Adam Morgan McCarthy
·2 min read
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.
Read the original article on Business Insider
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.
