Two proposals that were targeted at taxing crypto assets have been shot down by the Portuguese lawmakers. The bid was brought forth by the left-wing parties, while the majority side is yet to put forth its draft proposals.
Portuguese Lawmakers Halt Motions Intended to Tax Crypto-Related Gains
The Members of the Assembly of the Republic, Portugal’s legislature, have shot down two proposals that were aimed at taxing profits from crypto investments. The two proposals introduced by leftist parties, Livre and Bloco de Esquerda, were blocked by the majority members of the ruling party.
Efforts to adopt the taxation rules on crypto-related capital gains were introduced during the country’s 2022 budget discussion session, according to the Eco report. The developments come in the wake of the recent announcement by Finance Minister Fernandi Medina, who indicated that the government was in the process of drafting a legal framework for the taxation of crypto-related income. He emphasized that it is not acceptable to work with any loophole for capital gains.
Portugal has come out as a crypto friendly-jurisdiction by maintaining a 0% tax on profits made from all private-crypto-related investments. This implies that when the gains are not from professional actions, you do not pay income tax on them.
According to Livre’s proposal, all capital gains from crypto-related actions that exceed USD5,400 should be taxed. The party had also recommended that the country demand that all people declare their crypto assets for the purpose of taxation.
The country’s favorable crypto tax regime and affordable cost of living have transformed it into a hub for digital nomads, tech innovations, and crypto enthusiasts from all over the world.
