Bitcoin paradise in Portugal changes its mind, wants to tax cryptocurrencies

Portugal’s 2023 budget proposal “spins the wheel,” with a proposed 28% income tax on cryptocurrencies held for less than a year.

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The Portuguese government has proposed a 28% income tax rate on cryptocurrencies in the draft 2023 budget, which was just published last night (October 10).

 

Accordingly, the tax will only "touch" cryptocurrencies owned for less than a year, crypto profits from longer than this period will be exempted. Free trades will also be taxed, and a 4% rate will apply to commissions charged by intermediaries. 

The government says that the aggressive tax measures will provide a sense of “safety and legal certainty”, creating a framework to “promote the crypto economy”.

Not only famous for the sport of kings, Portugal is also considered a "Bitcoin Paradise", a crypto-friendly destination for the whole European region when it seems to not be subject to any tax regulations from 2018.

Currently, Portugal does not list cryptocurrencies as an asset, but considers them as a currency, meaning that businesses providing crypto services will still fulfill their tax obligations, but individuals investing do not. are not.

The above "breathable" days are about to end? Turning back history, Portugal once hesitated and changed its mind at the last minute about whether to tax crypto or not. On May 13, Portuguese Finance Minister Fernando Medina announced that he was considering introducing a tax bracket imposed on crypto assets in the country. A week later, the National Assembly again proposed to reject it, continuing to put crypto in the "gray zone". But it will take a few more weeks to get an exact answer for today's proposal.

FoxCryptoNews summary

Oct 11, 2022

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