According to local media, only 5.3% of Spanish crypto investors received a warning about income taxes.This would indicate that only 233,000 crypto investors in Spain, which is a small percentage of the estimated 4.4million Spanish citizens who have ventured into crypto investing with an eye to making a profit, were contacted and notified by the tax agency.
Spanish Tax Agency Flattens on Crypto Vigilance
The Spanish tax agency has only reached a small percentage of crypto users and investors since last year. According to local media, was able to notify only 5.3% of those who have made or invested in cryptocurrency transactions.
Only 233,000 investors representing 4.4 million have been notified about their obligation to declare cryptocurrencies under the income tax or holdings model. This warning does not cover a large portion of the country's investors, but it is a major milestone for the agency. It has increased its number of such warnings by roughly 16 times, from 14,800 in 2021.
This is due to the fact that different sources of information about cryptocurrency transactions are available. Jesus Gascon, the head of the Spanish Tax Agency, said that there is more information about cryptocurrency transactions than ever before. This is due to the increased awareness Spanish citizens have about cryptocurrencies and the various movements of funds associated with them.
Despite all this, many believe that the average Spanish citizen who receives one of these warnings doesn't know how to declare cryptocurrency operations. The tax agency created two sections specifically for this purpose.
Enrique Garcia, co-founder and CEO of Taxdown, an online company that processes income tax statements, stated:
Many taxpayers don't know what they need to do or if they are required to.
Only cryptocurrency owners who have bought and sold cryptocurrency assets during tax season need to provide these records to the tax agency. Only those who have purchased and kept their cryptocurrency assets will not be subject to tax.
Spain has been very busy in legislating how cryptocurrency must be taxed. In March, the Spanish Treasury Minister stated that cryptocurrencies shouldn't be declared under Model 720. This designation refers to funds held overseas. Due to the high penalties, this model was declared illegal and had to be amended.