Portugal to impose 28% tax on all crypto gains
The tax authority in Portugal, which has treated cryptocurrency profits as non-taxable income since 2018 cautioned that the tax-free period was about to expire.
The trading of cryptocurrencies has been tax-free in Portugal since 2018, and the country has long been recognised as a bitcoin tax haven. According to a government-issued paper released on Monday, the Portuguese government has suggested a new cryptocurrency tax policy that would go into effect as part of its 2023 national budget.
Individual nationals were exempt from the country’s existing capital gains tax on bitcoin holdings made from professional or business activity.
According to the plan presented to parliament on Monday, a clause in the nation’s projected 2023 budget would tax gains on crypto holdings held for less than a year at a rate of 28%. Additionally, the draught proposal from the Portuguese government proposes taxation mining, staking, and ICO gains at a rate of 28% as ordinary income.
Portugal will stop being one of the last nations in Europe to allow taxpayers to keep the whole proceeds of their cryptocurrency earnings if the budget is approved as is.
The tax authority in Portugal, which has treated cryptocurrency profits as non-taxable income since 2018 cautioned that the tax-free period was about to expire. According to the budget, data retrieved from Trading Economics the nation’s estimated debt-to-GDP ratio is expected to reach 122% by the end of the year.
According to reports, Portugal’s Finance Minister, Fernando Medina, informed the legislature in May of last year that taxes would soon be levied on cryptocurrency. Before becoming legislation, the draught proposal must now go through the entire legislative procedure. The bill’s draught hasn’t been adopted by parliament yet, so it might theoretically possibly alter. However, it is difficult to think that the Portuguese government’s move may provoke vetoes considering that it just aligns local legislation with those of other European nations.
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