João Valadas Coriel, the Managing Partner at VCA, talks about how Portugal will start taxing short-term gains on digital assets from the 1st of January 2023.
According to Portugual’s 2023 budget, profits earned from digital-asset holdings detained for less than one year will be taxed at a rate of 28%, whereas assets held for longer than a year will be exempt from taxes. Tax authorities will also account for gains from mining operations and the issuance of cryptocurrencies as taxable income.
We urge all crypto investors to get in touch with a savvy tax lawyer. You need to establish a tax file to determine how long you have held your assets, the provenance of the money invested, and ascertain the amounts and dates of investments in each class of assets, among others.