Portugal Proposes 28% Income Tax on Cryptocurrencies Less Than a Year Old

The Portuguese government proposed a 28 percent income tax on cryptocurrencies held for less than a year in a draft 2023 budget released on Monday. Cryptocurrency gains held for more than a year remain tax-free.

Free crypto transactions will also be taxed, and a 4% rate will apply to commissions charged by intermediaries. According to reports, in the next few weeks, the draft budget still needs to be discussed and approved within parliament.

Earlier this month, Portuguese Finance Minister Fernando Medina announced a commitment to begin taxing cryptocurrencies, saying the government would work on creating a framework to promote the crypto-economy to provide a sense of security and legal certainty, as previously reported.