13 Oct Portugal proposes a taxation on capital gains from crypto trading starting from 2023
The cryptocurrency tax is levied on capital gains realized from cryptocurrency trading within a year of their acquisition. The cryptocurrency tax is supposed to be 28%. Capital gains referring to crypto assets held for more than one year exempt should be exempted from taxation. This proposal is similiar to the German taxation rules for capital gains from cryptocurrencies.
Furthermore, Portugal also proposes a 4% taxation fee of free transfers of cryptocurrencies.
The Portuguese national budget paper published on October 10, 2022, included a short section dealing with the taxation of cryptocurrencies.
The section notes that the Portuguese government intends to create a ‘broad and adequate’ tax framework aimed at cryptocurrencies in terms of their taxation and classification. A proposed income tax from activities such as mining or trading, as well as capital gains, was put forward in the 444-page document.
Germany has recently taken a similar stance on the taxation of cryptocurrencies. The German BMF published a recent letter on May 10, 2022, setting out clear income tax rules for cryptocurrencies and virtual assets. Taxpayers who sell Bitcoin or Ether more than one year after acquisition will not have to pay taxes on the sale if they make a profit.
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