In Portugal’s national budget for 2023, the government has proposed a new way to tax cryptocurrencies. On October 10, the government released a report that said they were going to put a 28% capital gains tax on all crypto gains.
The 450-page macroeconomic strategy and fiscal policy report says that cryptocurrency profits made in the next year will be taxed at a rate of 28% on capital gains. But the clause says that the tax does not apply to any gains made after a year of holding the cryptocurrency.
Also, the Portuguese government is talking about adding a 4% tax to all free cryptocurrency transfers, including stamp duties when they apply.
By putting these taxes in place, the country is trying to put cryptocurrency on the same level as other industries there. Since the country has a standard capital gains tax rate of 28%, the government thinks that a clear tax structure will help the cause.
Portugal already had tax rules for crypto-related business activities in the country, but now those rules will also apply to Portuguese citizens.
The Portugal parliament has not yet agreed to the numbers on the proposal, though. But the tax policy is in line with what Portugal’s Finance Minister Fernando Medina said in May 2022, when he said that cryptocurrencies would be taxed.
After getting its first crypto-banking licence in April 2022, Portugal became known as “Bitcoin Beach” in Meia Praia, a place where crypto fans from France and Italy who moved there because of high crypto taxes could meet up.
The post The Portuguese government will tax cryptocurrency gains at a rate of 28% first appeared on Coin Edition.
