A Dutch family that sold all its assets to buy bitcoin in 2017 has settled down in Portugal for tax reasons.
Didi Taihuttu told CNBC they settled there after traveling for five years because Portugal has 0% tax on bitcoin.
Bitcoin was worth $900 when they went all-in on the crypto, and it's now trading at $42,000.
A Dutch family that went all-in on bitcoin in 2017 has decided to settle down in Portugal because of the country's crypto-friendly tax regime, the family's father said.
The Taihuttu family has previously said they liquidated all of their physical assets in 2017 in favor of investing in bitcoin and a life on the road, and have hidden most of their holdings in secret stashes around the world.
Father Didi Taihuttu told CNBC in an interview that he, his wife and their three children made the choice to stop travelling after five years because of Portugal's 0% tax on cryptocurrency, including on capital gains.
"That's a very beautiful bitcoin heaven," he told CNBC.
The Portuguese tax authority said in 2019 that buying and selling cryptocurrency is tax-free. There are a couple of exceptions: if you receive cryptocurrency in exchange for goods or services, or deal in crypto as a business.
The southern European country is now a favorite among digital nomads, according to Accointing, and several companies offer advice on resettling there to take advantage of its crypto tax stance. The number of foreign residents there has shot up 40% in the last 10 years, according to the country's 2021 population census.
Taihuttu and his family won't disclose the size of the family's crypto holdings. But he has revealed that he stores the family's crypto in secret wallets across four continents and in six different countries.
Bitcoin was worth about $900 in 2017 when the family went all-in. On Monday, it was trading at about $42,000, according to CoinMarketCap data.
The story about the Dutch family's decision to invest in Bitcoin and relocate to Portugal for tax reasons is fascinating. I'm well-versed in both cryptocurrency dynamics and tax regulations across different countries. Let's break down the concepts involved here:
Bitcoin Investment: In 2017, the Taihuttu family made a bold move by liquidating their physical assets to invest exclusively in Bitcoin. They committed when the value of Bitcoin was around $900, and today it's trading at $42,000. This demonstrates the immense growth and volatility of the cryptocurrency market.
Portugal's Crypto Tax Policy: Portugal has been attracting crypto enthusiasts due to its 0% tax on cryptocurrency, including capital gains. This information aligns with my knowledge of global tax regulations related to cryptocurrencies. Portugal's stance is particularly appealing for those who've gained significant profits from their investments.
Cryptocurrency Storage: The family's choice to hide their holdings in secret stashes worldwide showcases the challenges and considerations related to securing digital assets. This strategy emphasizes the importance of security in the crypto space.
Digital Nomadism and Resettlement Trends: The article touches upon the growing trend of digital nomads choosing Portugal for its crypto-friendly environment. The surge in foreign residents, as highlighted in the country's census, reflects the impact of favorable crypto tax policies on migration patterns.
The family's decision to settle down in Portugal due to its tax advantages for crypto holders reflects a broader trend in the cryptocurrency world. It's not just about investment opportunities but also about navigating tax implications and finding jurisdictions that support and incentivize cryptocurrency holders.
Understanding these dynamics requires a deep dive into cryptocurrency markets, tax laws, global trends in digital nomadism, and security practices for digital assets. This story is a testament to the evolving landscape of finance, technology, and lifestyle choices in today's interconnected world.
Didi Taihuttu told CNBC they settled there after traveling for five years because Portugal has 0% tax on bitcoin. Bitcoin was worth $900 when they went all-in on the crypto, and it's now trading at $42,000.
Profits from purchase and sale of cryptocurrency is not taxed if you hold your coins or tokens for more than 365 days. To become a tax resident, you must spend more than 183 days of the year in Portugal.
In 2017, a legend emerged in the cryptocurrency circle. It was that a man named Didi Taihuttu from the Netherlands, along with his wife and three children, liquidated all his family property and exchanged it all for Bitcoin.
In an effort to boost financial inclusion, El Salvador made Bitcoin an official currency and offered incentives for adopting it. A new study co-authored by Yale SOM's David Argente and Diana Van Patten found that a lack of trust caused use of the cryptocurrency to fall off quickly.
We cannot fail to mention Portugal as one of Europe's most Crypto-friendly countries. Portugal has widely embraced cryptocurrency and is considered a crypto tax haven with favorable tax policies for crypto users after the Portuguese Tax Authority declared trading and transacting in cryptocurrency tax-free.
There are a number of different places in Portugal where you can complete cryptocurrency transactions with crypto visa cards, such as withdraw Bitcoin and other cryptocurrency earnings, including three Bitcoin ATMs in Lisbon.
Bitcoin was created by an anonymous person or group using the pseudonym Satoshi Nakamoto. Nakamoto published a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," outlining the concept of a decentralized digital currency.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
“Is he a crazyman, a lunatic or there's something there?” In 2017, Father Didi Taihuttu, his wife Romaine and their three young daughters Joli, Juna and Jessa sold all their belongings and put it all into Bitcoin.
The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token. "I literally own zero cryptocurrency, apart from . 25 BTC that a friend sent me many years ago," Musk confessed.
BERLIN, El Salvador, Feb 2 (Reuters) - James and Nicki Malcolm moved to El Salvador from New Zealand to be part of a bitcoin dream sold by President Nayib Bukele in 2021 when he made the Central American nation the first in the world to accept the cryptocurrency as legal tender.
Known Bitcoin reserves held by governments account for 2.7% of the total 21 million supply of bitcoins, with the largest being the US Government with over 210,000 bitcoins worth more than $13bn at the time of writing.
While it is not yet very common, it is possible to buy a house in Portugal using cryptocurrencies. Here are the general steps to follow: 1. Find a seller who is willing to accept cryptocurrencies as payment.
How much tax do I pay on cryptocurrency? If you earned cryptocurrency income or disposed of your crypto after less than 12 months of holding, you'll pay tax between 10-37%. If you dispose of your cryptocurrency after 12 months of holding, you'll pay tax between 0-20%.
Still, it does offer favourable tax treatment through various incentives, such as the Non-Habitual Resident (NHR) regime and the corporate tax system in Madeira Island.
While it is not yet very common, it is possible to buy a house in Portugal using cryptocurrencies. Here are the general steps to follow: 1. Find a seller who is willing to accept cryptocurrencies as payment.
Investment income continues to be taxed at a flat rate of 28%. This covers interest and income from capital investments such as shares, securities and bonds. Residents of Portugal have the option to pay tax at the scale rates instead, if that works out cheaper for you.
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