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Portugal Plans to Impose 28% Tax on Crypto Gains
Starting next year, Portugal may no longer be a tax haven for crypto investors.
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.
The country also granted its first crypto banking license in April.
While the Portuguese Parliament rejected a Bitcoin tax bill earlier this year, the administration does not appear to have given up on taxing crypto.
If Monday’s draft budget is approved, it remains to be seen how the new policies will affect Portugal’s crypto economy—and if it will face an exodus, like India, as companies and investors flee to lower-tax nations.