In Portugal, the General Budget Directorate recently published a file concerning the country’s future budgetary policy. In this document, the Portuguese government proposes a 28% tax on capital gains in cryptocurrencies, applicable from 2023 under certain conditions.
https://cryptoast.fr/portugal-gouvernement-prevoit-taxer-cryptomoines-2023/
The end of a crypto-friendly country?
For those investing in cryptocurrencies, Portugal has a reputation for having favorable taxation. Today, this country does not apply a tax on capital gains in cryptocurrenciesbut the situation may soon change.
In its new fiscal policy, the Portuguese government wants to create a tax on cryptocurrencies, but its approval by parliament will still have to be voted on before it comes into effect.
If the project is approved, the capital gains of individuals on cryptocurrencies will be taxed at 28%.
This tax will only apply to people who have held their cryptocurrency for less than a year. Moreover, we can point out the exemption of exchanges between cryptocurrencies. In other words, only exchanges of cryptocurrencies with fiat currencies will be taxed.
In Portugal, this project to tax capital gains in cryptocurrencies is not new. Fernando Medinathe country’s finance minister, spoke on the subject in May 2022:
“Several countries are building their models in this area and we are going to build ours. I do not want to commit to a date at this stage, but we are going to adapt our legislation and our taxation. »
For cryptocurrency miners, the income obtained will be considered as coming from professional activities. In this case, the Portuguese corporate income tax (IRC) will apply.
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The country wants to remain attractive to investors
The rate of 28% planned by the Minister of Finance could discourage some investors. Despite everything, people in possession of crypto-assets for more than a year can sleep peacefully: no tax will be applied if they convert these to fiat currency.
For Fernando Medina, the most difficult thing was to find an advantageous rate for the State without scaring away investors :
” [Il faut] a system that makes taxation appropriate, but does not make it an exception reducing revenue to zero, which defeats the purpose for which it exists. »
By comparison with its European neighbours, the taxation planned by the Portuguese government is moderate. In France, the duration of holding cryptocurrencies is not taken into account for taxation. The tax in force is 30% for capital gains realized by individuals.
👉 Read also – MiCa: the bad surprises that could further slow down the European crypto ecosystem
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Sources: Report of the General Directorate of Budget, ECO,
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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