The Spanish Tax Administration Agency (AEAT) is intensifying its efforts to ensure local cryptocurrency holders pay their due taxes. The agency plans to send out a staggering 328,000 warning notices for the 2022 fiscal year, targeting individuals who have not declared their crypto assets.
A report from the local newspaper El Mundo reveals that the number of notices has surged by 40% within just one year, from 150,000 warnings in 2022. That is a considerable escalation in the agency’s approach, considering that a mere 15,000 notifications were sent in 2021.
Broader Focus on Underreported Incomes
The AEAT’s crackdown isn’t limited to cryptocurrencies. In 2023, the agency will send more than 660,000 notices to individuals who have underreported their rental income. Plus, they will send 807,000 notices to those with undeclared income from abroad.
These notices serve as voluntary invitations to pay the applicable tax, which ranges from 19% to 23% for gains obtained through the sale of digital assets. Failure to comply with these tax obligations on time could result in an extra 26% fine, calculated based on unpaid taxes.
According to a report published by the National Securities Market Commission in August 2022, 6.8% of Spain’s population owns cryptocurrency assets. Most crypto holders are between ages 35 and 44, possess higher education qualifications, and earn over 3,000 euros (approximately $3,300) monthly.
Spain’s Growing Presence in the Crypto Landscape
Spain has emerged as a leading player in the European cryptocurrency market, boasting the highest number of crypto ATMs on the continent, with 231 machines.
That accounts for nearly 15% of Europe’s total number of crypto ATMs. On a global scale, Spain ranks fourth in crypto ATM distribution, following the United States, Canada, and Australia.
The significant increase in warning notices sent by the AEAT demonstrates a growing commitment to ensuring that all taxpayers contribute their fair share to the national coffers.
With the expanding presence of cryptocurrency in Spain and worldwide, tax authorities will likely maintain a keen focus on this emerging asset class.
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