Portuguese Congress rejects proposals on crypto taxation, which two leftist parties submitted. The current government in the country also plans to tax crypto, but they haven’t proposed a bill till now. As for the ones that were rejected, they were presented by Livre and Bloco, which had very less representation in the Portuguese Congress. We might soon see a bill from them taxing crypto; until then, investors can enjoy the 0% tax on crypto.
Crypto taxation in Portugal
At present, while the capital gains tax on other financial investments is 28%, it is zero for crypto. So, for investors, it is a good time to book profits if any. The Minister of Finance, Fernando Medina, said that crypto would be taxed in the near future. They are still in the process of formulating a proper bill that addresses all the queries that come with taxing crypto. Fernando also said that a lot of countries have their systems in place, and many are building their models. Similarly, Portugal is making their own.
Crypto laws in Portugal and their effect
Portugal wants to bring fair taxation laws as fast as possible to ensure that they stay competitive in space. Right now, they do not consider crypto either as financial assets or foreign currencies based on a ruling that came in 2016. This is the reason it is considered a crypto paradise, as even VAT is not applicable to crypto. This has made crypto investment quite popular among the citizens of the country.
Recently, a real-estate deal also went through where a 3-bedroom home costing around $120,000 was paid for entirely in Bitcoin. Such deals are only possible when the regulations aren’t strict and allow people to experiment with new technology. However, it is essential to note that business activities that are paid with crypto are taxed.
Currently, Portugal’s tax on financial assets is really high at 28%. So, it is likely that crypto taxation will also be high once the government passes a bill.
What are your thoughts as the Portuguese Congress rejects proposals on crypto taxation by two leftist parties? And how long do you think the zero taxation system will continue? Let us know what you think in the comments below. Also, if you found our content informative, do like and share it with your friends.