A draft budget proposal submitted to Parliament by Portuguese Finance Minister Fernando Medina calls for taxing capital gains on cryptocurrency assets held by investors for less than a year.
While the country already taxed capital gains on cryptocurrency holdings from professional or commercial activities, individual citizens were exempt. The new draft budget, however, provides for a 28% levy on the capital gains of cryptocurrency assets held for less than a year. Earnings on cryptos held for a period longer than a year would not be affected.
Proceeds from issuing cryptocurrencies and crypto mining would also be considered income and subject to taxes in the government plan.
Finance Minister Fernando Medina last May said in parliament that cryptocurrencies would soon be subject to taxation.
The draft proposal remains just that and has yet to go through the full legislative process before becoming law.
Among the least affluent of Western European countries, Portugal has for some time promoted its favorable tax policies to entice foreign investors to inject a steady flow of capital into its economy. In 2012, the country launched its Golden Visa Residency by Investment program to stimulate job creation and revive production within Portugal’s borders. Since then, the number of foreign residents in Portugal has increased by around 40%.
Read more: Portugal U-turns on cryptocurrency tax
