• The Spanish Tax Authority is sending out 328,000 notices to individuals who owe taxes on their cryptocurrency holdings for the 2022 fiscal year.
• This is a 40% increase from the 150,000 notices sent out in the previous year and a significant jump from the 15,000 notifications issued the year before that.
• Failure to pay taxes on time will result in a 26% fine, calculated based on the amount of funds yet to be paid.
Spanish Tax Authority Increases Efforts To Collect Taxes On Crypto Holdings
The global crypto market is becoming increasingly saturated with some investors sneaking away from reporting their taxes. In order to fish out these individuals, the Spanish tax agency has decided to send out 328,000 notices to those who owe taxes on their cryptocurrency holdings for the 2022 fiscal year.
Increase Of 40% From Previous Year
This number represents a 40% increase from 150,000 notices sent out in 2021 and a huge jump from 15,000 notifications issued in 2020. In addition hundreds of thousands of other notices regarding rental income and earning income abroad will also be sent out this year.
Voluntary Invitations To Pay Taxes
These pending notices are seen as voluntary invitations to pay taxes ranging from 19-23%. However if people fail to pay on time they will incur an extra 26% fine which will be calculated according to how much money still needs to be paid up.
Spain’s Attitude Towards Cryptocurrency
In comparison with other countries that have not completely embraced cryptocurrencies yet, Spain has taken significant steps towards digital assets adoption by having 7% of its population holding them and increasing its ATM network up to 200 installed ATMs so far.
The AEAT’s decision comes as part of an effort made by European countries like France and Germany in order to normalize taxation of cryptocurrencies within their respective jurisdictions. With this move Spain hopes it can reduce any cases where people try avoiding paying their due taxes and promote legal compliance among crypto holders across Europe.