Friday, October 7, 2022

Portugal Now Has a Change of Heart Towards Cryptocurrency Taxation

The days of tax-free cryptocurrency are likely to be over as the Ministry of Finance chooses to impose a tax on all digital assets traded in Portugal. The news was corroborated by Fernando Medina who is the present Portuguese Minister of Finance, after a parliamentary meeting on Friday.

Crypto engagement in Europe has constantly evolved steadily, Portugal has placed itself among the few countries that are highly supportive of virtual digital assets. The crypto market in Portugal has seen the inflow of major investors into the ecosystem, partly owing to the citizenship promised to key foreign economy investors.

Furthermore, the absence of taxation on crypto trade and investment has pulled investors into the Portuguese market creating a haven for them. The country analyzes cryptocurrency more as a means of payment for goods and services than as an asset 

While favorable to the investors, it has been gathered that this crypto haven is largely a product of the indecisiveness of the government to enact a crypto tax rule. It seems like the government is finally taking a stance in this matter, as henceforth, all purchases, transfers, and sales of crypto will attract an undisclosed tax percentage.

Crypto Upgrade Challenge Accepted by Portugal

Studies have uncovered a crypto terrain that every other country has been trailing, and this is also a driving force for the decision of Portugal’s government. According to Medina, Portugal is willing to assemble its own active crypto regulation system which will involve taxation on digital currencies. 

Besides Portugal, countries like Australia recently issued tax guidelines for their crypto exchanges, commanding that all funds realized from the sales of digital assets including non-fungible tokens (NFTs) should be entered into the tax books.

The Venezuelan government also imposed a 20% tax on all crypto trade in a bid to regulate digital assets and secure the growth of its economy by raising the value of its currency.

Frank Schäffler, who is a German Member of Parliament (MP) announced that the former crypto tax rule in the country has been abolished. The average German would now be able to put his cryptocurrencies up for sale at a tax-free value after a one-year staking or lending period. 

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

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