Tax discrimination
It is hard to justify why capital gains on shares have to pay income tax and profits from cryptocurrencies do not. The framework the Government has promised has only one fault: it comes late.
Inês is a young saver with some tolerance for risk. Although she invests part of her monthly salary in a highly diversified index fund, Inês also has a separate account where she buys and sells shares. She does it more for fun and tries never to exceed 1% of her portfolio.
In March 2020, Inês saw the markets falling and thought it was an opportunity. She paid 100 euros for a share in company X, which seemed cheap compared with the average price at the time. About a year later, Inês managed to sell the same share for 200 euros, doubling her initial investment.
AI translation from the Portuguese. First published in ECO on 19 May 2022.