Portugal Plans to Tax Crypto Gains at Rate of 28% – Portugal has established itself as one of Europe’s most crypto-friendly countries in recent years, with a decision not to tax earnings from crypto trading unless they are part of a corporate activity playing a crucial role. It drew a large number of crypto enthusiasts. That is expected to change in the near future if the parliament approves the government’s proposed budget for 2023.
According to Bloomberg, the proposal includes a provision that allows authorities to tax profits on crypto holdings held for less than a year at a rate of 28%. Similar plans were rejected by Portuguese lawmakers earlier this year. According to the most recent one, the exemption should only apply to crypto assets held for more than a year.
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The document, which was filed to the legislature on Monday, also states that profits from the issuance of new coins and cryptocurrency mining operations would be taxed. A 10% tax on free cryptocurrency transfers is also planned, as well as a 4% tax on broker charges on crypto transactions.
According to the executive authorities in Lisbon, the proposed tax laws correspond to legislation currently in place in other EU states. It cites Germany as an example, the Union’s economic engine, where crypto investors are exempt from taxation provided they hold the digital assets for more than a year. During a briefing, Secretary of State for Tax Affairs António Mendonça Mendes stated, “It’s a regime that fits into our tax system and also to what is being done in the rest of Europe.”
Lisbon’s move comes as institutions in Brussels attempt to adopt a comprehensive regulation package known as the Markets in Crypto Assets (MiCA) legislation across the EU. Last Monday, lawmakers of the European Parliament encouraged all member countries to establish consistent crypto tax legislation.
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