Governments Increasing Crypto Taxation Amid Revenue Needs
- Brazil implemented a flat 17.5% tax on all capital gains from digital assets in June.
- Portugal introduced a 28% tax on crypto gains held for less than a year, reversing its previous tax-free stance.
- Germany currently exempts crypto gains from capital gains tax if held for more than one year, with up to 600 euros ($686) remaining tax-free for shorter holdings.
- The UK reduced its capital gains tax-free allowance from 6,000 pounds to 3,000 pounds, affecting all assets including crypto.
- Recent data indicates that 12% of UK adults now hold cryptocurrency.
As governments face budget pressures, they are increasingly targeting cryptocurrency for taxation, reflecting a global trend towards stricter regulations in this sector. The changes in Brazil and Portugal highlight the shift from lenient policies to more aggressive taxation strategies.
With Brazil’s new 17.5% tax impacting small traders significantly, the landscape for retail investors is changing rapidly as low-tax environments may soon become a thing of the past.
