Portugal is seeking a 28% tax on cryptocurrency

Portugal is seeking a 28% tax on cryptocurrency

On Monday, Finance Minister Fernando Medina released a draft on taxing individual cryptocurrency gains in Portugal. The bill was introduced as part of Portugal’s 2023 budget plan.

While cryptocurrency gains from professional and business activities are taxed as capital gains in Portugal, the government could now impose a 28 percent tax on cryptocurrency gains realized within the past year by professional investors. These gains are not taxed if the cryptocurrency is held for one year or longer.

The draft seeks to tax commissions and transaction transactions in cryptocurrencies in addition to their tax. Meanwhile, the Portuguese draft is subject to the approval of parliament and will only become law if approved. It comes about six months after the Finance Minister announced the intention to subject cryptocurrencies to taxation.

Many countries already have systems, many countries are building their models in relation to this subject, and we will build our own

Medina said.

Portugal is considered a crypto-friendly jurisdiction and also a tax haven for some investors, particularly in Italy and France. Specifically, there has been a notable spike in interest in cryptocurrencies in Portugal as a result of its favorable tax policy.

Yahya Imran is a crypto trader and blockchain content creator. He was a Campus Ambassador for FTX Africa and worked as a video content creator in the content Department of FTX Africa. He is a professional Video Editor and Video animator. He is the founder of Coinsplug.

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