Portugal’s Tax U-Turn Further Underlines The Attractiveness Of Gibraltar As A Crypto Destination
by Liz Seyi Digital marketing managerIt might not have escaped the notice of a
significant proportion of our service users in recent days that there has been
major news on Portugal’s relationship with the crypto space.
Specifically, the southwestern European country
that has done so much in recent years to lure crypto investors with measures
such as its Golden Visa and a ‘hands-off’ approach to crypto, has indicated
that cryptocurrencies there will shortly become subject to taxation.
If, then, you are a current or would-be crypto
investor in Portugal, this development – ostensibly designed to ‘level the
playing field’ in how crypto is treated compared to other asset classes – might
give you fresh reason to look seriously at Gibraltar as the focal point of your
own activities in this space.
What did Portugal say about the prospects
of it taxing cryptocurrencies?
It was the Portuguese finance minister, Fernando
Medina, who signalled in recent comments to the country’s parliament that
changes were afoot to the government’s approach to crypto.
The minister was quoted as saying, by CoinDesk
and other sources, that “many countries already have systems, many
countries are building their models in relation to this subject [the taxation
of crypto] and we will build our own.”
An associated partner at a Lisbon law firm,
Susana Duarte, said that the Portuguese government had indicated it would
proceed with taxing crypto, with the new policy set to include a capital gains
tax. However, she added that the government had not yet made clear how staking
or yield farming might be impacted.
The implications of Portugal’s shift in
policy for you
There is much in Portugal’s revised policy
towards crypto that we are yet to know, including exactly when such a tax will
be implemented. However, even just the shift in tone from the country’s
government might lead you to consider the legal, regulatory and tax stability
that Gibraltar offers for cryptocurrency investors.
There’s no doubt about it; crypto is a
fast-evolving space, with much uncertainty presently prevailing about national
authorities’ likely treatment of the industry in the months and years to
come.
Gibraltar, however, has been ‘ahead of the game’
in crypto in more than a few ways. The British Overseas Territory’s Distributed
Ledger Technology (DLT) framework was implemented way back in 2018, and various
large and highly respected crypto exchanges now hold licences from the
Gibraltar Financial Services Commission (GFSC).
As for if you are interested in achieving an AML
compliant token sale, it may interest you to know that Gibraltar has
put in place a sturdy VASP (virtual asset service provider) registration
system, which directly connects project principles with the regulator to allow
for the most stringent AML (anti-money-laundering) and KYC (know your customer)
checks.
Although token issuing entities are not yet
licensed by the regulator, the registration and approval process that is
already in place helps give peace of mind to both investors and third-party
service providers.
Note, too, that Gibraltar has a reputation as a
broadly low-taxation environment, and this very much extends to its crypto
approach. The Gibraltarian government does not impose any capital gains or
dividend tax requirements on cryptocurrencies, and the territory’s current
regulation sets out that even exchanges only need to pay a 12.5% corporate
income tax rate.
So, while there is much that might seem uncertain
and even scary about the crypto sector and how it is treated from a taxation or
regulatory perspective in various jurisdictions around the world, that is much
less the case in Gibraltar.
Why wait any longer to begin your
relationship with our experts? For a more in-depth discussion of
your needs and expectations from your looming AML
compliant token sale or whatever your other aims and ambitions might be
in crypto, please do not hesitate to get in touch with the TAG Consultancy team
today.
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Created on Jun 3rd 2022 09:31. Viewed 163 times.