✍️ 11 October, 2022 – 10:45 👤 Editor: Jakub Motyka
- The European nation will join other major economies in adopting crypto taxes, if a new proposal passes.
- The draft, forwarded by Portugal’s Finance minister, awaits parliamentary approval.
- The latest news about crypto, in our Telegram channel.
Portugal plans to impose a 28% levy on cryptocurrencies held for less than a year. This follows a provision in the country’s 2023 budget, tabled by the finance minister, Fernando Medina. The draft got into parliament on Monday for legislation.
Portugal has exempted its citizens from non-commercial crypto tax for some time now. But that could soon change in the Southern European country.
The Tax Draft Has No Directive On Staking And Yield Farming
The nearly 450-page fiscal policy report does not explain the tax treatment for staking and yield farming income. It has, however, included a 4% tax on free crypto transfers as well as stamp duties.
Further, profits made from crypto issuance and mining would be taxable if the bill is approved. The finance minister categorically stated that the digital assets held for more than a year are not affected.
While introducing the legislative agenda in May, Medina told the parliament that crypto ought to be taxed. He cited the steps taken by other countries in the matter. If the motion sails through, Portugal will cease becoming a crypto tax haven.
Portugal joins Major Economies In Taxing Crypto
Major economies across the globe have adopted crypto taxes. Among them, Australia, the US and the UK. Canberra warned its investors in May against failing to report their crypto gains. The Oceania nation stated that the investors’ tax rate will determine the applicable capital gains levy.
On the other hand, Portugal has maintained a more friendly tax regime. The efforts are directed at incentivizing investments in the country. For instance, The Golden visa residency by investment, launched in 2012 to boost employment creation and productivity. Equally, the European nation has maintained a zero capital gain tax.
Meanwhile, cryptocurrencies are flashing red lights. BTC is down to $19,095, while ether is trading under $1,300. The altcoins are not looking better either. Cardano is leading losses with a 6% decline in the past 24 hours. It remains unclear how the Portuguese tax plan has affected the market. Nonetheless, 2022 is proving to be a challenging year for digital assets.
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ES: Jared Kirui es un escritor financiero experimentado apasionado por todo lo relacionado con la tecnología blockchain. Anteriormente, estuvo en los mercados bursátiles y forex, brindando a los administradores de activos contenido de primer nivel. Con un don para producir artículos de alta calidad, comenzó a cubrir noticias crypto en 2021. Tiene una mente abierta, comercia por diversión y disfruta de los deportes.
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