Portugal’s Parliament Kicks Out Bitcoin Tax Proposal

Portugal’s parliament has rejected a proposal to tax Bitcoin and other cryptocurrencies.

The left-wing parties Bloco de Esquerda and Livre had proposed taxing digital assets, but that idea was thrown out.

The proposal had asked the government to consider taxing crypto profits in excess of €5,000 ($5,340.45).

Portugal has long been considered a cryptocurrency tax haven—proceeds from individual sales of cryptocurrencies have been tax-exempt since 2018.

Also, trading digital assets is not considered investment income in the European nation.

But times seems to be changing. Just this month, Minister of Finance Fernando Medina announced that crypto assets in the country soon would be subject to capital gains taxes.

And Portugal’s government also soon could slap a value-added tax (VAT), stamp duties, or property taxes on digital assets after Antonio Mendonça Mendes, the nation’s deputy minister for finance and tax affairs, said at the same session of parliament that taxing crypto was a “complex reality” and capital gains may not suffice.

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