Portugal will be "hodling friendly"

[DudeAtWork420]

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/

India have done something similar when indian finance minister nimala sitaram announce 30% tax on all crypto gains. Community shows mixed reaction about it some says its good at least they recognizing crypto as something legal. Though they introduced crypto as a assets class not currency and these days indian central bank released a grand notice about digital INR.

[Poker Player]

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.

It was clear. Almost nobody likes to pay taxes, and if they are in favor of certain taxes being levied, what they really want is for them to be levied on "the rich" which happens to always be people who get paid more than they do, even if they get $100k a year or more.

If all those in favor of 0% tax  vote for politicians who raise taxes on them I expect them not to complain.

[Lucius]

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.

Regarding tax on crypto profits, our country is really one of the few that has very favorable laws, but on the other hand, there is also a law that says that other income from abroad is taxed at a rate of about 30% (I'm not sure) and what is even more stupid is that you have to report the tax after every payment, which in the case of a signature campaign means going to the tax office every week and filling out the paperwork.

On the other hand, I would have no problem paying profit tax even if it were twice as much, I just feel very bad when I know where the money goes - and it goes into the private pockets of politicians and their eligible staff in public companies.

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?

I would say that the hopes are too high, because our bureaucrats cannot agree on almost anything, not even on whether or not summer/winter time should be abolished. Maybe it's best that taxes remain something in the jurisdiction of national states, because in the end we don't all have the same VAT, and I don't think it's realistic to even expect something like that.

[Flexystar]

Dam man these are countries which are dreamy and they are letting their nationals to get visa so that they can earn happily out there. Definitely this is interestingly playful because this can motivate nationals to earn more and more money with crypto currencies.

This tax is nothing compared to what others are implementing. For example, many countries are not evening bothering to restrict the use of crypto currencies and thus people are left out of the options and can’t even use it. So it’s far better they are giving some options. <3

[Leviathan.007]

I'm still not sure about it but I guess Portugal is one of the first countries where they started to milk money from the bitcoin and cryptocurrency holders and traders, this huge amount of tax for the people who are aiming for the short term cannot be a good idea because they will have to change their plan to pay huge amount of tax to their governments, I guess the people in Portugal will start thinking about hold and aim for the long term instead of selling their assets less than one year after they buy, regardless of that I think the garments should be one involved in their desition to sell or hold.

[kryptqnick]

28% is a hefty tax, but the tax-free holding for a year or more is surprisingly great to balance it out. It's as if the policy is built to encourage long-term holding, actually. This is currently just a proposal, right? So it might not pass and might not become a part of the legislation. I also feel like perhaps this long-term zero-tax rule can come to getting abused (someone buys Bitcoin with money that wasn't taxed and just waits for a year to not have to ever pay taxes on it), I hope they thought it through.

[joker_josue]

28% is a hefty tax, but the tax-free holding for a year or more is surprisingly great to balance it out. It's as if the policy is built to encourage long-term holding, actually. This is currently just a proposal, right? So it might not pass and might not become a part of the legislation. I also feel like perhaps this long-term zero-tax rule can come to getting abused (someone buys Bitcoin with money that wasn't taxed and just waits for a year to not have to ever pay taxes on it), I hope they thought it through.

The amount of 28% is equal to the tax on stock exchange gains. In other words, for the Portuguese government it is almost in the same category as investment assets. The advantage is that coins older than 1 year no longer pay this tax.

It really is still a proposal, but it will be approved for sure, since the government has an absolute majority. What could happen is that it still undergoes some changes, but I don't think it will happen.

[SirLancelot]

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?

That is if you are patient enough to hold your cryptos for a year but there must be obstacles that can come in your way like if your personal funds have run out unexpectedly and you badly need more funds, or if the price have pumped up. I think you will still decide to sell your cryptos but if I were to choose I think I will go for this tax rule because I am sure that I will never sell my cryptos no matter what.

I am more into longer terms anyway and have some experience in the past in terms of hodling a coin. I agree with you that this is a good news more than a bad one because this will be forced others to hodl their crypto and we know what are the effects of it. Yes, it helps the price grow stably.