Portugal is often referred to in the media as a European tax haven, especially when it comes to crypto. Be that as it may, it looks like that portion of Portugal’s reputation is coming to a close.
On Friday, May 13th, Portugal’s Minister of Finance Fernando Medina remarked that cryptocurrency will soon be subject to the same tax rulings as any other capital gains.
A Switch in the Perception of Cryptocurrency
Ever since 2018, Portugal has seen cryptocurrency trades as the exchange of money, rather than investments. The hitherto held perspective had previously allowed crypto to be excused from the 28% capital gains tax, and the resulting 0% effective tax rate fascinated crypto investors from all around the world, leading to Lisbon becoming a central crypto hub, to the surprise of few.
However, the official stance is that Portugal had always wanted to implement crypto regulations. The claim was confirmed by lawyers working on the new legal framework, who opposed the popular belief that Portugal held a business-friendly attitude towards crypto on purpose. “It is an area in which there is a lot more knowledge and a lot more progress, so that Portugal can learn from international experience”, explained Medina, the Minister of Finance.
Tax Regulations on Crypto Getting Intense
In related news, the Australian government has issued a warning to users that have failed to pay taxes on transactions carried out with NFTs and cryptocurrencies. The UK High Court recently ruled that NFTs are valuable property protected by law, and even China, where Bitcoin and other cryptocurrencies are officially banned, has recently acknowledged Bitcoin as holding economical value. In the midst of the crypto market faltering of late, it is only to be expected that more countries would draw up regulations for the historically volatile crypto sector.