Portugal, which is considered to be the most crypto-friendly country in Europe, has made a decision to tax cryptocurrency gains, according to a Monday report by Bloomberg.
Portugal has attracted plenty of digital nomads by not subjecting cryptocurrency transactions to taxation.
However, the country has now made a major U-turn by including a provision in its proposed budget that would tax gains on those cryptocurrency purchases that are held for less than a year. Cryptocurrency taxes held for a longer period of time will not be subjected to taxation.
It should be noted that the draft budget hasn’t been approved by the parliament just yet.
Portugal insists that it is now on the same page with the rest of Europe when it comes to taxing cryptocurrency gains.