The Portuguese Congress voted against the introduction of income tax on cryptocurrencies

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Despite a statement from the Portuguese Finance Minister, bills to tax digital assets on capital gains have not been approved in Congress.

The Portuguese Congress rejected twobills aimed at taxing cryptocurrencies, which were presented by two leftist parties Livre and Bloco. The ruling Socialist Party, which has a majority in the legislature, has yet to introduce any legislation after Portuguese Finance Minister Fernando Medina announced that cryptocurrencies would be subject to taxation in the near future.

“Many countries already have systems, many countries are building their models, and we will build ours,” Medina said.

Partner at the law firm Abreu AdvogadosSusana Duarte confirmed that the new policy proposed by the government will include a capital gains tax. Currently, Portugal does not charge income tax on digital assets. At the same time, investors in the traditional asset market pay 28% capital gains tax. Many investors believe that this is unfair and demand equalization of taxation of assets. 

The Secretary fortax issues Antonio Mendonca Mendes, who announced the imminent introduction of an income tax on crypto assets. According to the official, the Portuguese authorities are now studying the taxation of digital currencies in other countries. After considering the issue, the department will issue recommendations on the taxation of cryptocurrencies. However, it is not yet clear how this will affect the investment climate for the country. 

Before talking about introducing taxation oncapital gains Portugal was considered one of the countries with a favorable climate for the development of the crypto industry. It was to this country that the famous Bitcoin family moved from Holland in February to escape taxes.