Portugal’s Parliament rejected a proposal to tax Bitcoin and other cryptocurrencies yesterday.
The left-wing parties, Bloco de Esquerda, and Livre advocated taxing digital assets during yesterday evening’s budget discussion, but the plan was rejected.
The proposal requested that the Government explore taxing cryptocurrency revenues over €5,000 ($5,340.45).
Portugal has long been regarded as a bitcoin tax haven, and since 2018, revenues from individual cryptocurrency sales have been tax-free. In order to stimulate innovation, the country created tax policies that were favorable to cryptocurrencies.
Furthermore, digital trading assets are not considered investment income in the European country. As a result, crypto companies and events flock to Lisbon, despite the fact that firms that accept cryptocurrency must pay income tax on their earnings.
That, though, may come to an end as Minister of Finance, Fernando Medina has indicated that crypto assets in the country will be subject to capital gains taxes in the near future.
Additionally, Portugal’s Government may soon impose a Value-Added Tax (VAT), Stamp Duty, or Property taxes on digital assets after Antonio Mendonça Mendes, the Country’s Deputy Minister for Finance and Tax affairs, said during the same session that taxing crypto was a “complex reality” and that capital gains may not be enough.