Portugal intends to impose a 28 percent capital gain tax on cryptocurrency

Portugal intends to impose a 28 percent capital gain tax on cryptocurrency ...

According to a government report, the Portuguese government has proposed a fresh cryptocurrency tax strategy that would take effect in the country''s national budget for 2023. Unlike traditional investment vehicles, the proposed percentage in tax is similar to those seen in the country.

Free cryptocurrency transactions will be taxed, and a 4 percent rate would apply to commissions charged by intermediaries. The budget is still subject to discussions and approval within the Parliament in the coming weeks. Given that the party (PS) has an absolute majority, it has the authority to single-handedly see it through.

Portugal will not be one of Europe''s last countries to allow taxpayers to keep the full benefits of their crypto gains. In May 2022, Portugal''s tax office, which has deemed crypto gains as non-taxable income, warned that the tax-free days would come to an end.

Fernando Medina, Portugal''s finance minister, declared his commitment to begin taxing crypto, stating that the government would work on the regulatory framework. He also said that there shouldn''t be any "gaps" that resulted in certain gains not being taxed in the country.

By establishing a framework to "foster the crypto economy," the government said that these measures would give a sense of "safety and legal certainty."

According to Reuters, Portugal''s latest budget seeks to increase oil and gas firms, reduce taxes on low-income workers, and increase pension rates.

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Portugal anticipates a financial downturn, but hopes to reduce its budget deficit by 1.9 percent in 2022 to 0.9 percent next year.

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