Portugal Intends To Levy A 28% Tax On Cryptocurrency Profits
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28% Capital Gains Tax On Cryptocurrency Profits
The Portuguese government will levy a 28% capital gains tax on cryptocurrency profits achieved within a year, according to a brief portion of the almost 450-page macroeconomic plan and fiscal policy report. Gains achieved after owning cryptocurrency assets for a year will not be subject to this tax.
According to the plan, revenue from crypto mining and issuing would also be taxed. In May last year, Finance Minister Fernando Medina informed the legislature about the commencement of taxation on cryptocurrency.
Plans Of Charging 4% Tax
Additionally, the Portuguese government plans to charge a 4% tax and, if necessary, stamp duties on any free cryptocurrency transactions. The idea aims to provide a precise framework for cryptocurrency taxes and treat the industry equally with other businesses. The average capital gains tax in the nation is 28%.
Parliament's Stance On Crypto Tax
In May of this year, the country's finance minister declared that the government would start taxing cryptocurrencies, stating that the government would work on the legal framework but declining to provide a timeframe. According to Livre's plan, profits exceeding €5,000 would be subject to tax. Mariana Mortágua, a Bloco de Esquerda lawmaker who has been outspoken about crypto taxation, criticized the administration before the vote for failing to come up with a method to tax cryptocurrency.
