Portugal’s government has proposed a 28% tax on capital gains from cryptocurrencies held for less than a year.
The 2023 State Budget document published featured a short section addressing the taxation of cryptocurrencies, which to date have been untouched by the Portuguese tax authorities, given that digital assets were not recognized as legal tender.
The section notes that the Portuguese government intends to create a ‘broad and adequate’ tax framework aimed at cryptocurrencies in terms of their taxation and classification. A proposed income tax from operations involving cryptocurrencies through activities such as mining or trading, as well as capital gains, was put forward in the 444-page document.
The State Budget also proposes a 4% taxation fee of free transfers of cryptocurrencies in instances of inheritance, as well as stamp duties on commissions charged by intermediaries involved in the cryptocurrency sector. The section concludes by noting that security and legal certainty are provided in the proposed creation of the tax regime in an effort to foster the crypto economy.
