Portugal will be "hodling friendly"

[joker_josue]

Today the Study Budget for 2023 was delivered for Portugal.

And with the novelty of cryptoassets (coins, NFTs and the like) they are now taxed at 28%. 
But, there is a "good" but! 

This fee will only be on the capital gains of crypto-assets “held for a period of less than one year”. Profits made by crypto assets obtained for more than 365 days are exempt from taxation.

The main points are:

The main novelty concerns the gains obtained with crypto-assets held for less than a year, as is the case with the profits generated by the sale of cryptocurrencies such as bitcoin. The regime, which is similar to that of shares, implies that taxpayers have to declare these operations and pay a 28% IRS tax, or opt for aggregation.

If the assets are held for more than one year, these earnings are exempt. On this point, the proposal's articles clarifies that, for this count, the holding period of crypto assets acquired before the date of entry into force of the new regime is also accounted for.

Still in terms of the IRS, the Government proposes “the taxation of income from operations with crypto-assets such as business and professional income”. Here, other activities are included, such as cryptocurrency mining and cryptocurrency issuance.

The budget will now be debated in parliament and then it will have to be approved.
Since the government has an absolute majority, it will certainly pass. Of course, there may still be some adjustment regarding these measures.

Source (in PT): https://eco.sapo.pt/2022/10/10/ganhos-com-criptomoedas-detidas-por-menos-de-um-ano-vao-pagar-28-em-irs/

[famososMuertos]

I think that it is the irremediable line to follow in many countries, but the thought has to be maintained, people must know that they give up at will a right that due to the condition of ideas within bitcoin they should not, but that in today's society and of which we depend we must yield.

That said Portugal has always been on the threshold of friendly zones, so to speak, I have been looking for what The Bitcoin Family (Taihuttu) think about this but I have not seen anything official.

[Cryptock]

I think that it is the irremediable line to follow in many countries, but the thought has to be maintained, people must know that they give up at will a right that due to the condition of ideas within bitcoin they should not, but that in today's society and of which we depend we must yield.

That said Portugal has always been on the threshold of friendly zones, so to speak, I have been looking for what The Bitcoin Family (Taihuttu) think about this but I have not seen anything official.

Oh Gosh - 28% tax
I think the gov should give waver to them for they help themselves and the country - I am impressed the way Nigeria and Philippines has worked on the crypto - they have helped the locals and locals have helped bringing the revenus to the country

[KennyR]

I think that it is the irremediable line to follow in many countries, but the thought has to be maintained, people must know that they give up at will a right that due to the condition of ideas within bitcoin they should not, but that in today's society and of which we depend we must yield.

That said Portugal has always been on the threshold of friendly zones, so to speak, I have been looking for what The Bitcoin Family (Taihuttu) think about this but I have not seen anything official.

Oh Gosh - 28% tax
I think the gov should give waver to them for they help themselves and the country - I am impressed the way Nigeria and Philippines has worked on the crypto - they have helped the locals and locals have helped bringing the revenus to the country

This is quite common range of taxation. I don't find this to be big, because every country have got its own taxation. Many countries add it to the list of investment and not into currency/assets. The capital gains taxation on different countries are found higher than this. In Belgium it is found to be 33% and in India it is 30% and it continues with 1% tds. The sad part, Portugal being one of the country that have been into the list having tax exemption for cryptocurrency apart from the business profits adding 28% tax.

[coolcoinz]

Great news!

Oh Gosh - 28% tax

It's not much since you can hold for a year and get 0%, pretty much like in Germany. I find this to be a fair tax, as many countries have close to 20% income tax that you pay regardless of whether you're a holder or a trader.

What would you rather have? 28% if you sell in less than a year, or 20% flat tax without exceptions?

[Hydrogen]

Portugal recently implemented a digital nomad VISA to make it easier for whales earning internet revenue to travel to and reside in the country.

Portugal’s new digital nomad visa just made working remotely from a European beach easier

When you think "digital nomad," you might immediately think about tropical destinations.

But the trend has also been growing in Europe, and Portugal just announced a new digital nomad scheme that will open for applications this month.

The government confirmed last week that from Oct. 30, workers from any countries that aren't part of the European Union or European Economic Area can apply for the remote work and residency visa.

Proof of tax residency, employment details, such as a contract, and evidence of workers' income will be required.

Applicants will also need to be earning at least four times as much as the Portuguese national wage. That is currently 822 euros ($798), so the minimum monthly income for digital nomads would be around 3,288 euros.

https://www.msn.com/en-us/travel/news/portugal-e2-80-99s-new-digital-nomad-visa-just-made-working-remotely-from-a-european-beach-easier/ar-AA12NjO9

Spain also recently implemented a similar digital nomad VISA program.

I would guess countries like puerto rico are having success as popular financial safe havens for americans migrating abroad.

