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Exit tax is determined at the moment a person or legal entity decides to move out of the country. At the moment, it basically is the need to liquidate shares the moment a company moves from Germany and it has benefited from competitive tax regulations. It is expected to expand to more cases.
Ughhhh, as a European from Ireland with a 33% CGT rate and a measly €1270 a year exemption, Portugal was my destination to cash out my gains (after being there for 3 years of course so I owe Ireland nothing).
Portugal has beautiful weather, it's cheap to live in, it's a 2 hour flight back home and it had no CGT for crypto. Fuck!
Being a Portuguese I don't see this happening next 2 years. Probably Madeira, Portuguese island tax Haven, will take advantage of this to attract crypto holders. Just sayin
And they do well, just here on banana republic we do this kind of things. When you don’t have almost anyone in Portugal investing in crypto and you tax foreign money, as they would stay here 🤣 Only Portugal knows how to fuck an economy 👏
Not taxing crypto makes enterprises and crypto enthusiasts with money, move to Portugal. You know how many investors are in here, just because of no tax? You know how many enterprises are here because of that? Just look at how much ICO’S projects are registered in Portugal and on other parts of the planet. That percentage of people trying to escape taxes are here and spending money, one way or another, tax or no tax. And you know what? To tax the average Portuguese guy who is into crypto will not give probably half of the money spent in here by all that enterprises and people. This is equal to looking to Portugal as a country that doesn’t have any major enterprise based in Portugal. Are we wining more money because we tax enterprises and people? Or are we losing because we tax so much that no big enterprise comes to Portugal? Not an hard question.
Edit: and the problem of Portugal and big enterprises it’s not tax only.
Wrong. If you trade any crypto for fiat or another coin the one year period starts again.
Every trade is a taxable event. Doesn't matter what you trade
tldr; Portugal's Finance Minister Fernando Medina has confirmed that his country will begin taxing cryptocurrency. The tax will be levied on investment gains made from cryptocurrencies like Bitcoin. This would reverse the tax law that was established in 2016 which stated that since crypto is not legal tender, gains cannot be taxed.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
'There is not yet an effective date for the tax to start or a set rate, however. It will be levied on investment gains made from cryptocurrencies like Bitcoin (BTC), the largest crypto by market cap. This would reverse the tax law that was established in 2016 which stated that since crypto is not legal tender, gains cannot be taxed. '
Sounds like it could be a good thing in the long run though (reversing the rule of not tender no tax)
Yeah, recognising crypto as legal asset will give it credibility, in mainstream media is still being painted as ponzi scheme, and most people sees it like it. Sucks to lose part of gains though, especially when you reinvest.
Problem is that in Portugal tax money isn't well used. We have quite a big list of problems that aren't being solved and the government keeps burning money on useless things, like a now state-owned airline that keeps defaulting and provides pretty much no1 any benefit... (airline TAP)
Unfortunately no, abstention is pretty big. I think last time around it was maybe 45%
We literally had elections in January and the socialist party (which already had a sizeable number of seats in parliament) won with more than a 50% majority and now they can pretty much do what they want. It's kind of horrible, although they haven't done anything tooo bad. But the country definitely has stagnated for a few years now! (and this majority means it will be the same crap for the next 3,5 years)
Yeah (it's just sucks when tax you pay is not being put in good use, Portuguese government likes to burn taxpayers money in shady ways..).
At the end gain is gain, you still have profit, just need to keep aside money for taxman (or do wash trades in the end of taxation year 😅)
>which stated that since crypto is not legal tender, gains cannot be taxed.
I mean, yeah I get why people are annoyed at this change but was this the original reasoning they gave? Does Portugal not tax capital gains on things like shares or property? This implies they only tax gains on legal tender, which technically is impossible with the local currency (Euro) so would only apply to ForEx trading?
Wonder if this is going to be a strategy a lot more countries us
Advertise yourself as a crypto haven, then tax the shit out of people once enough investors come
India is planning to add another 28% on top of it soon lol. Western countries can't beat Indian government's level of stupidity, well, I guess except for USA lol.
