Portugal will close a legal loophole to start taxing cryptocurrencies, says its finance minister

Portugal intends to close a legal loophole that currently prevents the taxation of virtual assets and has made the country particularly attractive to cryptocurrency investors.

"The government intends to legislate on this matter, we are not going to maintain this vacuum," Fernando Medina said at a press conference in Lisbon.

The government wants to present "as soon as possible" a new legal framework that ensures a balance between tax "fairness" and the country's international "competitiveness," Medina added.

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Portugal is currently one of the few countries in Europe where cryptocurrency transactions are not subject to taxation because they are not considered currencies or financial assets, according to a notice issued by the Portuguese tax authorities in 2016 which is still in force.

Individuals do not have to pay VAT or capital gains taxes on their purchases and sales of crypto assets, and only professional activities paid in crypto are tax

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