\n \n \n “. concat(self. i18n. t(‘search. voice. recognition_retry’), “\n
” s ” ” t. config. saAria. shownText “
“e. config. saAria. closedText”
The Portuguese government has proposed a new tax policy on cryptocurrencies that would come into effect as a component of its national budget by 2023, according to a government report on Monday.
In the nearly 450-page fiscal policy and macroeconomic strategy report, a small segment claims that the Portuguese government will impose a capital gains tax of 28% on cryptocurrency profits earned within a year. However, profits made after one year of having the cryptocurrency goods will be exempt from such tax.
The Portuguese government also intends to impose a 4% tax on all loose cryptocurrency transfers and will also stamp off tasks where appropriate.
The proposal aims to treat cryptocurrencies on an equal footing with other industries and identify a transparent framework for taxing cryptocurrencies. 28% is the capital gains tax rate in the country.
Portugal’s status as a crypto tax haven seems to be coming to an end
Although the draft budget figures have yet to be approved by the Portuguese parliament, the proposal aligns with what the country’s finance minister, Fernando Medina, said in May: that cryptocurrencies would soon be an issue for the country’s capital gains tax laws.
Over the past decade, Portugal has a hot destination for foreign residents, who have flocked to the country due to its more flexible visas and immigration and affordability features. As of 2021, 5. 4% of its total population of around 10 million are non-citizens.
Cryptocurrency is at least one of the reasons for Portugal’s demographic conversion. The country is home to what some call “Bitcoin Beach” in Meia Praia, an unofficial fundraising position for cryptocurrency fans who have moved into cryptocurrency taxes in Italy and France.
Germany to tax Bitcoin, Ethereum sold after one year of ownership
The country granted its first crypto banking license in April.
While the Portuguese Parliament rejected a Bitcoin tax bill earlier this year, the administration appears to have given up on taxing cryptocurrencies.
If Monday’s draft budget passes, it remains to be seen how the new policies will affect Portugal’s crypto economy and whether it will face an exodus, like India, as corporations and investors flee to low-tax countries.