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Portuguese Parliament Rejects Two Bills Calling For Crypto Taxation

Portugal’s parliament, Assembleia da República, has rejected two bills that sought to tax cryptocurrencies. Livre and Bloco, two Portuguese left-wing parties, proposed the bills. However, both parties had little representation in Congress. The ruling Socialist Party, which holds the majority of seats in the legislative assembly, has not yet submitted any bill.

This news comes on the heels of Portugal’s Minister of Finance, Fernando Medina, announcing that cryptos will be subject to taxation soon.

Explaining the need for crypto taxation, Medina said,

Many countries already have systems, many countries are building their models in relation to this subject and we will build our own.

This news comes as the crypto market continues performing poorly. This bearish trend, which started late last year, has seen the industry lose over $1 million of its value. At the time of writing, Bitcoin (BTC) is trading at $29,123.68 after losing 2.05%.

Portugal Was Previously a Tax Haven

This news comes after Portugal attracted many crypto adopters due to its 0% capital gains tax. In contrast, US investors pay as much as 37% on short-term capital gains and up to 20% on long-term capital gains.

Among the crypto investors that have relocated to Portugal is the self-proclaimed Bitcoin Family, led by Didi Taihuttu. The family of five is originally from the Netherlands but has traveled the world for five years. Having spent time in 40 countries, the Bitcoin Family decided to settle down in Portugal.

Praising the country’s crypto tax laws, Taihuttu said,

You don’t pay any capital gains tax or anything else in Portugal on cryptocurrency. As long as you don’t earn cryptocurrency for providing services in Portugal, you’re in the clear. That’s a very beautiful bitcoin heaven.

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However, these benefits are soon to be a thing of the past. According to Susana Duarte, an associated partner at the Abreu Advogados law firm in Lisbon, the proposed policy will include a capital gains tax.

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