Portugal to Lose Crypto Heaven Status as It Announces Gains Duties

Portugal to Lose Crypto Heaven Status as It Announces Gains Duties
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  • On Thursday, Portugal’s Minister of Finance said that the country plans to fix a legal loophole that makes it hard to tax virtual assets right now. People are now more likely to buy virtual assets because of this flaw. If you are new to Crypto investments check  Mysteries Of Bitcoin trading platform which is by far the best.

    Fernando Medina recently did an interview in Lisbon with a group of foreign journalists. He said that this would not be okay. He said that the goal of the government is to set up a new legal framework “as soon as possible” so that there is a balance between fair taxes and being competitive in the international market.

    Portugal is one of the few European countries that doesn’t tax buying or selling cryptocurrencies. People don’t think of cryptocurrencies as foreign currencies or other financial assets, so they don’t treat them like these things. This rule is still being followed.

    There is no value-added tax (VAT) or tax on capital gains when buying or selling assets. Taxes are only put on business transactions in which crypto-assets were used as a form of payment.

    Even though crypto markets have been very unstable in the last few weeks, the company sees new growth opportunities and has even made a website with the bitcoin values of more than 3,000 homes.

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    A law that has been in place for a long time will be changed in a small European country. The law says that income from cryptocurrency isn’t taxed because it’s not a legal currency.

    Fernando Medina, Portugal’s Minister of Finance, has said that his country will start taxing cryptocurrencies, but he hasn’t said when. This will be sad news for many people who want the Golden Visa.

    Sapo says that the plan to start taxing cryptocurrencies on Friday has been approved by the Secretary of State for Tax Affairs. The idea was liked by António Mendonca Mendes, according to reports.

    But neither when the tax will start nor how much it will be has been decided. This tax will apply to profits made from investing in cryptocurrencies like Bitcoin (BTC), which has the largest market capitalization. The law that was passed in 2016 says the opposite. Because cryptocurrencies are not legal money, this rule says that you don’t have to pay taxes on any money you make from trading them.

    During a debate in the Portuguese parliament, Medina said that he thought the tax was fair because Portugal was like other countries with “previously established systems.” Sapo also said that Medina said that not taxing an asset with a capital gain makes no sense. This is what Medina said in response to what Sapo had said.

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    It looks like Medina won’t put too much tax on bitcoin earnings. He said that it is important to find a way to tax that is both “acceptable” and “does not bring in no money, which is the opposite of what it’s supposed to do.”

    Mendes said that taxes on cryptocurrencies are harder than taxes on almost all other types of assets because “there is no standard definition of cryptocurrencies and crypto-assets.” This was said while the legislature was working. He went on to say that until now, Portugal was thought to be a crypto tax haven because of its Golden Visa permanent residence status.

    People with this visa got a break from their taxes and a way to become a citizen. But now no one believes this. A plan called the “Golden Visa” was made to attract more foreign investors.

    Anthony Sassano, who follows business news, thought it was funny that in an interview with Cointelegraph in February, a Portuguese immigrant praised Portuguese merchants for using cryptocurrencies and even thought that Bitcoin might one day be accepted as a legal form of money in the country. On the other hand, the rules about Bitcoin taxes are going to change, so he might have a lot to think about today.

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