Portugal’s Days As A Crypto Tax Haven May Be Numbered.
According to Portuguese news outlet ECO, Minister of Finance Fernando Medina said on Friday before a full sitting of Portugal’s parliament that crypto assets will soon be subject to capital gains taxes.
The announcement marks a significant shift in Portugal’s approach toward cryptocurrencies: since 2018, the country has treated cryptocurrency trading as a money exchange rather than an investment, exempting crypto from the country’s current capital gains tax of 28%.
Portugal has developed a reputation as one of the most desirable crypto tax havens in the world, because to its 0% effective tax rate. Lisbon, the capital, has become a global crypto centre in part as a result of this.
On Friday, Portuguese officials did not characterize this significant shift in the country’s approach toward cryptocurrency as a departure from any previously pro-business stance. Instead, lawmakers said that Portugal has always intended to regulate cryptocurrency and that they have been closely monitoring how other nations have altered their legislation to inform their own policy decisions.
Medina told parliament Friday:
“It is an area in which there is a lot more knowledge and a lot more progress, so that Portugal can drink from international experiences,”
Many countries are already classifying cryptocurrency revenues as capital gains. Consumers who have neglected to disclose taxable revenues from the sale of cryptocurrencies and NFTs received a warning from Australia’s tax department this morning.
Portugal may also propose new crypto-related levies in the near future. During the same session of parliament, António Mendonça Mendes, the country’s deputy minister of finance and tax affairs, stated that “cryptocurrencies are a much more complex reality than capital gains taxation.” He went on to say that cryptocurrency may soon be subject to VAT, stamp charges, or even property taxes.
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