Enough so that european nations are implementing measures to emulate their success.

[sheenshane]

This is quite common range of taxation. I don't find this to be big, because every country have got its own taxation. Many countries add it to the list of investment and not into currency/assets. The capital gains taxation on different countries are found higher than this. In Belgium it is found to be 33% and in India it is 30% and it continues with 1% tds. The sad part, Portugal being one of the country that have been into the list having tax exemption for cryptocurrency apart from the business profits adding 28% tax.

I tend to agree and based on this Cointelegraph article which is the worse country for crypto taxation was in Belgium.

This is good news, more adoption and taxation implementation mean it will cause more transactions and also more holders as well.  The basic law of increasing the Bitcoin price was in the demand and the supply which is no doubt this will likely happen in the future.

[samcrypto]

This is quite common range of taxation. I don't find this to be big, because every country have got its own taxation. Many countries add it to the list of investment and not into currency/assets. The capital gains taxation on different countries are found higher than this. In Belgium it is found to be 33% and in India it is 30% and it continues with 1% tds. The sad part, Portugal being one of the country that have been into the list having tax exemption for cryptocurrency apart from the business profits adding 28% tax.

I tend to agree and based on this Cointelegraph article which is the worse country for crypto taxation was in Belgium.

This is good news, more adoption and taxation implementation mean it will cause more transactions and also more holders as well.  The basic law of increasing the Bitcoin price was in the demand and the supply which is no doubt this will likely happen in the future.

This means they fully accept crypto and consider this as legal tender right?  This could be a good start of a mass adoption and having that tax can be good at some point, though holding longer can always be a good benefit for the investors. Some countries really have a huge tax with cryptocurrency, we’re still lucky that our country is still a tax free for a crypto profit, regulations might begin to strict though as many banks started to show their interest with crypto.

[joker_josue]

Oh Gosh - 28% tax

This is the rate paid in Portugal for capital gains on investments in assets (stock exchange and similar). So they would hardly create a tax below 28% for cryptocurrencies. The fact that this tax is only valid for capital gains realized in the year of purchase of the cryptocurrency, allows the person to hold without selling the currency, until that year passes.
I think that was an adequate measure, for a country that until now was tax-free on crypto.

That said Portugal has always been on the threshold of friendly zones, so to speak, I have been looking for what The Bitcoin Family (Taihuttu) think about this but I have not seen anything official.

The matter is very recent, these measures were announced today, so it's normal that they haven't said anything yet.
Another interesting point is that they must have Bitcoin with much more than a year in their wallet. Therefore, it will not be difficult for them to overcome this rule, with some ease.

[Lucius]

It is not surprising that Portugal is adjusting its laws on the taxation of crypto assets, which is just following what some other countries within the EU have adopted when it comes to taxation of this type. There are at least two other countries that have a tax rate of 0% after a certain period of investment, but also those that have tax-exempt up to a certain amount in one calendar year.

I think that everyone anywhere in the world would agree with such tax rules, especially those who invest for a long term of 1 or 2 years.

[tabas]

Oh Gosh - 28% tax
I think the gov should give waver to them for they help themselves and the country - I am impressed the way Nigeria and Philippines has worked on the crypto - they have helped the locals and locals have helped bringing the revenus to the country

As per as the other details, you'll be exempted if you've been holding for more than a year. India has got this tax way higher than Portugal @ 30% tax.
This is applicable for the long term holders and you just have to let it sit for a year and one just to pass on that incentive.
So, basically if someone has sold bitcoin or other crypto and holds it for more than a year in a stable coin and later on converts into fiat. That can exempt him in that 28%, right?

[Lucius]

~snip~
So, basically if someone has sold bitcoin or other crypto and holds it for more than a year in a stable coin and later on converts into fiat. That can exempt him in that 28%, right?

In principle, it should be like that, unless the legislator specifies otherwise. In essence, it doesn't matter to them if you sold Bitcoin or any other cryptocurrency a year after you bought it. It is crucial to prove when you bought something and when you convert to fiat.

[Poker Player]

There are at least two other countries that have a tax rate of 0% after a certain period of investment, but also those that have tax-exempt up to a certain amount in one calendar year.

I knew about Germany:

Germany Affirms Crypto Sold After One Year Is Tax-free

What's the other one?

I think that everyone anywhere in the world would agree with such tax rules, especially those who invest for a long term of 1 or 2 years.

Not everyone. Many politicians are so narrow-minded that such a measure will be a matter of a few isolated countries. With the global trend towards more and more public spending and taxes, exempting a tax is not something that is going to be generalized.

[joker_josue]

So, basically if someone has sold bitcoin or other crypto and holds it for more than a year in a stable coin and later on converts into fiat. That can exempt him in that 28%, right?

Despite these rules not yet completely closed. What can be understood is that if the user keeps the crypto asset (currency or NFT), for more than one year after the purchase, it is not taxed.

