Portugal Crypto Tax and Cryptocurrency Ultimate Guide
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Loading... - Angelica Oliveira
- 23 Mar 2023
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In recent years, Portugal has positioned itself as one of Europe’s most economically innovative countries. When it comes to cryptocurrency in Portugal, the situation is no different.
With blockchain technology and cryptocurrencies exploding in mainstream media, bitcoin dealers are keeping an eye on what countries offer the most advantages for cryptocurrency users. And Portugal is topping the charts. It’s no wonder the Portuguese government has pivoted toward adopting a regulatory framework concerning cryptocurrency. Blockchain technology is steadily being implemented in a number of projects in Portugal, with banks also adding some specific measures to regulate Portuguese crypto-assets.
Recent statements released by the financial authorities have clarified the official stance of cryptocurrency laws (including Portugal’s crypto tax regulations), which go a long way towards cementing Portugal’s place as one of the top countries for cryptocurrency traders and investors.
Portugal’s 2023 State Budget: Update on Crypto in Portugal
A special 28 percent rate will be applied to this type of income. With this said, a tax exemption has been proposed regarding income resulting from the disposal of crypto-active assets that are held for a period of 365 days or more. The regime imposed on capital gains from transactions with bonds, shares, and other securities, which aimed to increase the taxation of speculative capital gains held for a time period of one year or less, was extended to tax on capital gains derived from transactions with crypto assets.
Crypto is defined in the proposal for the State Budget Bill as “any digital representation of value or rights that may be stored electronically, using the distributed register or similar technology.” Operations related to issuing crypto assets, which includes mining, or the validation of crypto transactions through consensus mechanisms, are considered commercial and industrial activities and fall under the tax category Business and Professional Income. Read More…
