Portuguese Finance Minister Fernando Medina has confirmed that the country will begin taxing cryptocurrency but has not committed to a date.
The decision to start taxing crypto was seconded by António Mendonça Mendes the Secretary of State for Tax Affairs.
There is no actual date for the tax to start or a set rate. It will be levied on investment gains made from cryptocurrencies like Bitcoin which is the largest crypto by market cap. This would reverse the tax law that was established which stated that crypto gains cannot be taxed.
Medina rationale for the tax came about by comparing Portugal to countries that already have systems in place. It appears that Medina will not impose a stifling rate of taxation on crypto gains. He went on to explain that it is important to create and implement a system that makes taxation tolerable, which does not end up reducing revenue to zero.
Portugal has been seen as a crypto tax haven that offers a permanent residency visa known as the Golden Visa because it grants holders special tax exemptions and a path to citizenship. The Golden Visa program started as a means of enticing foreign investors.
