The Assembleia do Republica, the Portuguese Parliament, has rejected two bills that would have put the cryptocurrency industry under a tax. Portugal is long-standing as a tax haven for cryptocurrency, and trading in cryptocurrency has been tax-free within the country since.
Additionally, in Portugal, digital asset trading isn’t considered an investment income. Even though businesses that use Bitcoin have to pay tax on income on it, this has brought cryptocurrency startups and events to Lisbon. The Portuguese Minister of Finance, Fernando Medina, recently announced that cryptocurrency would be subject to capital gains tax soon. It is the Portuguese Assembleia da Republica, however, opposed two separate bills by minor political parties that would assess taxation on Bitcoin assets.
In the cryptocurrency market, transactions are not subject to taxes on capital gains and other types of taxes in Portugal. The current tax on capital gains rate for investments in financial assets is 28 percent. In the same session of parliament in which, the finance and tax deputy of the country, Minister Antonio Mendes, stated that taxing cryptocurrency is a “tough reality” and that the tax on capital gains might not be enough.
An emigrant from Portugal has praised the west Iberian country’s adoption of crypto at retail stores in February and even suggested that Bitcoin could one day be legally recognized as a currency in Portugal. But, with the government debating on how to assess the tax on digital currencies, this man could be occupied. The suggestions came from right-wing groups Bloco de Esquerda and Livre, both of which were defeated Wednesday in an election on the budget for 2022. The government is being requested to study the taxation of cryptocurrency gains of more than 5 euros ($5,345.75).