Starting in 2023, Portugal is set to introduce a law on taxing crypto traders with a rate of 28%.
The Parliament has not yet begun to consider this bill, but already many representatives of the crypto industry and experts have criticized it. According to them, if the document is passed, Portugal will forever lose the status of an attractive state for the blockchain industry.
Indeed, the Portuguese government has decided to start taxing the “superprofits” of energy producers as well as capital gains from cryptocurrency investments, Finance Minister Fernando Medina announced on Monday when presenting the draft budget for 2023.
However, Portugal is becoming a real hub for crypto-investors. With its welcoming climate, beautiful beaches and complete lack of taxes on profits made in the crypto-market, Portugal is home to a growing community of young millionaires, who have come to the country to collect their earnings. The very favorable legislation for cryptocurrencies has now made it the new paradise for crypto-investors.
This would no longer be the case given the new bill.
In addition, the Minister of Finance also confirmed his intention to close the legal loophole that prevented the taxation of virtual assets in Portugal, which had made the country particularly attractive for crypto-investors.
Capital gains made in this sector will now be taxed at 28%.