As of the end of May 2022, Portugal’s new finance minister caused quite a commotion when he announced his attention to intention to begin imposing taxes on cryptocurrency transactions and gains “in the near future”.
Since the decision of tax authorities in 2016 to treat cryptocurrencies as, well, currencies, rather than commodities or securities, as is common in most countries, the country has attracted an immense amount of thousands of crypto-investors and traders in recent years.
“Portugal is one of only a handful of European countries where investors may realize crypto gains without triggering a taxable event.” – IMI Daily
The new government has yet to state the rate of capital gains tax on crypto. Many seem to believe that this type of expedited introduction to such legislation won’t happen until at least a year from now. Others believe that this type of adoption of crypto taxes in Portugal could take even longer to become a reality. It is said that Portugal’s Center for Tax Studies has been trying to assess how to implement crypto taxation since March 2021, and ever since, it has proven to be quite a challenge.
In many professional opinions, the possible changes in tax law for taxation of crypto transactions and/or capital gains will not have a major impact on demand for Golden Visa, as it is not possible to make an investment directly with crypto assets in Portugal. While properties in Portugal can be purchased directly with crypto, property assets for the purpose of obtaining golden visas must still be carried out in fiat.
Read more details via IMI Daily.
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