By Mark Ackman
In recent years, many countries have attempted to adopt a friendly stance towards cryptocurrencies. Over time, most of these countries backed out due to the nature of the crypto-verse.
Although they started with aiming to become a hub for cryptocurrencies but lost their goal due to the constant downfall of the crypto-verse.
Portugal is playing a Big Role
Among the countries that have stayed loyal to cryptocurrencies and have not changed their stance toward digital assets is Portugal.
For years, the country has continued supporting cryptocurrencies, and now, it wants to be rewarded for its contribution.
After letting the cryptocurrency in and letting it thrive, the country is eager to implement taxes on gains from cryptocurrencies.
Portugal is proving that it is set to become a hub for cryptocurrencies in the European continent.
Portugal to Implement Taxes on Crypto Gains
Just recently, it has been proposed that all the users in the country interacting with cryptocurrencies would be liable to pay crypto taxes on their gains.
Although Portugal already has taxes in place for crypto gains they were only for corporate investors. The country now plans on going all out with the implementation of taxes on crypto gains.
The proposal for the new tax implementation on crypto gains has been added to the budget draft for the year 2023. If the parliament approves the new budget, the new tax rule would be in place as well.
New Crypto Tax Rule
Once the draft is approved and becomes law, it would allow tax authorities to monitor crypto gains with more actively.
The tax authorities in the country would have the ability to keep a track of all cryptocurrency transactions in the country. This way, they would be able to track the gains from crypto transactions.
According to the proposal, cryptocurrency investors holding crypto for less than a year would be liable to pay a 28% tax on gains generated from the assets.
Similar Proposals were rejected
This is not the first time this type of bill has been proposed at the parliament. A similar bill was proposed in the earlier months of the year but the lawmakers rejected it.
However, the situation seems to have changed now and this time, it is highly likely that the lawmakers may approve the proposal.
Given the current situation of the European economy which is constantly beaten up by energy and inflation crises, lawmakers may prefer implementing taxes on crypto.
Although it may be alarming news for the crypto community in Portugal there is a major positive side to it.
As the new bill gets passed, it would be a positive sign that the government has finally accepted cryptocurrencies as legal entities.
Most importantly, the government may start keeping tabs on the cryptocurrency service providers offering services to the locals.
This would eventually provide more security and protection to the Portuguese crypto community offering them a safe trading environment.