Portugal has remained one of the foremost choices for story crypto due to its lack of crypto-related taxation. However, that is set to change soon since the finance minister of Portugal is looking to impose a tax on crypto.
Fernando Medina, Minister of Finance of Portugal is preparing to establish a set of laws that’ll allow them to tax crypto assets. During a state budget discussion, Fernando said:
“Several countries are building their models regarding this matter and we are going to build ours. I do not want to commit myself to a date at this moment, but we will adapt our legislation and our taxation.”
This is not the first time that the government is talking about crypto taxation. In fact, the government had already asked the Portuguese Tax Authority for a study on crypto taxation. Through this, they can “propose an adequate tax framework for these new instruments, taking into account the necessary balance between the fair distribution of income and wealth and the attraction of foreign investment.”
As of now, the Portuguese government has not decided how will they impose taxes on crypto. Moreover, the finance minister had stated that they’ll set it on the principles of “justice” and “efficiency”. Through this, they’ll aim for a tax system that’ll not scare crypto investments out of the country.
Fernando has stated that they’ll aim for an “adequate” taxation system for crypto and not “an “exceptional character that ends up reducing revenue to zero.”
However, he had made up his mind that the government will tax crypto sooner than later.