The Spanish Tax Administration Agency (AEAT) is stepping up its efforts to collect taxes from local holders of cryptocurrency, with a significant increase in warning notices for the 2022 fiscal year. According to local newspaper El Mundo, the number of notices has risen by 40% in just one year, reaching 150,000 in 2022, compared to only 15,000 in 2021. This indicates that fiscal authorities are now taking the matter of crypto taxation more seriously.
However, the AEAT’s efforts are not limited to just cryptocurrency. Over 660,000 notices are set to be sent this year for underreported rental income, and 807,000 for income earned abroad. The notices serve as a voluntary invitation to pay the tax, which ranges from 19% to 23% for gains obtained through the sale of digital assets. Failure to pay the taxes on time would result in an additional 26% fine, calculated from the amount of unpaid funds.
A recent report from the National Securities Market Commission in August 2022 reveals that 6.8% of Spain’s population holds cryptocurrency, with the majority falling in the age range of 35 to 44. These crypto holders tend to have higher education and earn a monthly income of over 3,000 euros (around $3,300). Spain also ranks first in Europe in terms of the number of cryptocurrency ATMs, with 231 machines, accounting for approximately 15% of the total global amount. This places Spain as the fourth highest globally, following the United States, Canada, and Australia.
The increased efforts by the AEAT to collect taxes on cryptocurrency holdings are part of a broader trend of governments around the world cracking down on the taxation of digital assets. As the crypto sector continues to gain traction and attract more mainstream attention, regulators are increasingly focusing on ensuring that individuals and businesses are compliant with tax laws.
The growing number of warning notices being sent by the AEAT highlights the need for crypto holders in Spain, and globally, to be aware of their tax obligations and ensure they are accurately reporting their gains and income from digital assets. Failure to do so can result in significant fines and penalties, which can have a detrimental impact on individuals’ finances.
With the metaverse and the crypto sector gaining momentum, it is crucial for investors to stay informed about the evolving regulatory landscape and comply with tax laws to avoid potential legal and financial consequences. As governments continue to tighten regulations around cryptocurrency, it is likely that we will see increased scrutiny and enforcement efforts in the coming years. Crypto holders should seek professional tax advice and ensure they are in compliance with the tax laws of their respective countries to avoid any potential issues in the future.