Portugal Prepares to Tax Crypto Gains at Rate of 28%, Draft Budget Unveils

Portugal Prepares to Tax Crypto Gains at Rate of 28%, Draft Budget Unveils

Authorities in Portugal intend to impose a levy on gains from short-term crypto investments with the state budget for next year. 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. It attracted many crypto enthusiasts. However, that’s likely to change in the near future if the parliament adopts the budget the government is proposing for 2023.

The draft features a provision allowing authorities to tax gains on crypto holdings held for less than a year at a rate of 28%, Bloomberg reported quoting the document. Portuguese lawmakers rejected similar proposals earlier this year. Under the latest one, the exemption should remain in place only for crypto assets held for more than a year.

The document submitted to the legislature on Monday further reveals that income from the issuance of new coins and cryptocurrency mining operations will be considered taxable, too. The plan is to also introduce a 10% tax on the free transfer of cryptocurrencies and a 4% levy on commissions charged by brokers on crypto operations.

The executive power in Lisbon says that the proposed tax rules correspond to legislation already adopted in other EU jurisdictions. 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. Last week, members of the European Parliament also urged for the adoption uniform crypto tax rules in all member states. Tags in this story budget, Crypto, crypto assets, crypto gains, Crypto tax, Cryptocurrencies, Cryptocurrency, Digital Assets, EU, european, European Union, Gains, Government, lawmakers, Legislation, MiCA, parliament, Portugal, Portuguese, Regulation, Tax, Taxation

Do you see Portugal losing its attractiveness as a crypto-friendly destination if the proposed change in its tax regime is adopted? Share your thoughts on the subject in the comments section below. Lubomir Tassev

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. European Lawmakers Urge for Crypto Taxation, Use of Blockchain to Fight Evasion TAXES | 5 days ago US Court Authorizes IRS to Issue Summons for Crypto Investors" Records TAXES | Sep 25, 2022

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleReport: The Oldest Bank in America, BNY Mellon Can Now Custody Bitcoin and Ethereum Next articleBitcoin Miner Cleanspark Completes Sandersville Facility Acquisition, Firm’s Hashrate Now 4.7 Exahash Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Iran to Increase Penalties for Unauthorized Cryptocurrency Mining