The Spanish Tax Administration Agency (AEAT) is ramping up efforts to charge local holders of cryptocurrency. As the popularity of crypto assets increases, the government has responded by increasing tax impositions on investors trading and buying crypto.
Several taxpayers in Spain have attempted to evade digital asset taxation in recent years. In response, the Spanish Tax Administration Agency (AEAT) has sent out notices to over 328,000 individuals, who neglected to pay their taxes for the entire fiscal year 2022.
Tax notice campaign
According to the local newspaper El Mundo, the AEAT intends to dispatch 328,000 warning notices to those who should pay their taxes on crypto for the 2022 fiscal year.
The number of notices increased by 40% in a year, with only 15,000 notifications in 2021. However, such activity isn’t focused solely 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 represent a voluntary invitation to pay the tax, which varies between 19% and 23% for gains obtained through selling digital assets.
Those who fail to pay the taxes in time would be subject to an additional 26% fine, calculated from the number of unpaid funds. The AEAT has stepped up its control over taxpayers with cryptocurrencies, reinforcing its inspection and surveillance activities.
Spanish government increases oversight
A surge in the popularity of crypto assets has opened doors to government oversight, leading to an increase in tax impositions on investors trading and buying crypto.
The Spanish government has taken note of the growing popularity of cryptocurrencies, leading to increased regulation to ensure that they are not used for illegal activities such as money laundering and tax evasion.
Taxpayers in Spain have been trying to avoid paying taxes on their digital assets, and the Spanish Tax Administration Agency is taking steps to prevent this.
The Spanish government has made it clear that digital assets, including cryptocurrencies, are subject to taxation, and investors must pay their fair share of taxes.
The Spanish government’s actions to regulate crypto taxation reflect a broader trend worldwide. As cryptocurrencies gain more mainstream acceptance, governments are beginning to regulate them more closely, including their taxation.
In Spain, the government has taken notice of the increased popularity of cryptocurrencies, and the tax agency is increasing its efforts to ensure that investors pay their taxes. It remains to be seen whether the Spanish government will take additional measures to regulate cryptocurrencies further, but for now, it is clear that the Spanish Tax Administration Agency will be keeping a closer eye on crypto holders.
