According to a report issued by the Portuguese government published yesterday, Monday, the government of this country is considering implementing a new cryptocurrency tax policy that, if accepted, would be part of its 2023 national budget.
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This new policy would entail the imposition of a 28% capital gains tax that will be applicable to cryptocurrency gains made within one year. However, profits made after one year of holding crypto assets will continue to be tax-exempt as before.
This proposal represents a major policy shift for Portugal regarding crypto taxes, as until now the country only levied taxes on digital assets obtained from professional or commercial sources. If the law is approved, all Portuguese citizens who make a profit from the sale of cryptocurrencies held for less than a year will have to start paying taxes, although crypto assets held for more than a year will continue to be exempt from tax.
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In recent years, Portugal has become a very interesting destination for international residents, with cryptocurrencies being at least one of the reasons for Portugal’s demographic changes. In this country, we find the “Bitcoin Beach” in Meia Praia, an “unofficial” meeting place for cryptocurrency advocates. While the Portuguese Parliament rejected a bitcoin tax bill presented in the first months of 2022, these new political proposals will have to be closely monitored to assess how they affect Portugal’s crypto economy in the coming years.
