Portugal considering capital gains tax for cryptocurrency

Quick Take

  • The Ministry of Finance is eyeing a capital gains tax for crypto.
  • Portugal currently doesn’t view cryptocurrencies as an asset and they are instead treated as a currency.

Portugal’s days as a tax-free haven for crypto investors may be coming to an end. That's according to Portuguese news outlet ECO, which reported last week that the government is planning to bring in new regulations around crypto assets.

The minister of finance, Fernando Medina, confirmed on Friday during a working session that crypto assets will be subject to taxation in the near future. The Portuguese tax authorities are currently looking at cases in other countries to inform recommendations for regulation.

“Several countries already have systems. Several countries are building their models regarding this matter and we are going to build ours,” Medina said.

He additionally emphasized that there couldn't be any “gaps that result in there being gains related to the transaction of assets that aren’t taxed."

At present, Portugal doesn’t view cryptocurrencies as an asset and they are instead treated as a currency, meaning that while businesses that provide cryptocurrency services are taxed, individuals investing in them are not. Medina has suggested that this is more due to a gap in the regulatory system than by actual design.

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