Breaking: Portugal Takes U-Turn On Crypto Taxation

Hardly ten days after the country’s finance minister indicated that cryptocurrencies could be taxed in the near future, Portugal made another key decision. The latest move on Portugal crypto tax comes after the government placed its budget for 2022 in its Parliament on Wednesday.
Portugal, The Crypto Tax Haven
On May 16, Portuguese minister of finance Fernando Medina said several countries have been building models around crypto taxation. Prior to the announcement, the country had the rare distinction of being a ‘tax haven’. Crypto investors around the world considered Portugal a convenient place to invest as it had no tax on crytocurrencies.
Also, Portugal has always been at the forefront of crypto adoption. In January 2022, the first physical store https://coingape.com/portugal-opens-first-physical-store-for-buying-and-selling-of-bitcoin/ that allowed buying and selling cryptocurrencies in Portugal had opened.
Portugal also considers cryptocurrencies to be a form of payment as against mere digital assets. This adds to Portugal’s overall status as a crypto-friendly country, alongside El Salvador.
New Proposal Rejected
In a latest development that could come across a welcome move for crypto investors, the Portuguese government made an announcement on Wednesday. The country’s earlier proposal to tax cryptocurrencies has been rejected by the Parliament.
While western countries continue to make moves in the direction of embracing the cryptocurrencies, India on the other hand has been harsh with its rules. Earlier this year in March, the country approved a 30% crypto tax proposed as part of its national budget for 2022-23. The proposal also included a 1% tax deducted at source (TDS) on every crypto transaction.
However, this has led to widespread criticism in the country. Many believe the rules could hit India with a potential brain drain in the cryptocurrency industry.
On the other side, Slovenia had last month announced a new flat tax plan for the country. A 5% flat tax was introduced to help simplify the process of digital currency transactions in the country.
- Analyst Turn Bullish with $400 SOL Target as Hong Kong Approves First-Ever Solana ETF in Asia
- Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash
- BSC Meme Season Ends as PumpFun Surpasses Four Meme Amid $8M Inflows
- ProShares Files for Index Crypto ETF Tracking Bitcoin, Ethereum, XRP, and Solana
- Trump Says Meeting with China May Not Happen, Bitcoin Drops
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism