Cryptocurrency investors in Hungary could get a big tax cut very soon, as lawmakers seek to make the Central European country more competitive after the Covid-19 pandemic.
The information comes from Finance Minister Mihály Varga who described his government's stimulus program until 2022. As part of post-Covid-19 relief efforts, lawmakers are considering reducing taxes on the cryptocurrency trade to 15% of revenue , below the current rate of 30.5%. Which would make Hungary a much more competitive jurisdiction when it comes to capital gains taxes on cryptocurrencies.
Hungary, like other nations, was hit hard by the Covid-19 pandemic. At one point, the central European country had the worst Covid-19 mortality rate in the world.
At a time when the country is preparing to enter a new phase with economic recovery and reduction of restrictive measures, the reduction of taxes on capital gains in cryptocurrencies goes against the choices of most other European states that intend raise taxes. There is no doubt that if it works as planned, more countries will follow suit.