Fernando Medina, Finance minister of Portugal has announced on May 13 that crypto taxes will be implemented shortly. Fernando stressed in his remark that several nations have created robust methods for crypto taxes. As a result, the Socialist Party should take efforts to develop its own model for crypto taxation. He also mentioned that the government has been slow to tax digital fortunes made in a matter of seconds and over the internet, but that the country’s energy-related VAT is rock-solid. In addition, he noted that despite the obvious inflation, the administration refused to raise the minimum wage.
Portugal is one of the world’s most cryptocurrency-friendly countries. Portugal does not recognise cryptocurrencies as digital assets, but rather as a payment mechanism. Even though bitcoin isn’t used as legal cash in Portugal (like the euro), citizens can nonetheless trade with it.
In addition, the Portuguese can use the euro to exchange their cryptocurrencies. However, because crypto isn’t recognised as a fiat currency (or legal tender), it can’t be used by the government to pay penalties and taxes, as previously mentioned.
However, the country’s Finance Minister indicated last week that the government will begin enforcing its cryptocurrency tax as soon as possible. Portugal, being one of Europe’s and the world’s most crypto-friendly nations, presents exceptional opportunities for crypto investors and enterprises to migrate and capitalise on the massive potential. However, due to the government’s sluggishness, this warm reception to crypto may be short-lived.
Mariana Mortagua, the country’s deputy assistant in the Republic Assembly, has sought additional studies and research on how other nations have handled cryptocurrency taxes. She claimed that the new legislation will help Portugal move forward in a positive direction.
Read more:
- Bison bank’s subsidiary becomes fifth licenced crypto exchange in Portugal
- Portugal registers first real estate property sale via Bitcoin payment
