Portugal is currently one of the most friendly countries in Europe , with many investors moving to take advantage of Portuguese citizenship.
However, Portuguese Finance Minister Fernando Medina confirmed at a parliamentary meeting on May 13 that Portugal would start taxing cryptocurrencies.
The country does not currently tax cryptocurrencies because it considers them to be a means of payment rather than an asset. Mariana Mortágua, a Member of the Portuguese Parliament, has now asked for a study on how other countries have dealt with cryptocurrency taxation in order to move forward with the new rules within Portugal. The timetable for changes is unknown. However, this seems to be the most important indicator so far that Portugal is not friendly to crypto, but lags behind in legislation. Secretary of State for Fiscal Affairs Mendonça Mendes seemingly added:
“BASED ON INTERNATIONAL COMPARISONS, WE EVALUATE THE DEFINITION OF CRYPTO ASSETS. WE ARE EVALUATING THE RULES IN THIS AREA, WHETHER IT IS THE FIGHT AGAINST MONEY LAUNDERING AND THE REGULATION OF MARKETS, IN ORDER TO PRESENT A LEGISLATIVE INITIATIVE THAT REALLY SERVES THE COUNTRY IN ALL ITS ASPECTS, AND NOT A LEGISLATIVE INITIATIVE THAT GETS ON THE FRONT PAGE OF NEWSPAPERS. "
Cryptocurrency legislation, which is currently being passed by the European Parliament, may play a role in this discovery. The new materials set out precise definitions of the different types of digital assets, making it easier for Member States to create new tax laws. The creation of digital assets is likely to have caused difficulties for countries that are adopting progressive legislation more slowly. Interestingly, Portugal seems to have become a paradise for crypto companies without necessarily intending to do so.
The condition for obtaining a "golden visa" is depositing 280,000 euros into the Portuguese economy and spend at least seven days a year in the country. Gold visa holders may not be affected by the change in cryptocurrency taxation in Portugal. Crypto enthusiasts who have moved to Portugal till now are very flexible, they could easily move out of the country; a big loss for the country who might see a lot of substantial capital going away.