Hey Crypto Peeps!
One of Europe's most crypto-friendly country, is now in the process of finalizing a 28% Capital Gains Tax on Cryptocurrency.
Despite rejecting two Crypto Tax proposals earlier in 2022, it appears that the 3rd time will be the charm for Portuguese lawmakers.
Here are the key facts to know:
- The 28% Capital Gains Crypto Tax will apply to crypto gains made within one year.
- Crypto Gains made after holding for one year, will continue to be Tax-free.
- A 10% tax will be imposed on any free crypto transfers.
- A 4% tax on commissions charged by brokers, that engage in "crypto operations".
- Where applicable, Portugal will apply Stamp Duties to crypto transactions.
It is sad to say, but it seems that Portugal will no longer be the Crypto Tax Haven it has been since 2016.
If you can read Portuguese, then take a look at the actual 444-page proposed Budget document:
"It’s a regime that fits into our tax system and also to what is being done in the rest of Europe." - António Mendonça Mendes, Secretary of State for Tax Affairs
Interestingly, there is a "Bitcoin Beach" in Portugal; specifically at Meia Praia in the city of Lagos.
This Bitcoin Beach is reportedly made up of crypto users who have fled France and Italy's crypto tax laws.
If this new 28% Crypto Tax passes in Portugal, I could envision another exodus of crypto holders to another more-friendly country.
Maybe these crypto holders can travel to El Salvador and link up with the actual Bitcoin Beach!
In my opinion, this is clearly bad news and I hope somehow this Crypto Tax bill is denied by parliament.
What are your thoughts on this upcoming Crypto tax?
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