The information is still not clear enough, if this is valid in the exchange between currencies or even if it is for a stablecoin. As of this writing, it is valid for all cryptoassets, which includes everything.

[Lucius]

What's the other one?

The one that no one considers too important to be mentioned in almost any context when it comes to Bitcoin, but no one could have imagined that such an insignificant country could play the final of the 2018 World Cup in Russia

Unlike Germany, I don't have to pay tax until after 2 years - but I also don't have to pay any tax on all crypto investments before January 1, 2016 if I can prove it.

Not everyone. Many politicians are so narrow-minded that such a measure will be a matter of a few isolated countries. With the global trend towards more and more public spending and taxes, exempting a tax is not something that is going to be generalized.

I wasn't thinking of politicians and their servants, but of ordinary people who certainly wouldn't have anything against paying 0% tax, even if they had to wait for it for several years. When you look only at the differences within the EU when it comes to taxation and regulation of cryptocurrencies, then you see how many differences there are according to something that should be harmonized across the entire union.

Slovenia is also a very friendly country towards cryptocurrencies, I think there is a topic about it in the Legal board, and from this year all crypto profits (for individuals) up to EUR 15 000 should be tax-free.

[joker_josue]

I wasn't thinking of politicians and their servants, but of ordinary people who certainly wouldn't have anything against paying 0% tax, even if they had to wait for it for several years. When you look only at the differences within the EU when it comes to taxation and regulation of cryptocurrencies, then you see how many differences there are according to something that should be harmonized across the entire union.

Probably at the beginning of next year we will have news regarding the regulation by the EU. Perhaps this issue of war has delayed legislation by the European Union a little. The last news I saw about it, therefore, point out that in 2024 there is already a regulation for the entire EU.

[tabas]

~snip~
So, basically if someone has sold bitcoin or other crypto and holds it for more than a year in a stable coin and later on converts into fiat. That can exempt him in that 28%, right?

In principle, it should be like that, unless the legislator specifies otherwise. In essence, it doesn't matter to them if you sold Bitcoin or any other cryptocurrency a year after you bought it. It is crucial to prove when you bought something and when you convert to fiat.

I guess that their basis is if or when any sort of crypto to them will only be sold if it's converted into fiat. I hope they make clarity with that.

So, basically if someone has sold bitcoin or other crypto and holds it for more than a year in a stable coin and later on converts into fiat. That can exempt him in that 28%, right?

Despite these rules not yet completely closed. What can be understood is that if the user keeps the crypto asset (currency or NFT), for more than one year after the purchase, it is not taxed.

The information is still not clear enough, if this is valid in the exchange between currencies or even if it is for a stablecoin. As of this writing, it is valid for all cryptoassets, which includes everything.

In theory, that assumption is right so even if bitcoin or any other crypto has been exchanged into a stable coin. That's still crypto and that makes it exempted into taxation in Portugal if somebody holds that for a year and a couple of days. There's still a need for them to clarify and specific such as things like this. But all in all, this is a very good news for the residents there.

[NeuroticFish]

Probably at the beginning of next year we will have news regarding the regulation by the EU. Perhaps this issue of war has delayed legislation by the European Union a little. The last news I saw about it, therefore, point out that in 2024 there is already a regulation for the entire EU.

With Portugal and also Germany having the rule that crypto held for more than one year is not taxed, I can hope that this could become the main rule over EU.
Or am I hoping for too much?

However, these regulations just happen very slow, with or without the war. This is how politics go, I expect a lot of negotiations happen also behind closed doors. Some want evolution, some want more taxes, ....

[Rikafip]

I think the gov should give waver to them for they help themselves and the country - I am impressed the way Nigeria and Philippines has worked on the crypto - they have helped the locals and locals have helped bringing the revenus to the country

Nigeria government helped locals when it comes to bitcoin adoption? If anything, they made it harder for people to use bitcoin,but adoption there happened despite their efforts, not because of them. Regarding Philippines, situation there ain't perfect either as they have no tax up to $4500, and after that its 35%.

The information is still not clear enough, if this is valid in the exchange between currencies or even if it is for a stablecoin. As of this writing, it is valid for all cryptoassets, which includes everything.

Stablecoins are cryptocurrencies, so it shouldn't matter whether its BTC, ETH, USDT or DOGE.


Overall, not a bad deal for Portuguese crypto hodlers, but I think my country is even more hodling friendly as at the moment we pay only 10% tax (+surtax) and  we don't have to pay tax at all if we hodl for two years.

[joker_josue]

Stablecoins are cryptocurrencies, so it shouldn't matter whether its BTC, ETH, USDT or DOGE.

Yes, that's right. I only said that because the EU is planning to create a different "category" for stablecoins. But for now in Portugal, everything is in the same category.