There will be no more tax haven status for cryptocurrencies in Portugal, according to Finance Minister Fernando Medina.
Fernando Medina, Portugal’s Finance Minister, revealed in a parliamentary session on May 13 that Portugal would begin taxing bitcoin.
As one of Europe’s most crypto-friendly nations, Portugal has attracted numerous investors looking to take advantage of the tax advantages that come with being a citizen of that country.
It’s possible that the crypto-friendly administration is more to blame for the government’s poor response time than it is for the haven’s short lifespan. Currently, the nation doesn’t tax crypto since it is considered a form of payment, not an asset.
Some of the May 13 sessions were translated by portugal.com, and Medina is quoted as saying: A lot of other nations are already working on their own systems, and we’re going to do the same.” Despite the fact that inflation is on the rise and wages are stagnant, the [Socialist Party] refuses to tax the wealth produced in a matter of seconds while preserving VAT on energy and without raising the minimum wage.”
After receiving requests from many other nations for information on how they’ve dealt with taxing bitcoin, Portuguese Delegate Mariana Mortágua has sought an investigation into how the country should proceed with new regulations.
The exact date of the adjustments has yet to be determined. It is clear that Portugal is not only not crypto-friendly, but also legislatively lagging behind. Mendonça Mendes, the Secretary of State for Fiscal Issues, seems to add,
Cryptoassets are being evaluated by making worldwide comparisons, and this includes looking at the concept of cryptocurrency. Regulations in this area are being evaluated to provide a legislative proposal that actually supports a nation in all areas rather than one designed just to make the front cover of a paper. Be it in the battle against money laundering or market regulation.
The European Parliament’s current debate on cryptocurrency law may have a role to play in this revelation. The new papers provide clear definitions of various sorts of digital assets, making it simpler for member states to create new tax legislation.
In countries that have been slower to embrace progressive laws, the emergence of digital assets has probably generated challenges. Although Portugal may not have intended to become a refuge for crypto firms, it does seem that the country has taken this path.
In the top search for “Portugal tax crypto-friendly,” the website getgoldenvisa.com indicates that, “Portugal is a great model for other European nations because of its openness to cryptography.” “It stimulates international entrepreneurship and investment by enabling them to earn bitcoins without paying taxes.”
At least seven days per year in Portugal are required for those with the ‘Golden Visa,’ which demands an investment of €280,000 into the Portuguese economy. It then provides a six-year path to Portuguese citizenship. Holders of Golden Visas may be exempt from the new tax laws in Portugal that apply to cryptocurrencies.
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