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Portugal’s parliament turns down proposals for Bitcoin taxation

Portugal's parliament turns down proposals for Bitcoin taxation
TL;DR Breakdown
  • Bitcoin and crypto assets are free from taxation in Portugal after the congress dismissed proposals
  • Portugal’s government may soon impose a value-added tax (VAT), stamp duties, or property taxes on digital assets

Portugal’s parliament has dismissed a proposal to tax Bitcoin and other cryptocurrencies. The left-wing parties Bloco de Esquerda and Livre advocated taxing digital assets during a Wednesday evening budget discussion, but the suggestion was rejected, according to online daily ECO’s live blog. 

It is worth noting that the two rejected proposals came from the minority parties in the parliament. The Socialist Party, which is now in authority and holds the majority of the legislature, has yet to propose any policies. However, there is a chance that in the near future, Portugal will no longer exempt Bitcoin and other cryptocurrencies from taxation.

Portugal has long been regarded as a bitcoin tax haven, with profits from individual cryptocurrency sales tax free since 2018.

Furthermore, in the European country, trading digital assets are not considered investment income. As a result, Lisbon is attractive to crypto companies and events, despite the fact that firms that accept cryptocurrency must pay income tax on their earnings.

The future of Bitcoin taxation in Portugal

However, this could be coming to an end. The country’s Finance Minister, Fernando Medina, announced earlier this month that the government would begin taxing cryptocurrency. He also claimed that the government would work on the regulatory framework, although he did not specify when this would take place.

Furthermore, he added that the tax system should not contain any “gaps” that would result in some earnings not being taxed in the country.

Mariana Mortágua, a member of parliament from the Bloco de Esquerda who has been vocal about crypto taxation, criticized the administration for failing to find a way to tax cryptocurrency before the vote. Mortágua is one of the most outspoken advocates for crypto taxes.

In addition, Portugal’s government may soon impose a value-added tax (VAT), stamp duties, or property taxes on digital assets. This is after Antonio Mendonça Mendes, the country’s deputy minister for finance and tax affairs, said during the same session of parliament that taxing crypto was a “complex reality” and that capital gains might not be enough.

Benson Mawira

Benson Mawira

Benson Mawira is a content writer with aesthetic expertise in different types of SEO-based articles of niches related to technology. I write news on cryptos, NFTs, and also Blockchain. I am to provide high-quality and plagiarism-free work to clients.

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