Assembleia da Republica in Portugal has rejected two bills to impose a tax on cryptocurrency.
Portugal is a well-known cryptocurrency tax haven. Since 2018, trading cryptocurrencies has been exempt from tax. Trading digital assets is not treated as investment income in Portugal. This has drawn crypto startups to Lisbon and events to the city. However, businesses that accept Bitcoin must also pay income tax.
Fernando Medina (Portuguese Minister of Finance) recently announced that cryptocurrency in the country would soon be subject to capital gain taxes. The Portuguese Assembleia da Republica rejected two bills by minor political parties that would have taxed cryptocurrency assets.
Derek ‘Isaac” Kaplan, founder and CEO of DuoVerse, welcomed the news. He stated that any “unreasonable taxation,” would have been detrimental to the growth of cryptocurrency. Cointelegraph was informed by him that:
While a regulatory framework is essential, the industry must be allowed to grow. The crypto industry is still young and shouldn’t be treated at the same rate as capital gains on income equivalent. This would be unfair. This is a sign that crypto-friendly sentiment in Portugal is strong.”
According to ECO economic newspaper, the proposals were made by Bloco de Esquerda (left-wing party) and Livre (right-wing party). Both were rejected in a 2022 budget vote session on Wednesday afternoon. The government was asked to examine taxing crypto profits exceeding EUR5,000 ($5,345.75).
I have a floor that you can use to sleep on if you guys are moving to Portugal.
— Cozy the Caller (@cozypront), May 25, 2022
Crypto transactions in Portugal are exempt from capital gains tax and other taxes. The current capital gains tax rate on financial investments is 28%. During the same session, Antonio Mendes, deputy finance minister and tax minister of the country, stated that cryptocurrency taxation is a “complexity” and capital gains might not be sufficient.
Related: Portugal loses crypto tax haven status, as the state announces gains duties
According to Cointelegraph, an emigrant from Portugal who visited the country in February expressed his appreciation for the crypto adoption rate of western Iberian merchants. He also predicted that Bitcoin would one day be legal money. He may be thinking about a lot now that the government is examining how to tax digital assets.