Portugal a crypto tax-free nation, again – At least for now

ambcrypto.com:

A proposal to tax Bitcoin and other cryptocurrencies was rejected by Portugal’s parliament today. Left-wing parties Bloco de Esquerda and Livre advocated taxing digital assets during a Wednesday evening budget discussion, but the motion was rejected, according to online daily ECO’s live blog.

The suggestion requested that the government explore taxing cryptocurrency revenues over €5,000 ($5,340.45).

Nonetheless, the days of a tax-free crypto-Portugal may be numbered. The Socialist Party, which is now in power and controls a majority of the legislature, is yet to introduce any laws. Despite this, there is a chance that in the near future, Portugal will no longer exempt cryptocurrencies from taxation.

Portugal has long been regarded as a crypto-tax haven, with profits from individual cryptocurrency sales tax-free since 2018. In comparison with the current capital gains tax rate of 28% on financial investments, Portugal has an effective capital gains rate of 0% on crypto.

Furthermore, in the European country, trading digital assets is not considered investment income. As a result, crypto-companies and events flock to Lisbon, despite the fact that firms that accept cryptocurrency must pay income tax on their earnings.

That may be coming to an end, however. The Portuguese Minister of Finance, Fernando Medina, recently stated that cryptocurrencies will be subject to capital gains taxes in the near future. He also claimed that the government will work on the regulatory framework, although he did not specify when this would take place. He also claimed that there should be no “gaps” in the tax system that would result in some incomes not being taxed in the country.

“Many countries already have systems, many countries are building their