According to local media reports, Portuguese Finance Minister Fernando Medina cryptocurrencies He said it would soon be taxable.
“Like Other Countries, We Will Create Our Own Model for Taxation of Cryptocurrencies”
In his statement on the subject, Medina explained the tax decision as follows:
“Many countries already have their own systems and many are building their models around it. We will also create our own model.”
Susana Duarte, head of the Abreu Advogados law firm in Lisbon, said in a statement that “the Portuguese government will make progress on taxation of cryptocurrencies.
Duarte explained that the capital gains tax will also be included in the new policy, but it is not yet clear how staking and yield farming areas will be affected.
Until recently, Portugal was a tax haven for crypto investors, especially thanks to its zero capital gains tax.
“No Taxes on Crypto Assets Due to Legal Vacancy in Portugal”
Duarte said the following about the new arrangement:
“There was no tax on crypto assets in Portugal, as a result of the lack of a specific law and the lack of regulation. Prior to the new regulation, only crypto-related companies were taxable.”
Duarte said local customers are worried about the development, and both individual and corporate investors are demanding clarity and certainty about the government’s latest proposal.
In Portugal, a tax rate of 28% is currently applied to financial investments.
With the change in Portugal’s decision on taxation of crypto assets, the country joins other countries that apply similar rules.
Australia also recently announced that investors are required to annually report capital gains and losses for crypto assets.
*Not investment advice.