The Spanish Tax Administration Agency (AEAT) has stepped up its efforts to ensure local holders of cryptocurrency pay their taxes.
The AEAT will be sending out 328,000 warning notices to those who should pay their taxes on crypto for the 2022 fiscal year, representing a 40% increase from last year’s 150,000 warnings – according to Spanish newspaper El Mundo.
The move comes as fiscal authorities are taking the matter more seriously. In 2021, only 15,000 notifications were sent. However, the AEAT isn’t solely focused on crypto, with more than 660,000 notices to be sent this year to those who underreported their rental income and 807,000 for their income abroad.
The notices serve as a voluntary invitation to pay taxes, which vary between 19% and 23% for gains obtained through selling digital assets.
Those who fail to pay the taxes on time would be subject to an additional 26% fine calculated from the amount of unpaid funds.
Spain’s crypto market is growing, with 6.8% of the country’s population holding cryptocurrency assets, according to a report by the National Securities Market Commission in August 2022.
Most crypto holders in Spain are aged between 35 and 44, have higher education, and earn over €3,000 ($3,300) monthly.
Spain leads Europe in terms of crypto ATMs, with 231 machines, which represents around 15% of the total number. Globally, the country stands fourth after the United States, Canada, and Australia.
The AEAT’s increased focus on crypto tax compliance is likely a response to the growing popularity of cryptocurrencies in Spain. It is also consistent with the regulatory approach taken by many other countries around the world, as governments seek to ensure that they are able to collect tax revenue from this rapidly growing sector.
READ ALSO
Previous Articles:
- Bitcoin Halving: The Event That Could Launch the Cryptocurrency to New Highs
- Montenegro’s Central Bank Partners With Ripple for CBDC Pilot Program
- Tether Blacklists Address Responsible for Large MEV Exploit
- MetaMask Launches “Buy Crypto” Feature to Simplify Purchasing Cryptocurrency
- Cardano expands its utility by connecting to Ethereum Virtual Machine for smart contracts
