jakiro
Source: TAXDAO
1. Introduction
In the hearts of digital nomads and companies seeking light tax burden, Portugal is an ideal destination in Europe.In European countries, Portugal was one of the countries that provided preferential tax systems for encrypted assets. However, with the update of tax policies in 2023, Portugal also ended the state of relatively tax -free in terms of encrypted asset transactions.EssenceAccording to the Portuguese personal income tax law, the income of encrypted assets can be divided into three categories: capital (E), capital income (G type) or self -operated occupational income (Class B), and apply different tax systems according to different income.This article will analyze the tax and regulatory system of Portugal in detail.
2. Overview of Portuguese basic tax system
2.1 Portuguese taxation system
The Portuguese tax system is composed of personal income tax, corporate income tax, VAT, etc. Social Security Fund is also a part of the Portuguese tax system.There are 7 categories of taxes in Portugal, namely: corporate income tax, personal income tax, value -added tax, real estate transaction tax, real estate tax, stamp tax and other taxes.
2.2 Main tax types
2.2.1 Enterprise income tax
Enterprises engaged in business, industry or agricultural business activities and registered in Portugal shall pay corporate income tax to the Portuguese tax department.The income tax rate for large enterprises (over 50 million euros) is 21%; the tax rate of the income part of small and medium -sized enterprises below 15,000 euros is 17%, and the tax rate of more than 15,000 euros is 21%.Since 2019, on the basis of the current additional tax rate, the annual profit of the enterprise is 1.5 million to 7.5 million euros, 7.5 million to 35 million euros, and the parts of more than 35 million euros, respectively, 3%, 5%and 9, respectively.%Of the national surcharge.
2.2.2 Personal income tax
Portuguese residents’ personal income tax taxes include all domestic and overseas personal income, with a taxation ratio of 14.5%to 48%; non -Portuguese residents only use the income obtained in Portugal as the tax base, and the unified taxation ratio is 25%.Personal income includes: salary, business operation or providing service income, capital income, rental income, investment income, pension (tax exemption below 4104 euros), director gold, etc.Personal income tax is paid by gradient ratio according to the sum of annual income.
2.2.3 VAT tax
VAT is a tax that Portugal started to levy after joining the European community in 1986.All goods and service transactions in Portugal, as well as goods imported from other EU, need to pay VAT.VAT of Portugal uses three types of tax rates: general tax rates, preferential tax rates, and the highest preferential tax rates.The general tax rate for mainland Portugal is 23%, the preferential tax rate is 13%, and the best tax rate is 6%.The Madera Autonomous Region is 22%, 12%and 5%, respectively.The Acel Islands Autonomous Region is 16%, 9%and 4%, respectively.
2.2.4 Real estate transaction tax
All real estate and real estate in Portugal need to pay real estate transaction tax when buying and selling, and the tax collection base is higher than those with higher real estate transaction prices or real estate registration registration prices.Rural real estate has a transaction tax of 5%of the transaction price.The real estate located in the town, the transaction tax rate is different according to the high and low transaction price: the real estate trading contract is free of transaction tax for the real estate transaction tax below 92407 euros; the 2%to 8%floating tax rate is used between 92407 and 574323; more than 574323 euros, real estateThe transaction tax rate is fixed to 6%.The real estate transaction tax is paid by the housing buyer. Generally, the payment of the house payment at the same time or the first working day after the payment is paid. The real estate transaction performed abroad must complete the tax within the next month after real estate transaction.
2.2.5 printing duty
The stamp duty is a tax levied by various contracts, property transfer documents, business books, books, etc. signed in economic activities.There are two ways to levy stamp duty in Portugal: one is a fixed tax rate, such as checks, business books, will, real estate registration, etc., ranging from 5 points to 25 euros; the other isStamp duty, the tax rate ranges from 0.04%-10%. Such contracts include real estate trading, donations, insurance letters, mortgages, insurance policies, etc.
3. Portuguese encryption tax policy
3.1 The qualitative of encrypted assets
In Portugal, crypto assets do not have a status of legal currency, not classified as legal currencies, nor is it regarded as “currency” or “electronic currency”.However, the 2019 statement of the European Bank of China (EBA) pointed out that according to instructions 2009/110/EC (EMD2) [1], encrypted assets can be regarded as “electronic currency” under limited circumstances.The definition of encrypted assets in the EU’s “Regulations on the Supervision of Crypto Assets Market” (MICA) is expressed as “any number that can be transferred or stored by electronic transfer or storage by electronic transfers or storage”, which does not include a single plus enhancement in electronic formulas or similar technologies. “Assets and non -quality crypto assets.The encrypted assets are largely regarded as a replacement payment method to a large extent. It is essentially contractual. It is the result of the private agreement between the participants of crypto asset transactions.: Value storage, metering unit, trading medium.
As far as personal income tax is concerned, according to the Portuguese “Personal Income Tax Code” (Código Do Imposto Sobre O RENDIMENTO DAS PESSOAS SINGALARARES (CIRS), the income of the disposal of crypto assets should be regarded as capital gains. The standard tax rate of 28%will be applied to the above.The capital income generated by assets, unless these assets hold for more than 365 days, will obtain exemptions (but not applicable to encrypted assets categorized as securities) in this case.
3.2 Crypto asset tax system
Portugal’s “Personal Income Tax Code” was revised in 2023 to include encrypted assets into the scope of taxation.28%of the Capital Equipment Tax (CGT), which holds short -term holdings (holding less than one year).Long -term holding assets (more than one year) is tax -free.In addition, intangible homogeneity (NFT) is excluded from taxation and enjoy tax exemption.Portugal implements a progressive tax system, ranging from 14.5%to 53%, depending on the income category.According to the revised content, the income of encrypted assets is classified into the following three types: capital (C type), capital income (G type) or self -employed occupational income (Class B).
