Spanish Tax Agency to Notify Over 328,000 Crypto Holders

Spanish Tax Agency to Notify Over 328,000 Crypto Holders

According to the fiscal authority of Spain, there has been a significant increase of 40% in the number of potential taxpayers who failed to report their cryptocurrency holdings within a one-year period. And, because of this, Spanish authorities are looking to take action.

Spanish Authorities Taking Action

The State Tax Administration Agency (AEAT) of the Spanish government is stepping up its efforts to collect taxes from local holders of crypto assets. The AEAT plans to send out 328,000 notifications to those who owe taxes on crypto for the 2022 fiscal year. 

This represents a significant increase of 40% from the previous year’s 150,000 warnings, as reported by the local newspaper El Mundo on April 11th. It is noteworthy that fiscal authorities have only recently begun taking this matter seriously, with a mere 15,000 notifications sent in 2021. 

It is imperative to keep in mind that the Internal Revenue Service (IRS) has a broad scope of focus beyond cryptocurrency transactions. As a matter of fact, the IRS intends to dispatch more than 660,000 notifications this year to individuals who have underreported their rental income, and 807,000 notifications for income earned overseas. 

About the Notifications 

These notifications serve as an optional invitation to comply with tax obligations, which can vary from 19% to 23% for any profits generated from the sale of digital assets. Failure to fulfill these obligations in a timely fashion could result in an additional penalty of 26%. This will be calculated based on the amount of taxes that remain unpaid.

According to the August report published by the National Securities Market Commission (CNMV), a notable 6.8% of the Spanish population currently holds cryptocurrency assets. The majority of these individuals belong to the age group of 35 to 44, possess higher education degrees, and earn a monthly income of over 3,000 euros (approximately $3,300).

Spain currently boasts the highest number of crypto ATMs in Europe, with 231 machines, accounting for approximately 15% of the total amount in the region. Globally, Spain ranks fourth after Australia, the United States along with Canada in terms of the number of crypto ATMs.