Bitcoin-Friendly Portugal Welcome Refugees from Crypto Sector in Ukraine

Since their country has been attacked by Russia, there are millions of Ukrainians fleeing the country to various European nations and many of them, including those part of the crypto space, have decided to move to Portugal. This has turned out to be an attractive destination, not just for because of its comparatively lower cost of living and warmer climate, but also because it boasts a crypto-friendly tax framework. Even though Portugal is at quite a distance from the conflict zone, they have still welcomed more than 13,000 refugees in the last few weeks. In fact, authorities in Lisbon have simplified the procedure for arrival of the Ukrainians.

Amongst the refugees, those who had been involved in the Ukrainian crypto space are more likely to find settling in Portugal easier, as opposed to other nations in the Old continent. Just like Ukraine’s growing crypto industry before the war, Portugal had also become one of the few member states of the EU that had become a crypto hub because of the bitcoin-friendly policies it had introduced. There is a zero-percent levy that has been imposed by Portugal on profits that are generated via private crypto investments. These gains are not subjected to income tax when they are not incurred from professional activities.

As a matter of fact, some foreign nationals are also offered the advantage of a flat 10% tax on pensions and 20% income tax. A software developer by the name of Valentin Sotovfled with two of his colleagues from Western Ukraine to Portugal. He had been working on Amber, a crypto-based metaverse game. Now, the three of them are hoping to continue working on their project from an office in Lisbon, but Sotov did add that finding permanent accommodations has been a challenge. He said that they had to have a contract of a year, a visa and tax number as well as a Portuguese guarantor.

He said that they did not know what to do for now and were reaching out to their friends. However, the 35 year old Ukrainian said that despite the problems, there were advantages of their move as well. He stated that the people had been very open and he was viewing this relocation as a major opportunity for his product as there is a significant amount of IT expertise that can be found in Portugal. Another crypto worker from Ukraine, Maria Yarotska, will have no problem in maintaining her job in Portugal.

She is employed by Near, which is a blockchain project, and is expanding its business in Portugal and also offering support to refugees. Ukraine had proven to be Eastern Europe’s leader in bitcoin adoption and had been transforming into a crypto hotspot when Russia began its attack. The government had been moving towards legalizing and regulating crypto in the country. Amidst the ongoing war, the country has been relying increasingly on crypto donations for solving its humanitarian issues and funding its defense. A law by the name of ‘On Virtual Assets’ has been signed into law in Ukraine.