In the budget draft published by the Portuguese government today, a 28% income tax is proposed for cryptocurrencies.
The tax will only apply to cryptocurrencies held for less than a year, and cryptocurrencies held for longer will be exempted from these earnings.
Portugal Pushes Button for Crypto Tax
Crypto income tax is included in the 2023 budget draft published by the Portuguese government.
In the draft, which has not yet been approved, a 28% crypto tax is proposed. The tax will apply to cryptocurrencies that have been held for less than a year. Long-term investments will not be affected.
Crypto transactions will be similarly taxed and will reflect 4% on commissions received by brokers.
The budget prepared by the government will be discussed in Parliament in the coming weeks. Given that the ruling party has an absolute majority in Parliament, the budget seems likely to pass.
Parliament rejected two separate crypto tax proposals from opposition parties during a budget session in May 2022.
In early May 2022, Portuguese Finance Minister Fernando Medina signaled that crypto taxation could come, noting that the government would work on the regulatory framework.
The government said these measures would instill a sense of “security and legal certainty” by creating a framework to “promote the crypto economy.”
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