Many crypto entrepreneurs who have recently emigrated will not be well received, but it looks like Portugal is on the cusp of ending its status. Crypto tax haven† Previously, taxes on cryptocurrency in the country were almost non-existent, but it seems that the Portuguese government wants to change that.
Portugal and cryptocurrency taxes
Portuguese Finance Minister Fernando Medina recently indicated that the country wants to start taxing cryptocurrencies in the short term. It is not known exactly when this will start. As Foreign Minister Antonio Mendonca Mendes indicated on Friday that there are concrete plans to start taxing cryptocurrencies, That reports the local news station Sapo†
It mainly concerns the profits made by investing or trading in cryptocurrencies, such as Bitcoin (BTC)† It seems very likely that the law introduced in 2016 that exempted cryptocurrencies from taxation is now already over.
Medina said at a working meeting in parliament that his justification for the tax came from comparing Portugal to countries that “already have systems in place”. Sapo also reports that Medina notes that it doesn’t make sense not to tax assets that generate capital gains. He said:
“There can be no lapses that result in capital gains, in respect of asset deals, which are not subject to tax.”
The end of the tax haven
The goal of the new tax regime on cryptocurrency will not be fixed to the degree of investment in it Cryptocurrency Suddenly it is no longer profitable, according to Medina. However, it will be tested as a stab in the back for a large number of crypto investors who have relocated to Portugal, in part due to the favorable tax regime.
Many of them immigrated to Portugal, which until recently offered a permanent residence visa known as the “golden visa”. This is because it provides owners with special tax breaks and a path to citizenship. The Golden Visa Program was started as a way to attract foreign investors.
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