Portugal considers a tax on cryptocurrencies

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Portugal plans to impose a tax on cryptocurrency gains in a major policy change for one of Europe’s most cryptocurrency-friendly states.

Portugal currently does not tax profits from cryptocurrency transactions unless they are derived from professional or business activities.

But as Bloomberg reports, this is about to change.

The draft budget for 2023 foresees that gains from digital assets held for less than a year will be taxed. The gains will be taxed at 28%, according to the draft submitted to parliament on Monday.

Digital assets held for more than 365 days would continue to be exempt from tax, according to the draft.

The draft budget, which still needs to be approved in parliament, says that profits from the issuance of new cryptocurrencies and mining activities will also be counted as taxable income.

The government will also introduce a 10% tax on the free transfer of cryptocurrencies and a 4% rate on commissions charged by brokers for cryptocurrency transactions, according to the draft budget.

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