This decision was made during Wednesday’s budget voting session. Today, Portugal’s parliament rejected a proposal for tax Bitcoin on cryptocurrencies.
The left-wing parties Bloco de Esquerda & Livre presented taxation of digital assets at a Wednesday night budget session. However, that idea was rejected, ECO reported via their live blog.
The proposal asked for the government to tax crypto profits exceeding EUR5,000 ($5,340.45).
Portugal is long considered a cryptocurrency tax haven – the proceeds from individual sales of cryptos have been exempted tax since 2018.
Trading digital assets is not an investment income in Europe. Lisbon is a great place to host crypto events and startups, even though businesses that accept cryptocurrency must pay income tax.
However, this may soon be over. This month, Fernando Medina Minister of Finance announced crypto assets would soon be subject to capital gains tax.
Portugal’s government could soon impose a value-added (VAT), stamp duties or property taxes on digital assets. Antonio Mendonca Mendes was the deputy minister for finance, tax affairs and national politics. He stated that taxing crypto is a “complex reality” which may not be sufficient to tax capital gains.