The Portuguese parliament recently heard a report on the national budget for 2023. This research recommends that cryptocurrency earnings be included in capital gains tax laws.
Portugal's budget draft of 2023 proposes 28% tax on short-term crypto profits
— AMBCrypto (@CryptoAmb) October 11, 2022
The plan calls for a 28% capital gains tax on profits from cryptocurrencies within a year. However, a year after the gain, there is no tax on it.
Since the nation only taxes cryptocurrency revenue derived from corporate or professional activities, individual endeavors are tax-free. The nation’s capital gains tax rate would apply to all cryptocurrency revenues, regardless of whether they come from investments, trading, or mining.
What does this bring to the table?
Additionally, the government plans to tax cryptocurrency transactions at 4% and charge stamp fees as necessary. According to Fernando Medina, the country’s finance minister, this suggestion is consistent with the overall attitude of the Portuguese administration.
According to Medina, capital gains tax regulations will soon apply to cryptocurrencies in the nation’s parliament.
This draught budget will damage Portugal’s reputation as a haven for cryptocurrency investors, and the exodus of cryptocurrency fans who moved there to take advantage of Portugal’s lax taxes is sure to occur.
Known for its crypto-friendly policies, Portugal has a reputation as a country that welcomes cryptocurrency. Throughout the years, Portugal has announced several incentives to assist merchants and miners who immigrate to the country using the Portuguese Golden Visa.
Interestingly, the Portuguese parliament rejected two pieces of legislation that would have taxed cryptocurrency. Media reports indicate that both measures were defeated in May during the vote on the 2022 budget.