Countries across the world are looking to incorporate crypto into their country. Moreover, some countries are looking at different ways of attracting crypto investors in order to increase crypto activity in their region. Recently, the Parliament of Portugal rejected a proposal for imposing a tax on Bitcoin and other cryptocurrencies.
During the Wednesday evening budget session, the left-wing parties Bloco de Esquerda and Livre had proposed the imposition of tax on digital assets such as Bitcoin. However, the parliament discarded the proposal.
According to ECO via its live blog, the proposal had asked the government to consider taxing crypto profits in excess of €5,000 ($5,340.45).
Portugal like some other countries such as Belarus, El Salvador, and Singapore don’t impose taxes on cryptocurrencies. Moreover, individuals haven’t had to pay tax for proceeds from cryptocurrencies since 2018.
Besides this, Portugal does not consider trading in digital assets as an investment income. This is reason why Lisbon, the capital of Portugal, is attractive to crypto start-ups and events. However, businesses still have to pay income tax for all the revenue generated from crypto.
But that is also going to end soon. Minister of Finance in Portugal, Fernando Medina announced recently that the country will impose a capital gain tax on digital assets such as Bitcoin. Moreover, following this move, Portugal’s government could impose VAT, stamp duties, or property tax on crypto. This came after the nation’s deputy minister for finance and tax affairs, Mendonça Mendes said that crypto tax is a “complex reality”.
If the capital gains tax comes into effect, users would have to pay 28% tax on crypto transactions.