The Portugal government deputies spoke at a debate on the State Budget for 2022. There were several proposals that were put upfront. The ongoing debate is meant to last the whole week. Today marks the third day of the process.
So far, various proposals from different parties have been rejected. The proposal to tax cryptocurrencies was one among many other proposals. According to ECO Sapo, a news platform, the proposal for cryptocurrency taxation was denied.
Crypto may not be taxed in Portugal
The proposal that was put upfront for taxation read the following:
“In 2022, the Government adopts the necessary initiatives to establish a tax declaratory obligation on cryptocurrency assets with a view to taxing their capital gains from the minimum threshold of 5000 euros.”
The proposal read
Portugal, one of Europe’s most crypto-friendly countries, recently declared that it would begin taxing cryptocurrency. Many believe that for crypto investors in Portugal, the days of tax-free perks are finished.
Fernando Medina, Portugal’s Finance Minister, made the news. He made the announcement during a parliamentary session on May 13th. Many investors consider Portugal to be a crypto sanctuary. Some cryptocurrency investors have gone so far as to relocate to take advantage of citizenship.
The story was first reported by the ECO, a Portuguese news portal, which stated that the government intended to regulate crypto and digital assets.
“Several countries already have systems. Several countries are building their models regarding this matter and we are going to build ours.”
Medina
The crypto tax is an ambiguous chapter for every nation. The lack of a general framework and a uniform tax policy puts crypto taxation in a tight spot. Portugal was considered a crypto tax haven. The previous announcement that crypto would be taxed in the country demotivated the investors. With Portugal rejecting the proposal to tax cryptocurrency, will it reclaim its title of Crypto Tax Haven?