Spanish Tax Agency Cracks Down On Crypto Holders with 328K Notices
- Spanish tax agency increases efforts to charge crypto holders; 328K warning notices to be dispatched for unpaid taxes in 2022.
- 6.8% of Spain’s population holds crypto assets, majority aged 35-44, with higher education and monthly earnings over €3,000.
- Fines up to 26% for those who fail to pay taxes on gains from selling digital assets in time.
The State Tax Administration Agency of the Government of Spanish (AEAT) is increasing its efforts to ensure that local holders of cryptocurrencies pay their taxes.
Specifically, the AEAT intends to dispatch 328,000 warning notices to those who should pay their taxes on crypto for the 2022 fiscal year. This is a significant increase from the 150,000 warnings issued in 2021, representing a year-on-year increase of 40%. The fiscal authorities have taken the matter seriously only recently, as there were only 15,000 notifications altogether in 2021.
It is worth noting that the AEAT’s efforts are not solely focused on crypto. For instance, more than 660,000 notices will be sent this year to those who underreported their rental income, and 807,000 for income obtained abroad.
The notices sent by the AEAT represent a voluntary invitation to pay the tax, which varies between 19% and 23% for gains obtained by selling digital assets. Those who do not pay their taxes on time will be subject to an additional 26% fine, calculated from the number of unpaid funds.
According to a report by the National Securities Market Commission (CNMV) in August, 6.8% of Spain’s population holds crypto assets. The majority of these individuals are aged between 35 and 44, have higher education, and earn over 3,000 euros (around $3,300) monthly. Given the increasing popularity of cryptocurrencies in Spain, it is unsurprising that the country holds the first spot in Europe by the number of crypto ATMs, with 231 machines. This represents roughly 15% of the total number of machines in Europe. Globally, the country stands at the fourth spot after the United States, Canada, and Australia.
The AEAT’s efforts to ensure that local holders of cryptocurrencies pay their taxes are increasing. It is also interesting to note that the popularity of cryptocurrencies is growing in Spain, as evidenced by the increasing number of crypto ATMs and the percentage of the population that holds crypto assets.
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