Hungary’s economy minister Mihály Varga announced Tuesday that the tax on cryptocurrency earnings would be slashed to 15 percent in 2022, which is roughly half of the current rate of 30.5 percent. The move is expected to attract billions of Hungarian forints to the country’s budget.
VanEck’s Gabor Gurbacs has commented that Hungary is shaping up to be “the Wyoming of Europe,” comparing it to the most crypto-friendly U.S. state.
The country has also decreased the 17.5 percent social contribution tax to 15 percent as it is attempting to get its pandemic-ravaged economy back on its feet.
Hungary is not the only EU country that has introduced tax incentives for cryptocurrency owners. For instance, Portugal doesn’t require crypto holders to pay any taxes at all unless they engage in professional trading.