Portugal Planning to Tax Cryptocurrency Soon

Portugal is planning to end the loopholes in its legal system that prevent the government from taxing cryptocurrency. The finance minister of Portugal Fernando Medina said in a press meeting that the government of Portugal is planning to bring legislation on taxing cryptocurrency. 

The finance minister did not announce a deadline, but the Portuguese minister said the government plans to introduce a new law as soon as possible. He said the model adopted by the government is fair and guarantees that Portugal will continue to be a competitive tourist destination.

According to the law that came into force following the Tax Administration's 2016 ruling, Portugal does not consider cryptocurrencies to be foreign currencies or financial assets. Therefore, profits from cryptocurrency transactions are not taxed by the country, making Southern European countries a cryptocurrency paradise.

VAT and capital gains tax do not apply to natural persons trading with crypto assets. The government only taxes business activities paid for in digital assets. In an unprecedented deal "in Portugal and Europe," real estate agency Zome brokered the sale of a three-bedroom home in Braga, worth €110,000 for 3 Bitcoin.