Portugal’s parliament has declined a proposal to tax Bitcoin (BTC) and other cryptocurrencies at the present time.
The proposal given to the government was to consider taxing all crypto profits that surpassed the value of €5,000 ($5,340.45).
Left-wing parties Bloco de Esquerda and Livre proposed taxing crypto holders on their digital assets. The idea was declined by Portugal’s parliament at the evening budget voting session on Wednesday, according to online newspaper ECO.
The country is one of 11 that do not enforce a capital gains tax on digital assets. In fact, anyone invested in BTC need not be concerned in Portugal as proceeds from users’ individual sales have been tax-exempt since 2018.
Across the nation, the trading of digital assets is not considered as a source of investment income. However, the four years as a ‘tax-haven’ country may soon be coming to an end.
In a recent announcement, minister of finance Fernando Medina declared that capital gains taxes would eventually be applied to crypto assets in the country.
Value-added tax (VAT), stamp duties or property taxes on digital assets could be the fate of Portugal soon enough.
However, the nation’s deputy minister for finance and tax affairs, Antonio Mendonça Mendes, said that taxing crypto was a “complex reality” and capital gains may not suffice.
In January, Thailand reported that crypto traders were to be subject to 15% capital gains tax, however, a month later the idea was revoked, the tax proposal was axed and traders were able to offset annual losses against gains that have been made in the same year.
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