foreign Affairs may be able to assist you with more information on this matter than we can.
legendary
Activity: 1456
Merit: 3765
**In BTC since 2013**
I like Portugal, and the fact of their BTC acceptance for payments. One fact though is that the government is always going to find way to gain from BTC investments either as taxes or fees, where this don't happen, the government probably invested alot with their portfolio and wouldn't tell you.

From this year (2023), in Portugal, taxes on profits obtained from the sale of crypto in the last 365 days began to be paid. That is, if you buy BTC in January and sell it in December, you may have to pay taxes on that gain. But if you only sell in February of the following year, you no longer pay.

I think generally speaking, it's not a bad option. It's just a matter of the person managing their assets well.
sr. member
Activity: 1316
Merit: 337
A country that has grown to accept BTC as payment is one that may soon adopt it as a legal tender in some years time.
BTC has more than assisted in one way or another. El Salvador is one of the pace setters to say that BTC can work for a country.

I like Portugal, and the fact of their BTC acceptance for payments. One fact though is that the government is always going to find way to gain from BTC investments either as taxes or fees, where this don't happen, the government probably invested alot with their portfolio and wouldn't tell you.
hero member
Activity: 2590
Merit: 612
Leading Crypto Sports Betting & Casino Platform
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.
El Salvador is truly paving the way for a Bitcoin-dominated future! While it's exciting to see a country fully embracing cryptocurrency, I can't help but wonder about the potential downsides. How will they address the concerns of financial stability, price manipulation, and the impact on their citizens who might not be tech-savvy or have access to reliable internet? It's a brave new world, and El Salvador is at the forefront of it.

It's not only about a technical difficulties that the El Salvador  citizens might face in order to use bitcoin in day to day life but it is more about how they will cope with the fluctuating bitcoin prices. At one time the bitcoin price was near 60000$+ US dollars and within a year it reach to 16000$ to 17000$ US dollars .
It is really a challenge for the people of El Salvador and bear this fluctuation in bitcoin prices.
You can think that if you buy a house with BTC when bitcoin was at all time high and then if you buy a house with bitcoin was near 20000$, how much difference it is in the value of the house.

sr. member
Activity: 1078
Merit: 342
Sinbad Mixer: Mix Your BTC Quickly
What is the cost of living like in El Salvador? How much would it cost to rent a one bedroom apartment in an upscale neighborhood there?
I think the cost of living in El Salvador is much lower, for example when compared to the US. However, I'm pretty sure that it can vary from place to place within El Salvador. For more detailed information you can refer to the Ministry of Foreign Affairs in your country as Litzki1990 suggested.

I think you can also conduct your own research on Google where you are likely to find accurate information. This website provides a lot of data about the cost of living in El Salvador. You can check it out for more information.
sr. member
Activity: 1260
Merit: 267
★Bitvest.io★ Play Plinko or Invest!
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.
El Salvador is truly paving the way for a Bitcoin-dominated future! While it's exciting to see a country fully embracing cryptocurrency, I can't help but wonder about the potential downsides. How will they address the concerns of financial stability, price manipulation, and the impact on their citizens who might not be tech-savvy or have access to reliable internet? It's a brave new world, and El Salvador is at the forefront of it.

For now the potential downside we can see is the bitcoin price volatility since they can control the situation and if the price dump they will be affected since for sure the value or buying power of their owned bitcoins will decrease. Also we can add up the problem if transaction fees goes high since they will also get trouble to do transaction if there's network congestion will happen. But over all this is minimal problem and everything can be solve.

I agree with what you said, but if you are a particular bitcoin lover and you are also a long-term holder it will not be easy for you to use it as payment for a house that you will buy of course. Instead of paying in Bitcoin, you'd rather pay in cash than use Bitcoin.

Because just think if the value of the House in money you will pay in bitcoin equal to the value of money today. You can even recover the value of the house in money if you hold bitcoin little by little as the day and time pass for sure.
sr. member
Activity: 1162
Merit: 296
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.
El Salvador is truly paving the way for a Bitcoin-dominated future! While it's exciting to see a country fully embracing cryptocurrency, I can't help but wonder about the potential downsides. How will they address the concerns of financial stability, price manipulation, and the impact on their citizens who might not be tech-savvy or have access to reliable internet? It's a brave new world, and El Salvador is at the forefront of it.
You may know wrong information about this country because over 90% of people in El Salvador are literate and this Central American country is a technology dependent country. Being a technology-dependent country, the president of this country is using this opportunity, they are accepting Bitcoin as an alternative currency of their country. The President of El Salvador is introducing Bitcoin to citizens and tourists as an alternative currency and medium of exchange.

