Portuguese Parliament to Vote on Crypto Tax Framework

According to a paper issued by the government of Portugal, the country might become less crypto-friendly soon, despite having a reputation as a “crypto haven”. Namely, if passed, a new crypto tax framework will be in effect as of 2023, that will introduce capital gains tax on crypto in Portugal.

Investors would need to pay the standard 28% capital gains tax rate. However, they will be tax-exempt when trading with crypto assets they held for over a year. In addition, all free crypto transfers are subject to a 4% taxation.

This is bad news for many crypto investors who have relocated to Portugal precisely to avoid crypto taxes. For instance, Meia Praia is home to the so-called “Bitcoin Beach”, a place associated with investors who have emigrated to Portugal from Italy and France.

We’ll see whether they’ll need to relocate again, once the Portuguese Parliament votes on the proposal.