Unprecedented anti-cryptocurrency law may be adopted in Portugal

One of the most cryptocurrency-friendly countries (and the most progressive in Europe), Portugal, may change its policy on digital assets. Government officials have drafted a bill that proposes to introduce a tax on profits from digital currency transactions in Portugal. Its rate will be 28%.

Currently, only those transactions with cryptocurrencies made by financial companies and investment funds are taxed in Portugal. As a result, Portugal is home to a large number of crypto investors who want to invest legally and pay a minimum of taxes. As for the upcoming taxation, it will apply to all investors who purchased digital assets less than 12 months ago. The zero tax rate has been promised to be preserved for traders who have owned cryptocurrencies for more than a year.

The Portuguese parliament, in turn, proposed to introduce a 10% tax on operations such as token distribution. The bills have not yet been considered, but representatives of the crypto sector and experts have already criticized the government’s new ideas. According to analysts, if the document is adopted, Portugal will lose its status as an attractive European country for the blockchain industry forever.

There is a high probability that the bill will be adopted, as the Portuguese authorities have been talking about introducing a cryptocurrency income tax since the beginning of May this year. «Some countries already have a tax system that allows them to levy taxes on cryptocurrencies. Some are just working on this issue, and we also have to develop our own system,» said Antonio Mendes, the State Secretary for Taxes, at the time.