One of the most crypto-friendly European countries, Portugal, announced that they would begin taxing cryptocurrencies. The golden days of tax-free benefits are over for the crypto investors in Portugal.
The announcement was made by the Finance minister of Portugal, Fernando Medina. He announced it during a May 13 parliamentary session. Portugal was considered a crypto haven for many investors. Some crypto investors went to the extent of migrating to take advantage of the citizenship. The claim will soon prove to be short-lived.
The news was initially let out by a Portuguese news platform called the ECO, which wrote that the government had plans to bring regulation for crypto and digital assets.
Portugal is not tax-free no more
Crypto was not taxed initially as it was considered a currency rather than an asset. The new regulations were framed by studying countries that undertook a similar approach to regulating cryptocurrencies. The proposed tax rules will also tax gains on the selling of bitcoin.
“Several countries already have systems. Several countries are building their models regarding this matter and we are going to build ours.”
Medina
Even though cryptocurrency, in general, is not taxed, the businesses that provide services related to cryptocurrency are taxed. Maybe the lack of proper legislation gave it a title as the “bitcoin haven.”
The government is yet to reveal the full details of the regulation. The specific date of the implementation is not yet revealed.
“With its crypto-friendly position, Portugal offers a terrific example for other European countries. It encourages overseas entrepreneurs and investors by allowing them to earn cryptocurrencies without paying taxes on them.”
Getgoldenvisa website
Crypto enthusiasts have been rallying to get a Golden visa in the Portuguese economy. The visa will cost €280,000, fast-tracking the citizenship within six years. The government announcing its crypto tax plans might leave the much sought out visa unnoticed.