Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate – Taxes Bitcoin News

Portuguese lawmakers are currently reviewing the state budget, and two proposed tax on crypto assets were rejected. These bids were submitted by minority left-wing parties while the ruling majority still has not presented its draft for regulation.

Portuguese lawmakers stop motions to tax crypto-gains

Members of the Assembly of the Republic, Portugal’s legislature, have rejected two separate proposals to tax profits from crypto investments. These proposals were made by Bloco de Esquerda and Livre leftist parties and were rejected by most of the ruling Socialist Party.

The attempts to adopt rules for the taxation of capital gains from crypto assets were made during the ongoing discussions on the country’s 2022 budget, Eco reported. Portuguese news site Eco has been closely following the debate in parliament.

Following a statement from Finance Minister Fernando Medina, which revealed that government workers are preparing a legal structure to allow taxation on crypto-related income, this development is significant. He indicated that it’s unacceptable to have tax loopholes for any capital gains, signaling Portugal is preparing to change its tax policy regarding cryptocurrencies.

Portugal was able to establish itself as a crypto-friendly nation by keeping a zero percent tax rate for profits earned from crypto investments. These gains, if they do not result from professional activity, are exempted from income tax

Livre’s proposal envisages taxing capital gains from crypto exceeding a threshold of €5,000 ($5,400). According to the eco-socialist party, Lisbon’s executive should make it mandatory to declare crypto assets in order to tax them.

Portugal’s favorable crypto tax regime and relatively affordable costs of living have turned the country into a hub for tech innovations, attracting digital nomads and bitcoin enthusiasts from around the world, including Ukrainians working in the crypto space more recently.

What’s your explanation for Portugal’s decision to change its crypto taxation policy? Leave a comment below.

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.