Portugal will begin taxing cryptocurrency profits and payments.
Portugal’s Finance Minister, Fernando Medina, has declared that the country would begin taxing cryptocurrencies in a parliamentary session on May 13. Portugal is now one of Europe’s most crypto-friendly countries, with numerous investors flocking to capitalize on the advantages of Portuguese citizenship. However, the crypto refuge may be fleeting and may be due to a slow-to-response government rather than being crypto-friendly. The nation does not presently tax cryptocurrency since it is seen as a means of payment rather than an asset. Mariana Mortágua, a Deputy of the Portuguese Republic’s Assembly, has now requested research into how other nations have handled cryptocurrency taxation in order to go forward with new legislation in Portugal.
A timetable for the adjustments is not yet available. However, this looks to be the most important signal yet that Portugal is not only not crypto-friendly, but also falls behind in terms of legislation. The cryptocurrency laws now being debated in the European Parliament may play a role in facilitating this finding. The new papers include precise definitions of various sorts of digital assets, making it easier for member states to create new tax legislation. The emergence of digital assets is expected to generate problems for countries that are slower to embrace progressive legislation. Interestingly, it looks like Portugal has unintentionally become a refuge for crypto firms.
The ‘Golden Visa’ needs a €280,000 investment in the Portuguese economy and a stay of at least seven days each year. It then gives a six-year fast track to Portuguese citizenship. Golden Visa holders may be unaffected by the changes in crypto taxes in Portugal. Since 2012, the program has collected $6 billion, and modifications to its crypto tax policies will almost certainly result in an exodus of enterprises who relocated to Portugal for this reason. Presight Capital’s Crypto Venture Advisor, Patrick Hansen, said. Paolo Ardoino, CTO of Bitfinex and Tether, branded the move a “trap.”