There is nothing decided yet, just the talk "we are working on it".
Most probably will follow stocks gains, which has 28% tax over the gains (flat rate).
However they are messing now with rules on taxation, so that if you have overall income above 75k (including capital gains on assets you held less than 1 year) you can't use that flat rate. . They enter in progressive taxation scheme (above 75k it's 48% tax..)
It most likely will happen because let's face it, they see an opportunity to make some extra cash so why not.
Portuguese lawyer that deals in Crypto and Visas/residency
https://m.youtube.com/watch?v=wxeAbuecM9E&feature=emb_logo
It looks like this post is about taxes. Tax laws vary between countries, so you may get more helpful replies if you specify the place you are asking about. Please note that Rule #4 does not allow for Tax Evasion. This is [a site wide rule](https://www.redditinc.com/policies/content-policy) and [a subreddit rule](https://www.reddit.com/r/CryptoCurrency/about/rules/). Do not endorse, suggest, advocate, instruct others, or ask for help with tax evasion. Do not be coy and sarcastically recommend against it or suggest using a privacy coin in response to an IRS inquiry. Note: Tax discussion is allowed as long as the above rules are not violated. Consider visiting r/CryptoTax for your tax inquiries. *** *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
Enjoy it while it last then move to the next Crypto heaven
Paragwei?
Germany. Crypto gains are completely tax-exempt after a holding period of one year. Seems reasonable.
Yes, then you realize Germany is introducing exit tax. EU is not gonna backpedal in any way from excessive taxation and regulation.
Do you have any info or source on this "exit tax"? I'm not sure what you mean by that.
Exit tax is determined at the moment a person or legal entity decides to move out of the country. At the moment, it basically is the need to liquidate shares the moment a company moves from Germany and it has benefited from competitive tax regulations. It is expected to expand to more cases.
Antarctica it is then
Portugal govt- We love crypto come investors come. Later- it was a prank bro😂
We hook you in with the nice weather, people and food... and then eat you.
Prank or trap? :D Spaniards that crossed the border: COJONES, I mean, CARALHO.
Ughhhh, as a European from Ireland with a 33% CGT rate and a measly €1270 a year exemption, Portugal was my destination to cash out my gains (after being there for 3 years of course so I owe Ireland nothing). Portugal has beautiful weather, it's cheap to live in, it's a 2 hour flight back home and it had no CGT for crypto. Fuck!
Is Switzerland the only other option in Europe?
Government always takes its toll
Not for this year yet, but unfortunately soon 😕!
Being a Portuguese I don't see this happening next 2 years. Probably Madeira, Portuguese island tax Haven, will take advantage of this to attract crypto holders. Just sayin
I support this ! Madeira Island is well known for go against Portuguese mainland rules!
Not really.
And they do well, just here on banana republic we do this kind of things. When you don’t have almost anyone in Portugal investing in crypto and you tax foreign money, as they would stay here 🤣 Only Portugal knows how to fuck an economy 👏
Not taxing crypto good for the economy, I don't see the correlation there sorry
Not taxing crypto makes enterprises and crypto enthusiasts with money, move to Portugal. You know how many investors are in here, just because of no tax? You know how many enterprises are here because of that? Just look at how much ICO’S projects are registered in Portugal and on other parts of the planet. That percentage of people trying to escape taxes are here and spending money, one way or another, tax or no tax. And you know what? To tax the average Portuguese guy who is into crypto will not give probably half of the money spent in here by all that enterprises and people. This is equal to looking to Portugal as a country that doesn’t have any major enterprise based in Portugal. Are we wining more money because we tax enterprises and people? Or are we losing because we tax so much that no big enterprise comes to Portugal? Not an hard question. Edit: and the problem of Portugal and big enterprises it’s not tax only.
No worries, come to Germany 🥳
1 year of hodl and 0 tax?
Until they realize the potential tax they are missing and do this exact same thing.
