Two crypto tax measures have been rejected by Portugal’s Assembleia da Republica.

The Portuguese Minister of Finance has stated that cryptocurrencies will be subject to capital gains taxes in the near future.

The Assembleia do Republica, the Portuguese parliament, has rejected two legislation that would have placed a tax on cryptocurrencies.

Portugal has long been known as a bitcoin tax haven, and cryptocurrency trade has been tax-free in the country since 2018. Furthermore, in Portugal, trading digital assets is not considered investment income. Despite the fact that companies who take Bitcoin must pay income tax on it, this has drawn crypto startups and events to Lisbon.

The Portuguese Minister of Finance, Fernando Medina, has stated that cryptocurrencies will be subject to capital gains taxes in the near future. The Portuguese Assembleia do Republica, on the other hand, rejected two different measures from small political parties to tax bitcoin holdings.

Derek ‘Isaac’ Kaplan, creator of DuoVerse and VMining, praised the news, saying that any “unreasonable taxes” would have hampered the cryptocurrency industry’s growth.

The ideas came from the left-wing parties Bloco de Esquerda and Livre, according to the economic journal ECO, and both were rejected at a 2022 budget voting session on Wednesday afternoon. The government has been requested to look at taxing cryptocurrency revenues exceeding 5,000 ($5,345.75).

Crypto transactions in Portugal are exempt from capital gains and other taxes. For financial investments, the current capital gains tax rate is 28 percent.

During the same session of parliament, the country’s deputy finance and tax minister, Antonio Mendes, remarked that taxing cryptocurrencies is a “difficult reality,” and that capital gains may not be enough.

As we previously reported, one emigrant to Portugal complimented the western Iberian country’s crypto acceptance rate among retailers and even suggested that Bitcoin would one day become legal tender there. However, now that government authorities are debating how to tax digital assets, he may have a lot on his mind.