Portuguese Government To Impose 28% Tax On Crypto Gains

• Portugal’s government proposes a new crypto tax policy in its 2023 national budget.
• The government is planning to inflict a 28% capital tax on all crypto gains.
• Portugal also intends to introduce a 4% tax on free crypto transfers.

The Portuguese government has proposed a new crypto tax policy in the country’s national budget for 2023. The government published a report on October 10, announcing plans to impose a 28% capital tax across all crypto gains.

According to the 450-page macroeconomic strategy and fiscal policy report, a 28% capital gains tax will be levied on cryptocurrency profits made within one year. However, the clause mentions that any gains made post one year of holding the crypto asset are not liable for the tax.

Moreover, the Portuguese government is currently in talks about another 4% tax that will be imposed on any free crypto transfer including stamp duties whenever applicable.

The introduction of these taxes in the country is an effort to position cryptocurrency as equal to other industries in Portugal. Since a 28% capital gains tax rate is standard in the country, the government believes a transparent taxation frame structure will help the cause.

Portugal already had tax policies in place for business-centered crypto-related activities in the country, however, now the tax laws will be extended to Portuguese citizens as well.

Nevertheless, the numbers on the proposal are yet to be approved by the Portugal parliament. However, the tax policy is in line with Portugal’s Finance Minister Fernando Medina’s proclamation in May 2022, subjecting crypto to tax laws.

After enabling its first crypto-banking license in April 2022, Portugal is famously called the “Bitcoin Beach” by the crypto community in Meia Praia, an informal gathering spot for crypto fans relocating from Italy and France due to high crypto taxes.