- Crypto Bills proposed by two left wings got rejected in Budget 2022.
- Capital gains on other financial investments in Portugal are 28%.
On May 25th, the two left-wing parties Bloco de Esquerda and Livre submitted bills to establish taxation on the crypto assets during Portugal State Budget 2022. The bill got rejected as it lost in voting, according to a report by Sapo.
Portugal is known to be the tax haven for crypto assets, as the country hasn’t collected tax for activities carried out using cryptocurrency since 2018.
But a few days prior, Fernando Medina the finance minister of the nation stated that capital gains from crypto will be subjected to taxation. The current tax on capital gains for other financial investments is 28%.
“Many countries already have systems, many countries are building their models in relation to this subject and we will build our own”
But the counter statement made on the announcement was, that the country functions slowly in the implementation of any legislation, and the tax implementation will take at least 2+ years.
On Portugal's plans to tax crypto, a 🧵⬇️,— Jorge. 🇵🇹 (@nftjorge) May 16, 2022
– Finance Minister said crypto would be taxed in a loose statement with few details 3 days ago
– Portugals bureaucracy moves hyper slow, legislation like this takes a long time to move, never mind be implemented, IMO 2+ years
The tax-free environment invented many startups for the nation, if the tax implementation comes into play the status of those small-scale businesses will remain in a questionable state.