Portugal proposes 28% tax on crypto profits

Portugal may soon cease to be a tax-free haven for crypto investors.

Yesterday, the Portuguese government published the plan for its 2023 budget, in which it proposed a 28% tax on capital gains for cryptocurrency held for less than one year. This would bring cryptocurrency into line with the tax charged on profits for other investments.

Despite this, Portugal would remain one of the more crypto-friendly nations in Europe. Under the proposed taxation rules, which still have to pass approval in parliament, cryptocurrency held for more than a year will still be subject to a 0% capital gains tax. This is also how profits on cryptocurrencies are taxed in Germany.