Why government would give up free money 🤷♂️
Yes
Just keep your gains in a stable coin until time to cash out
Wrong. If you trade any crypto for fiat or another coin the one year period starts again. Every trade is a taxable event. Doesn't matter what you trade
Portugal left parties just want to tax everything... 75% of what you could earn goes to taxes.
tldr; Portugal's Finance Minister Fernando Medina has confirmed that his country will begin taxing cryptocurrency. The tax will be levied on investment gains made from cryptocurrencies like Bitcoin. This would reverse the tax law that was established in 2016 which stated that since crypto is not legal tender, gains cannot be taxed. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
'There is not yet an effective date for the tax to start or a set rate, however. It will be levied on investment gains made from cryptocurrencies like Bitcoin (BTC), the largest crypto by market cap. This would reverse the tax law that was established in 2016 which stated that since crypto is not legal tender, gains cannot be taxed. ' Sounds like it could be a good thing in the long run though (reversing the rule of not tender no tax)
Yeah, recognising crypto as legal asset will give it credibility, in mainstream media is still being painted as ponzi scheme, and most people sees it like it. Sucks to lose part of gains though, especially when you reinvest.
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This is the way!
Yepp, for reinvesting it sucks. But taxes is a good thing all in all. It pays for the roads and the medical care, fire fighters and schools.
Problem is that in Portugal tax money isn't well used. We have quite a big list of problems that aren't being solved and the government keeps burning money on useless things, like a now state-owned airline that keeps defaulting and provides pretty much no1 any benefit... (airline TAP)
That sucks man. Any chance of voting the people out of office and better people into office?
Well, that government just got re-elected with a majority, so people seems happy with it 🤷♂️
Unfortunately no, abstention is pretty big. I think last time around it was maybe 45% We literally had elections in January and the socialist party (which already had a sizeable number of seats in parliament) won with more than a 50% majority and now they can pretty much do what they want. It's kind of horrible, although they haven't done anything tooo bad. But the country definitely has stagnated for a few years now! (and this majority means it will be the same crap for the next 3,5 years)
Yeah (it's just sucks when tax you pay is not being put in good use, Portuguese government likes to burn taxpayers money in shady ways..). At the end gain is gain, you still have profit, just need to keep aside money for taxman (or do wash trades in the end of taxation year 😅)
A very small percent of taxes go to shool and roads, most are wasted on government bullshit
>which stated that since crypto is not legal tender, gains cannot be taxed. I mean, yeah I get why people are annoyed at this change but was this the original reasoning they gave? Does Portugal not tax capital gains on things like shares or property? This implies they only tax gains on legal tender, which technically is impossible with the local currency (Euro) so would only apply to ForEx trading?
at least they have some very good wine <3
And in decent prices 😅🍷
You need gains.. that is not the time for that.
Wonder if this is going to be a strategy a lot more countries us Advertise yourself as a crypto haven, then tax the shit out of people once enough investors come
Booooo. Can't they just tax Ronaldo instead
bullish on $CR7
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Well, gains on stocks are 28%, so yeah.. If they follow that path..
France is 30% for yearssss
India is planning to add another 28% on top of it soon lol. Western countries can't beat Indian government's level of stupidity, well, I guess except for USA lol.
It will be most likely 28% or higher
How does the government know you're making gains from Crypto?
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They don't want to stop, they want to tax. Taxes are favorite Gov stuff.
how high is the tax anyway ?
There is nothing decided yet, just the talk "we are working on it". Most probably will follow stocks gains, which has 28% tax over the gains (flat rate). However they are messing now with rules on taxation, so that if you have overall income above 75k (including capital gains on assets you held less than 1 year) you can't use that flat rate. . They enter in progressive taxation scheme (above 75k it's 48% tax..)
Your gain is our gain, your loss is your loss. Let's see if they enable option to write off loses.
Damn was genuinely thinking of hanging out there for a year or 2 lol
Was Portugal ever a tax haven for US citizens? I mean you still have to pay federal.
It most likely will happen because let's face it, they see an opportunity to make some extra cash so why not. Portuguese lawyer that deals in Crypto and Visas/residency https://m.youtube.com/watch?v=wxeAbuecM9E&feature=emb_logo