Thursday, December 8, 2022

Portugal Government Proposes 28% Tax on Crypto Capital Gains

In addition to the 2023’s national budget submitted to the parliament, the Portuguese government added a crypto gain tax proposal. The government of Portugal has suggested that a 28% tax be levied on profits from cryptocurrencies gotten within a year. This cryptocurrency tax policy will likely take off next year if it is approved alongside the 2023 State Budget.

Thereafter, capital gains gotten from the crypto assets after one year will be exempted from paying such tax. Already, 28% is the standard tax rate for capital gains in Portugal.

“Capital gains relating to crypto-assets held for a period of less than one year are subject to the rate of 28% (without prejudice to the aggregation option), with the capital gains referring to crypto assets held for more than 365 days exempt from taxation,” a section stated

Also, the government of Portugal proposed a 4% tax on the free transfer of cryptocurrencies like in the case of crypto inheritances. Stamp duty will apply on commissions charged by intermediaries involved in the cryptocurrency sector. In all of these, the Portuguese government is focused on creating a broad and adequate framework for crypto taxation.

Parliament Previously Refused Crypto Tax Proposal

The draft is still under consideration by the Parliament which has the right to finally approve such a proposal. Noteworthy, the current Portugal Minister of Finance Fernando Medina shares similar sentiments about crypto taxation. The Minister had tried to impose taxes on all digital assets traded in Portugal.

Medina stated that “Portugal is in a different situation, because, in fact, several countries already have systems. Several countries are building their models regarding this matter and we are going to build ours. I do not want to commit myself to a date at this moment, but we will adapt our legislation and our taxation.”

Earlier in May, the Parliament initially turned down two bills that proposed taxing cryptocurrencies. The bills were submitted by two parties identified as Livre and Bloco de Esquerda. Invariably, they suggested a tax threshold of €5,000, approximately $5,345.75 at the time of the suggestion. 

Before this suggestion, Portugal has been known to be a crypto haven without taxation. It is believed that crypto does not qualify to be an asset, but only a means of exchange for goods and services In turn, this has attracted many investors to the country, coupled with the promise of citizenship to large investors.

 

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

Related Articles

Stay Connected

0FansLike
0FollowersFollow
1,978FollowersFollow

Latest Articles

%d bloggers like this: