Portugal – crypto tax to be introduced
Portugal will introduce crypto tax after the Portuguese Minister of Finance, Fernando Medina is reported to have stated to the Portuguese parliament that cryptocurrencies in Portugal will be subject to taxation in the near future.
Previously Portugal was considered a crypto tax haven by many people trading and investing in crypto, many who have considered relocating to the country for this reason.
As it stands, tax is charged on earnings from crypto in some circumstances. This includes at a personal level when they constitute a person’s main source of income, similarly where their regularity is considered a professional or entrepreneurial activity.
What is the timeframe for introducing crypto tax in Portugal?
Whilst the timeline for introducing the tax is yet to be agreed, it is understood that the Portuguese government wants to present a new legal framework to ensure a balance between fair taxes and international competitiveness, as quickly as possible.
What is the capital gains tax rate for crypto in Portugal?
The current capital gains tax rate in Portugal for financial investment is 28%. The capital gains tax rate for crypto, when introduced is also likely to be taxed at this 28% rate.
This is considerably higher that the current rate in the UK, which is charged for non-property transactions at 10% for basic-rate taxpayers, and 20% for higher-rate taxpayers. Additionally, in the UK there is a Capital Gains tax-free allowance of £12,300 per person (for the 2022/23 tax year).
UK crypto tax advice
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Working with both individuals and businesses who trade and invest in crypto, we offer a complimentary initial consultation to review your personal circumstances and discuss the best route forward.
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