Spanish Tax Agency Warns 5.3% Of Crypto Investors About Income Tax By CoinQuora

Spanish tax agency warns 5.3% of crypto investors about income tax

  • The national tax agency warns only 5.3% of crypto investors in Spain.
  • Taxdown CEO Enrique Garcia comments on the news.
  • Only users who have bought and sold crypto are supposed to report to the tax agency.

Spanish local media reported that only 5.3% of crypto investors have been warned to declare their income taxes to the national tax agency. Figures showed that 233,000 investors received the warning out of a total of 4.4 million investors.

Although the agency failed to include a large number of investors, it still represents a significant milestone for the tax agency as it increased the number of investors from 14,800 in 2021 to 233,000. reasons for this increase are related to information from several sources about cryptocurrency transactions.

According to Jesús Gascón, head of the Spanish tax agency, compared to other years, there is more information coming this year regarding the crypto industry in Spain. This is a result of the growing awareness of the crypto industry and Web 3.0 movements.

Even with all of this, some say the average Spanish citizen receiving one of these warnings would not know what action to take to report cryptocurrency transactions. For this, the tax authority has explicitly created two special sections for declaring cryptocurrency tax income and wealth.

Enrique Garcia, CEO and co-founder of Taxdown, a company that processes online tax returns, commented

Many taxpayers do not know how they should present these assets or even whether they are required to do so or not.

Also, only crypto investors who have sold and bought cryptos are supposed to report to the national tax agency. Yet, at the same time, Spain has been busy when it comes to regulating the blockchain industry, crypto in particular.

Spain’s treasury minister admitted last March that cryptocurrencies should not be reported under model 720, a designation related to funds held abroad. This model was made illegal by the EU due to its high penalties and had to be changed.

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Esther L. Steinbach