Spread the love

Many Golden Visa applicants will be disappointed to learn that Portuguese Finance Minister Fernando Medina has confirmed that his country will begin taxing cryptocurrency but has not given a specific date. According to Sapo, a local news agency, Secretary of State for Tax Affairs António Mendonça Mendes seconded the measure to tax crypto on May 13.

However, there is no specified commencement date or rate for the tax. It will be imposed on investment gains made from cryptocurrencies such as Bitcoin, which has the greatest market capitalization. This would overturn a 2016 tax law that said that because cryptocurrency is not legal cash, gains cannot be taxed.

Medina explained his reasoning for the tax during a working session in Parliament, comparing Portugal to countries that “already have systems.” According to Sapo, Medina stated that an asset that generates capital gains should not be taxed. He said:

“There cannot be gaps that cause capital gains about the transaction of assets that do not have a tax.”

Medina does not plan to tax crypto earnings at a high rate. He went on to say that it’s critical to design and implement a system that makes taxing “sufficient” but doesn’t “end up decreasing revenue to nothing, which is contradictory to the goal for which it exists.” Until now, Portugal has been regarded as a crypto tax haven, offering a permanent residency card known as the Golden Visa, which provides holders with specific tax benefits and a road to citizenship. The Golden Visa scheme was created to encourage international investment.

Leave a Reply

Your email address will not be published. Required fields are marked *