Portugal's Parliament Rules Out Bitcoin Tax

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Portuguese lawmakers recently rejected a proposal to tax Bitcoin and other crypto assets.

In a budget meeting on Wednesday evening, the left-wing parties Bloco de Esquerda and Livre proposed taxing digital assets, but the idea was thrown out. As part of the proposal, the government was asked to consider taxing crypto profits over €5,000

The Portuguese government has long been considered a cryptocurrency tax haven - since 2018, individual sales of cryptocurrencies are tax-exempt in Portugal. The European nation does not consider trading digital assets as investment income. It is for this reason that Lisbon is attractive to crypto startups and events, although businesses that accept crypto are subject to income tax.

However, that may be ending soon. Fernando Medina, the Minister of Finance, announced this month that crypto assets in the country would soon be subject to capital gains taxes.

Moreover, Portugal's government may soon slap a value-added tax (VAT), stamp duties, or property tax on crypto-assets after Antonio Mendonça Mendes, the nation's deputy minister for finance and tax affairs, disclosed at the same session of parliament that taxing crypto is a "complex reality" and capital gains may not suffice.

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