Portugal which offers a no-tax system on crypto will be implementing taxation soon according to a statement from the country’s new finance minister Fernando Medina.
On Friday, Fernando Medina, Portugal’s new finance minister, said in parliament that crypto coins will be taxed in the near future.
“Many nations already have systems; many countries are developing models in respect to this subject, and we will develop our own,” Medina said.
While the government has not released specifics on crypto taxes, it has suggested that future plans will include, among other things, a tax on the gains from selling cryptocurrency.
The government will not only tax crypto profits but will also include cryptocurrencies in other types of taxation, such as VAT and Stamp Tax, according to António Mendonça Mendes, Secretary of State for Fiscal Issues.
The Left Bloc (BE), a left-wing opposition party, has recommended that cryptocurrencies be taxed like any other gain under the Internal Revenue Service (IRS), according to the newspaper.
The opposition claims that if the ruling Socialist Party (PS) refuses to incorporate such a modification in the State Budget for 2022 to eliminate the current “offshore of cryptocurrencies,” it will be regrettable.
“It is absurd how the PS refuses to tax fortunes made in seconds on the internet while preserving the VAT on energy and without increasing the minimum wage in the context of inflation,” Mariana Mortágua, a member of parliament for BE, stated.
“We are reviewing by comparing foreign definitions of digital assets, which includes cryptocurrency,” Mendes added. We are assessing the legislation in this area, whether in the battle against money laundering or market regulation, in order to provide a legislative plan that actually helps a country in all aspects, not just the front cover of a newspaper.”
Portugal and the crypto sector
Portugal is one of the few countries in Europe to have a 0% Bitcoin tax, which means that profits from cryptocurrency trading are not taxed.
The blockchain sector has seen gradual changes. The Portuguese government and associated regulatory bodies are keeping a close eye on blockchain technology and cryptos in the fintech industry.
The surge in cryptocurrency acceptance and market capitalization has brought such technologies to the public’s notice in recent years.
Some notable advances in this sector have occurred in the Portuguese market in recent years, most notably the expansion of tech-based enterprises and the continuous increase in the use of cryptocurrencies in the country.