Portugal is frequently referred to as an EU tax haven in media, particularly when it comes crypto. Be that as it may, it looks like that portion of Portugal’s reputation is coming to a close.

On Friday, May 13th, Portugal’s Minister of Finance Fernando Medina remarked that cryptocurrency will soon be subject to the same tax rulings as any other capital gains.

News Worldwide – Fernando Medina (new Portugal Minister for Finance) confirmed that cryptocurrencies will be subjected to taxation within the next few days.

— Gokhshtein Media (@gokhshteinmedia) May 16, 2022

You can switch (NYSE: ) The Perception of Cryptocurrency

Portugal sees cryptocurrency trading more as the transfer of money than investment. Crypto had been exempted previously from capital gains tax at 28%, which was a widely held view. To crypto investors’ delight, the resulting effective tax rate of 0% fascinated them all. This led to Lisbon being a major crypto hub.

Officially, however, Portugal has always wanted crypto regulations to be implemented. This claim was supported by the lawyers who were involved in the development of the legal framework. They refuted the common belief that Portugal has a friendly attitude to crypto. “It is an area in which there is a lot more knowledge and a lot more progress, so that Portugal can learn from international experience”, explained Medina, the Minister of Finance.

Tax regulations on crypto becoming more severe

The Australian government issued an advisory to those who have not paid taxes for transactions made with NFTs or cryptocurrencies. Recently, the UK High Court ruled NFTs were valuable property that is protected under law. Even China has acknowledged Bitcoin’s economic value. It is not surprising that countries will soon create regulations to regulate the volatile cryptocurrency sector, despite the market turmoil.

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