Portugal’s Parliament rejects crypto tax proposals amidst budget negotiations

The Portuguese Parliament voted against two separate proposals from minority political parties to tax crypto assets.

The proposals were from left-wing parties Bloco de Esquerda and Livre and were both rejected on Wednesday afternoon during a 2022 budget voting session, according to economic newspaper ECO.

Nevertheless, the days of a crypto tax-free Portugal may still be numbered.

Earlier this month, the country’s minister of finance declared his commitment to start taxing crypto, stating that the government would work on the regulatory framework, but declining to commit to any time frame.

He also argued that there shouldn’t be any “gaps” resulting in certain gains not being taxed in the country.

Livre’s proposal would see gains above €5,000 be taxed. Prior to the vote, Mariana Mortágua, a member of parliament with Bloco de Esquerda — who has been very vocal about crypto taxation — criticized the government for failing to find a way to tax crypto.

“Regardless of necessary future crypto regulations, our contribution to put an end to this offshore is to subject crypto assets to the same rate applicable to capital gains on equivalent income,” she said.