Spanish Tax Agency Cracks Down on Crypto Holders

The Spanish Tax Administration Agency (AEAT) wants to send out 328,000 warning notifications to individuals who are responsible for paying their taxes for the 2022 fiscal year. This move is being made in an attempt to collect taxes on crypto assets. The number of notices has climbed by forty percent in comparison to the previous year, reaching a total of fifteen thousand in 2021. This rise is a clear indication that the monetary authorities are beginning to take the matter more seriously.

The efforts of the AEAT to collect taxes are not primarily concentrated on cryptocurrencies and related assets. This year, more than 660,000 people who underreported their rental income will get a notice, and 807,000 people who did not record their income earned outside the country will receive a notice. Both groups will receive letters. The notifications function as an offer to voluntarily pay the tax, the rate of which ranges between 19% and 23% and applies to profits realized from the sale of digital assets. Those who are late in making their tax payments will be liable to a fine of an extra 26%, which will be determined based on the total amount of money that remains due.

According to the research published by the National Securities Market Commission in August 2022, there is a rising population of crypto asset holders in Spain. According to the report, 6.8% of the country’s population now own crypto assets. The majority of these holders have at least some level of higher education, are between the ages of 35 and 44, and make more than 3,000 euros per month. The nation also has the most cryptocurrency ATMs in all of Europe, with 231 machines, which accounts for around 15% of the entire number. This places it in first place in Europe. Spain comes in at number four on the global scale, after the United States, Canada, and Australia.

The expanded efforts of the Spanish Tax Administration Agency reflect a rising pattern of governments throughout the globe striving to regulate and collect taxes on crypto assets. This trend was highlighted by the enhanced efforts of the Spanish Tax Administration Agency. This should not come as a surprise considering the expanding usage of cryptocurrencies across a wide variety of sectors, as their popularity continues to rise. Individuals and enterprises need to ensure that they are up to date on their tax duties in order to prevent the possibility of facing legal repercussions as a result of the proliferation of crypto assets.