Cryptocurrencies: the end of the free ride?

Portugal has long been considered a cryptocurrency tax haven, which added to the overall appeal of the country for many crypto investors such as the infamous “Bitcoin Family”. 

In fact, up until now cryptocurrencies had simply not been addressed by the Portuguese tax authorities, who did not recognize digital assets as legal tender.

It was probably too good to last. Just as the world is settling into what looks like a long crypto winter, the Portuguese government released its 2023 State budget, which includes a new section proposing a 28% tax on capital gains from cryptocurrencies held for less than a year. That doesn’t sound too bad if you are not a short term trader, except that it implies some sort of mandatory reporting system.

The State Budget also proposes a 4% taxation fee on transfers of cryptocurrencies in instances of inheritance, as well as stamp duties on commissions charged by intermediaries involved in the cryptocurrency sector.

The budget will still have to be approved by the Parliament for any proposed changes to take effect.