Portugal’s Finance Minister Fernando Medina has confirmed that the southern European nation will begin taxing cryptocurrencies, reversing a six-year-old tax law that excluded crypto gains on the grounds that they are not legal tender.
The current capital gains tax rate for financial investment in Portugal is 28 percent. However, legislation relating to the introduction of such an impost on crypto could take two or more years to implement, given Portugal’s notoriously slow-moving bureaucracy:
Portugal’s altered tax stance will bring the country into line with many other nations around the globe. Among them are Australia – whose Tax Office earlier this week warned investors of the need to report annual crypto capital gains and losses – the UK and US.
Goodbye ‘Golden Visa’
Until now, Portugal has been seen as a crypto tax haven that offers permanent residency via what is known as the ‘Golden Visa’, because it grants holders special tax exemptions and a path to citizenship. The program was instituted as a means of attracting foreign investors, and in response to the country’s new tax plan, industry observer and cyber security professional Anthony Sassano saw the funny side:
Portugal may wish to take note of the fact that late last month, Panama passed a bill exempting crypto from capital gains tax, making the Central/South American republic a more attractive destination for digital asset investors.
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