Portuguese Budget Proposal Seeks To Impose Tax On Short-Term Crypto Gains

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Fernando Medina; Photo Source: Sintra Noticias (Arquivo)

The budget proposal submitted by Portugal’s Finance Minister will charge a 28% capital gains tax on crypto earnings. If it is accepted, Portugal may lose its standing as one of the last European countries to maintain a tax-free stance on crypto. 

Earlier, Portugal was considered a haven for crypto investors due to its crypto-friendly tax policy. This can be attributed to a bill passed in 2016 that declared crypto assets as non-taxable. 

The 2023 budget proposal calls for a 28% capital tax to be imposed on crypto earnings made within a year. This includes the revenue generated from crypto mining and the issuance of crypto tokens.

It is worth noting that the earnings from crypto assets held for more than a year will remain tax-free.

The draft proposal also aims to impose a 4% tax on free crypto transfers, in addition to charging stamping duties.



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In May, Finance Minister Fernando Medina claimed that the nation will soon implement taxes on crypto investments. In a statement about the taxation on crypto earnings, he added

“I do not want to commit myself to a date at the moment, but we will adapt our legislation and our taxation.”

The 2023 budget proposal was drafted in response to Portugal's slow GDP growth, with analysts expecting only a 1.3% GDP gain for 2023. Besides crypto, the plan will impose tax on the profits made by oil and gas companies.

Written by
Ayush Pande

The budget proposal submitted by Portugal’s Finance Minister will charge a 28% capital gains tax on crypto earnings. If it is accepted, Portugal may lose its standing as one of the last European countries to maintain a tax-free stance on crypto. 

Earlier, Portugal was considered a haven for crypto investors due to its crypto-friendly tax policy. This can be attributed to a bill passed in 2016 that declared crypto assets as non-taxable. 

The 2023 budget proposal calls for a 28% capital tax to be imposed on crypto earnings made within a year. This includes the revenue generated from crypto mining and the issuance of crypto tokens.

It is worth noting that the earnings from crypto assets held for more than a year will remain tax-free.

The draft proposal also aims to impose a 4% tax on free crypto transfers, in addition to charging stamping duties.



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


In May, Finance Minister Fernando Medina claimed that the nation will soon implement taxes on crypto investments. In a statement about the taxation on crypto earnings, he added

“I do not want to commit myself to a date at the moment, but we will adapt our legislation and our taxation.”

The 2023 budget proposal was drafted in response to Portugal's slow GDP growth, with analysts expecting only a 1.3% GDP gain for 2023. Besides crypto, the plan will impose tax on the profits made by oil and gas companies.

Written by
Ayush Pande