Portugal Plans to Impose 28% Tax on Crypto Gains
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Loading... - Emily Wellington
- 25 Oct 2022
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The Portuguese government has proposed a new cryptocurrency tax policy that would take effect as part of its 2023 national budget, according to a government-issued report published Monday.
Within the nearly 450-page macroeconomic strategy and fiscal policy report, a small section states that the Portuguese government will impose a 28% capital gains tax on cryptocurrency gains made within one year. However, gains realized after one year of holding the crypto assets will be exempt from such a tax.
The Portuguese government also intends to impose a 4% tax on any free crypto transfers and will also apply stamp duties where applicable.
The proposal intends to treat crypto as equal to other industries and to establish a clear framework for crypto taxation. 28% is the standard capital gains tax rate in the country.
While the draft budget numbers have not yet been approved by the Portuguese parliament, the proposal aligns with what the nation’s Minister of Finance Fernando Medina declared back in May: that crypto would soon be subject to the country’s capital gains tax laws.
Over the past decade, Portugal has become an appealing destination for international residents, who have flocked to the country due to its more flexible visa and immigration options and overall affordability. Portugal saw a massive 40% increase in immigration from 2011 to 2021, according to data from the European Commission. As of 2021, 5.4% of its total population of roughly 10 million are non-citizens. Read More…