(1) Capital income: PIT category E
Class E refers to taxation on capital income.For encrypted assets, taxes are mainly suitable for passive income, such as investment income.In addition, the physical encrypted payment (such as paying products or services with encrypted assets) should also be taxed accordingly.
(2) Capital gain income: PIT category G
Class G refers to the income obtained by buying and selling encrypted assets, which is suitable for the capital income obtained by the sale of encrypted assets after less than 365 days.If the holding time is more than 365 days, the capital gains obtained by selling will be tax -free (still need to be reported).Holding the sales of crypto assets with less than 365 days, and a unified tax rate of 28%.However, investors can also choose to count these income into general taxable income, and then levy tax rates based on the total income at 14.5%to 53%.But there are exceptions: some encrypted assets are considered securities, no matter how the holding period needs to be taxed.
(3) Self -employment income: PIT category B
The income from crypto asset distribution (such as mining or verification encryption transactions) belongs to Class B.These income levy tax rates from 14.5%to 53%.For professional traders, cryptocurrency profits can generally be regarded as self -employed occupational income and taxed accordingly.
The main characteristics of the tax system include: 1. Personal investors do not need to afford capital gains tax as long as they do not engage in professional activities related to encrypted assets and hold for more than 365 days.This means that income for personal investment and selling crypto assets is usually not affected by taxation.2. If these transactions are not commercial activities, it is not applicable to encrypted asset transactions.3. Taxation of professional activities: The income of activities related to professional or entrepreneurial activities may be taxed in accordance with the general provisions of the income tax.
4. The construction and improvement of the Portuguese encryption supervision framework
The Portuguese Securities Market Committee (CMVM) and Banco de Portugal are the main regulatory agencies, responsible for supervising virtual asset exchange, storage services, and preventing money laundering and terrorist financing.
The Portuguese regulatory agency has formulated relevant regulations to classify the encrypted asset exchange as a system of operation license system for the Central Bank.CMVM is responsible for directly supervising the “token” asset market, that is, the number of stocks or bonds is represented by the encrypted assets in the decentralized database.As the main law enforcement agencies of anti -money laundering (AML) and anti -terrorism financing (CFT), the Portuguese Bank has implemented strict supervision on the crypto asset exchange.In 2022, the European Parliament Economic and Monetary Affairs Commission approved the provisions of the Crypto Asset Market Law (MICA) and will be submitted to the European Parliament and EU member states to vote.MICA’s regulations shall take effect by the end of 2024, and aims to provide legal clarity to prevent the abuse of crypto assets, and encourage the development of crypto asset innovation.At present, there are certain restrictions in MICA, such as it does not include decentralized finance (DEFI) and non -homogenized Tonglin (NFT).
In terms of compliance requirements, digital asset exchanges operated by Portugal must be registered in Portuguese banks to ensure that they meet legal standards and improve market transparency.Portugal’s encrypted asset business needs to comply with the AML/CFT rules that meet the EU instructions, including the certification, verification, credibility and reliability assessment of customers.In addition, the encrypted asset service provider (CASPS) engaged in the following activities needs to obtain an encrypted asset license: exchanged encrypted assets to another type of encrypted assets or legal currency, and vice versa; provide convenient encrypted asset address or encrypted asset walletTransfer services; provide and maintain encrypted asset wallets.The application time is usually five months.
5. Summary and outlook
The Portuguese government’s attitude towards encryption assets is relatively open. It has adopted a balanced strategy in terms of taxation and supervision of encrypted assets to protect investors’ interests, prevent illegal financial activities, and promote the healthy development of the market.With the continuous popularization and adoption of crypto assets worldwide, Portugal’s crypto asset market is also booming.108 companies in Portugal have accepted encrypted assets, showing the market’s friendly attitude towards encrypted assets.In 2023, Portugal incorporated encrypted assets into the scope of taxation. It was concluded that it was previously considered to be the “tax -free” area of encrypted assets. The short -term capital gains tax was as high as 28%.More long -term investment, thereby promoting the stable development of the market.Regarding MICA’s regulations, one of the important changes is to emphasize environmental responsibility, which requires that crypto asset companies have the responsibility to reduce the high carbon emissions of crypto assets.Important crypto asset service providers need to publish energy consumption on their websites and share this information with the national authorities.Another change is the supervision of stablecoin, which is responsible for the European Banking Authority (EBA).For stable currency issuers operating in the European Union, they are required to establish sufficient reserves, and the reserve ratio is 1: 1, and partly exists in the form of deposits.These reserves ensure that all stable currency holders can make claims to the issuer at any time and freely.
With the continuous evolution of the global crypto asset market, Portugal may continue to adjust its tax and regulatory policies to adapt to new market conditions and international standards.
Reference
[1]. Portuguese budget in Portugal in 20123: The end of the crypto gold country?(2024) TaxDao.
[2] .Crypto Taxes in Portugal 2024: Your Complete Guide for Hassle-Free Compliance. Https://mcs.pt/crypto-taxes-portugal-2024/
[3] .https://www.internationaltaxreview.com/article/2b3n19bqkr4qdpq7jdm2o/sponSored/2023-Portuguese-State-Budget-EF-CRYPTO-DORADO
[4] .https: //eur- lex.europa.eu/legal-entent/txt/? Uri = Celex: 32009L0110
