Portugal Prepares to Tax Crypto Gains at Rate of 28%, Draft Budget Unveils – Taxes Bitcoin News

Portugal will levy a 10% levy on the gains of short-term cryptocurrency investments. The levy would be added to the next year’s state budget. The document, which still needs the approval of Portuguese lawmakers, signals a change in the EU nation’s positive attitude towards crypto assets.

Government of Portugal Proposes New Tax for Cryptocurrency-Related Gains

In the past few years, Portugal has established itself as one of Europe’s most crypto-friendly countries, with a decision to refrain from taxing gains derived from crypto trading, unless they’re part of a business activity, playing a key role. Many crypto enthusiasts were attracted to it. However, that’s likely to change in the near future if the parliament adopts the budget the government is proposing for 2023.

Bloomberg reported that the draft includes a provision that allows authorities to tax gains from crypto holdings less than a full year at a rate 28%. Bloomberg quotes Bloomberg as quoting it. Similar proposals were rejected by Portuguese legislators earlier in the year. According to the new exemption, it should only be used for assets crypto-related that are held longer than one year.

Further, the document that was submitted Monday to the legislature revealed that the income earned from cryptocurrency mining operations and the issuance new coins will also be taxable. It is planned to introduce an additional 10% tax on the transfer of crypto currencies and a 4.4% levy for commissions charged on crypto operations by brokers.

Lisbon’s executive powers claim that the proposed tax rules are identical to other EU legislation. It suggests Germany as an example, the Union’s economic locomotive, where crypto investors are relieved from tax obligations if they hold the digital assets for more than a year. During a briefing, Secretary of State for Tax Affairs António Mendonça Mendes commented:

It’s a regime that fits into our tax system and also to what is being done in the rest of Europe.

Lisbon’s move comes as institutions in Brussels are working to introduce a comprehensive regulatory package known as the Markets in Crypto Assets (MiCA) legislation that should be implemented across the EU. Members of the European Parlament also called for uniform crypto tax rules across all EU member states last week.

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budget, Crypto and Crypto assets, crypto gains. crypto tax, Cryptocurrencies. Digital Assets. EU. european. Union. Gains. EU. lawmakers. Legislation. MiCA. Parliament, Portugal.

Are you concerned that Portugal’s tax system will change and lose its appeal as a crypto-friendly country? Please comment below to share your views.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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