Portugal Aiming To Tax Short-Term Crypto Gains In 2023

Twitter icon  •  Published há 1 ano  •  Nikolas Sargeant

The latest chapter in the country’s taxation of digital currency sees the government proposing a new tax policy targeting short-term crypto asset owners

Portugal was once slated as the number one destination for cryptocurrency investors. But, in May 2022, we saw the Portugal government look to begin taxing cryptocurrency. The latest chapter in the country’s taxation of digital currency sees the government proposing a new tax policy targeting short-term crypto asset owners. 

Portugal's New Tax Policy

As policymakers eye short-term crypto asset owners, crypto investors may soon be subject to new taxation laws. According to Bloomberg, the government of Portugal plans a new strategy to broaden its existing crypto tax policies. 

The plans are aimed at residents that have held crypto for less than a year, which is part of the proposals listed in the country’s 2023 budget. The move will see a 28% levy on gains earned from digital assets held for less than 12 months. 

The new law will significantly change Portugal's view on crypto taxation. Before the change, the country only levied taxes on cryptocurrency earned from professional or business sources. Anyone who makes a profit on trading digital assets held for less than a year will be liable to pay taxes, while those who have held assets for longer are exempted from taxation.

The draft budget stated that free crypto transfers would incur a 10% tax, while commissions charged by brokers on transactions would pay a 4% tax. On top of that, crypto issuance and mining may see tax obligations in the future.

A statement made by António Mendonça Mendes, Portugal’s Secretary of State for Tax Affairs, “It’s a regime that fits into our tax system and also to what is being done in the rest of Europe.” Portugal’s parliament must approve the new proposal before it becomes law. 

Cryptocurrency Taxation

Portugal is a unique case; as the taxation situation, there is a look into what we might see in the future for countries across the globe. We have seen interest in cryptocurrency taxation ramping up in recent times. 

India imposed a 30% capital gains tax on digital asset holdings and transfers and a 1% tax deducted at source on all digital transactions. While South Korea, a crypto-friendly country, has postponed plans to levy a 20% tax on crypto holdings until 2025. 

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.