3 - 5 minute read
The Spanish Tax Administration Agency (AEAT) is set to increase its efforts in collecting taxes from holders of cryptocurrency assets. According to the local newspaper El Mundo, the AEAT intends to send over 328,000 warning notices this year to individuals who failed to pay their taxes on cryptocurrency gains for the 2022 fiscal year. This represents a 40% increase in the number of warnings sent, as compared to the previous year, which saw 150,000 notices dispatched. However, the fiscal authorities appear to have only taken the matter seriously recently, with just 15,000 notifications sent in 2021.
While cryptocurrency assets have been a focus, other areas of tax underreporting have also drawn the attention of the fiscal authorities. In total, over 660,000 notices will be sent this year to those who have not reported their income from rentals, while 807,000 notices will be dispatched to those who have not reported their income from abroad.
Crypto traders are advised to pay attention to these warnings, which serve as a voluntary invitation to pay the tax levied on gains obtained from selling digital assets. The tax rate varies between 19% and 23%, and failure to settle tax obligations on time will result in an additional 26% fine, calculated based on the amount of unpaid funds.
According to the National Securities Market Commission’s August 2022 report, 6.8% of Spain’s population holds cryptocurrency assets. This represents a substantial section of the population, with many of them aged between 35 and 44, well-educated, and earning more than €3,000 per month ($3,300).
Spain is a country with significant crypto activity, with the country ranking first in Europe in terms of the number of crypto ATMs. It has 231 machines, roughly 15% of the total amount. In the global ranking, Spain stands fourth after the United States, Canada, and Australia.
Traders are advised to take note of the increased efforts by the Spanish authorities to collect taxes from crypto holders. Failure to settle taxes on time will incur a sizeable fine, and individuals who have not yet paid their taxes may soon receive a warning notice from the tax authorities. The high number of notices serves as evidence of the focus the Spanish authorities are placing on collecting taxes from crypto assets, signaling a potentially significant impact on the crypto market in the region. Traders should take this into consideration when making future market moves.
The Bottom Line
The Spanish Tax Administration Agency (AEAT) plans to send over 328,000 warning notices to crypto holders this year, representing a 40% increase from the previous year. Traders are advised to pay attention to their tax obligations and take the warnings seriously, as failure to do so will result in a substantial fine. The increased focus of authorities in Spain in collecting taxes from cryptocurrency assets could have a significant impact on future market moves.