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- Portugal will start taxing crypto gains as it prepares to announces its 2022 budget
- Portuguese Minister of Finance Fernando Medina said that there was no deadline yet on when the rules will come in
- Citizens will likely see their crypto gains taxed at 28% in line with capital gains rates
Portugal will start taxing those who make profits on cryptocurrency trades, according to Portuguese Minister of Finance Fernando Medina. Medina made the comments last week, although gave no time scale for when the change would be implemented. Portuguese crypto investors will obviously be upset by the news, particularly because the tax rate for capital gains in the country is 28%, nearly three times that of the UK. The news is in contrast to a decision by the Germany Federal Ministry of Finance last week that will allow those holding their coins for over one year to have tax-free gains.
Portugal Loses Crypto Tax Haven Status
Portugal has been something of a tax haven for crypto lovers given that, until now, it remained one of the few countries in the world that still allows tax-free crypto trading. This status will come to an end however following Medina’s comments that Portugal was going to join the dozens of countries that are “building their models concerning this issue [crypto taxation]”.
Medina added that he couldn’t commit to a date, saying only that parliamentarians were “going to adapt our legislation and our taxation” to include digital assets.
Bitcoin Family May Have to Move Three Months After Settling Down
The news will be particularly bad for the Taihuttu family, otherwise known as the Bitcoin family, who have spent years living by cryptocurrency. Just three months ago the nomadic fivesome, who sold all their worldly possessions for Bitcoin in 2017 to travel the world, announced that after all those years on the road they were “settling down” in Portugal, with the 0% tax being a major draw.
Portugal’s decision comes a few days after Germany’s Federal Ministry of Finance Christian Lindner announced that citizens who held their crypto investments for over a year would not be taxed on any profits, including cryptocurrencies held for staking.