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Fernando Medina, Portugal’s finance minister, has proposed taxing capital gains on cryptocurrency investments held for less than a year in a budget drafted to the parliament.
Individual nationals were exempt from the country’s capital gains tax on bitcoin holdings made from professional or business activity. However, the latest budget draft proposes a 28% tax on capital gains from bitcoin assets for under a year. Revenues on cryptocurrencies held for more than a year will not be impacted.
Portugal proposes taxes on cryptos; Logan Paul’s $623K NFT is now worth $10
According to the government plan, earnings from cryptocurrency issuing and mining will likewise be taxed as income.
In May last year, Finance Minister Fernando Medina informed the legislature that taxes would soon be levied on cryptocurrency. The draught plan is still just that, and before it can become law, it must still go through the entire parliamentary process.
Portugal, one of the less developed nations in Western Europe, has long marketed its benevolent tax laws. This is to lure in constant capital inflows from international investors.
To encourage job creation and restart production within Portugal’s borders. Thus the nation introduced the Golden Visa residence by investment programme in 2012. Since then, Portugal has seen a 40% increase in foreign inhabitants.