What is the cost of living like in El Salvador? How much would it cost to rent a one bedroom apartment in an upscale neighborhood there?
Food costs or house prices may vary by region. You can collect information about this from the Ministry of Foreign Affairs of the country where you live.
newbie
Activity: 10
Merit: 0
Currently countries do not have protection for buying and selling with bitcoin. We can only agree to a 2-party transaction.
But we still have to follow the proof of purchase in this country
Pay taxes in the currency there.
I am telling you about a country where you can do anything with Bitcoin. El Salvador is the first country to fully legalize Bitcoin in its own country, allowing you to make any Bitcoin transaction in that country. Not only transactions, but all the things you used to do with dollars or other currencies, you can do those things with Bitcoin in that country. That is, if you want to pay your coffee bill in Bitcoin, you can pay the coffee bill in Bitcoin. Or if your car runs out of gas, you can pay for gas in your car with bitcoins. That means you will get all the benefits of Bitcoin in El Salvador.
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.

What is the cost of living like in El Salvador? How much would it cost to rent a one bedroom apartment in an upscale neighborhood there?
hero member
Activity: 2632
Merit: 787
Jack of all trades 💯
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.
El Salvador is truly paving the way for a Bitcoin-dominated future! While it's exciting to see a country fully embracing cryptocurrency, I can't help but wonder about the potential downsides. How will they address the concerns of financial stability, price manipulation, and the impact on their citizens who might not be tech-savvy or have access to reliable internet? It's a brave new world, and El Salvador is at the forefront of it.

For now the potential downside we can see is the bitcoin price volatility since they can control the situation and if the price dump they will be affected since for sure the value or buying power of their owned bitcoins will decrease. Also we can add up the problem if transaction fees goes high since they will also get trouble to do transaction if there's network congestion will happen. But over all this is minimal problem and everything can be solve.
member
Activity: 253
Merit: 11
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.
El Salvador is truly paving the way for a Bitcoin-dominated future! While it's exciting to see a country fully embracing cryptocurrency, I can't help but wonder about the potential downsides. How will they address the concerns of financial stability, price manipulation, and the impact on their citizens who might not be tech-savvy or have access to reliable internet? It's a brave new world, and El Salvador is at the forefront of it.
member
Activity: 322
Merit: 65
★Bitvest.io★ Play Plinko or Invest!
Bitcoin is a very popular name in today's world. The use of Bitcoin is now very high and now a lot of large transactions are being done through this Bitcoin. Transactions as big as buying land and houses are now being done through Bitcoin. That's because you don't have to pay tax if you buy and sell land through Bitcoin. Unfortunately, Bitcoin is illegal in Bangladesh, so even if we want to, we can't do such big transactions like buying land or house through Bitcoin. If bitcoin is legal in our country then we would get its benefits.
sr. member
Activity: 462
Merit: 307
Bitcoin Halving Year 🎗️🎭
Currently countries do not have protection for buying and selling with bitcoin. We can only agree to a 2-party transaction.
But we still have to follow the proof of purchase in this country
Pay taxes in the currency there.
I am telling you about a country where you can do anything with Bitcoin. El Salvador is the first country to fully legalize Bitcoin in its own country, allowing you to make any Bitcoin transaction in that country. Not only transactions, but all the things you used to do with dollars or other currencies, you can do those things with Bitcoin in that country. That is, if you want to pay your coffee bill in Bitcoin, you can pay the coffee bill in Bitcoin. Or if your car runs out of gas, you can pay for gas in your car with bitcoins. That means you will get all the benefits of Bitcoin in El Salvador.
El Salvador is one of the developed countries that has officially legalized Bitcoin. Cryptocurrency is fully legal in this country and everything from buying and selling goods to asking for payment is paid in Bitcoin. The country has advanced their economy a lot by doing various transactions through Bitcoin and has become known as one of the most popular countries in the world today. El Salvador has a facility that has a free bitcoin payment system for various transactions. and has provided special facilities for tourists to transact with Bitcoin at various locations. So we can say that all the countries where Bitcoin transactions are completely legal, everything can be done using Bitcoin.
sr. member
Activity: 1162
Merit: 296
Currently countries do not have protection for buying and selling with bitcoin. We can only agree to a 2-party transaction.
But we still have to follow the proof of purchase in this country
Pay taxes in the currency there.
I am telling you about a country where you can do anything with Bitcoin. El Salvador is the first country to fully legalize Bitcoin in its own country, allowing you to make any Bitcoin transaction in that country. Not only transactions, but all the things you used to do with dollars or other currencies, you can do those things with Bitcoin in that country. That is, if you want to pay your coffee bill in Bitcoin, you can pay the coffee bill in Bitcoin. Or if your car runs out of gas, you can pay for gas in your car with bitcoins. That means you will get all the benefits of Bitcoin in El Salvador.
sr. member
Activity: 476
Merit: 231
Currently countries do not have protection for buying and selling with bitcoin. We can only agree to a 2-party transaction.
But we still have to follow the proof of purchase in this country
Pay taxes in the currency there.
I did not understand which country you are talking about. OP said here that two people in Portugal used Bitcoin as a means of transaction to buy and sell houses. That is, the amount that these two men charged for the purchase and sale of the house, they paid the amount through Bitcoin.
jr. member
Activity: 412
Merit: 3
Currently countries do not have protection for buying and selling with bitcoin. We can only agree to a 2-party transaction.
But we still have to follow the proof of purchase in this country
Pay taxes in the currency there.
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