<p>Portugal was previously considered <a href="https://www.cnbc.com/amp/2022/02/06/bitcoin-family-moves-to-portugal-crypto-tax-haven.html">a tax haven</a> for cryptocurrency investors, in part due to an effective capital gains rate of zero.</p><p>"There is no specific law, it is just a lack of regulation that led to the zero taxation in Portugal," said Duarte. "This together with an understanding published by the Portuguese tax authority in 2016 meant that only crypto-related businesses can be taxed."</p>

<p>The current capital gains tax rate for financial investment in Portugal is 28%.</p><p>Portugal's changed stance on taxes brings the country in line with many other nations around the globe. Among them are Australia – where <a href="https://www.coindesk.com/business/2022/05/16/australian-tax-office-warns-crypto-investors-on-capital-gains-obligations/">earlier Monday </a>that country's tax office warned investors of the need to report capital gains and losses on crypto each year – the United Kingdom and the U.S.</p>

<h2>Reversing its previous hands-off stance, the nation will impose taxes on the exchange and sale of cryptocurrencies.</h2><div><span>May 16, 2022 at 4:24 p.m. UTC</span></div><div><span dir="ltr">Updated May 17, 2022 at 6:42 p.m. UTC</span></div><figure><img src="https://cloudfront-us-east-1.images.arcpublishing.com/coindesk/34R3CWF4URGW5EI2AX7QAQWINQ.jpg" height="490" alt="CoinDesk - Unknown" width="737"><figcaption dir="auto">Portugal has made a U-turn on taxing cryptocurrency. (aayush_gupta/Unsplash)</figcaption></figure>

Reversing its previous hands-off stance, the nation will impose taxes on the exchange and sale of cryptocurrencies.

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Portugal Makes U-Turn on Cryptocurrency Tax

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