The increasing popularity of cryptocurrencies has led to greater government oversight and taxation on investors. However, a significant number of Spanish taxpayers have chosen to evade digital asset taxes, prompting action from the Spanish Tax Administration Agency (AEAT).
AEAT Sends Notices to Over 328,000 Individuals
A recent report revealed that numerous cryptocurrency investors in Spain failed to pay their taxes for the entire fiscal year of 2022. Consequently, the AEAT has sent out notices to over 328,000 individuals. The number of notices issued this year represents a 40% increase compared to 2022, when 150,000 notices were distributed. In 2021, only 15,000 notifications were sent out.
The reminders from AEAT serve as an invitation for crypto holders to pay their taxes. Those who have made profits between 19% and 23% on cryptocurrencies are required to pay these taxes. Unpaid taxes will incur an additional 26% fee based on the overdue amount. According to a 2022 study by the National Securities Market Commission, 6.8% of the Spanish population owns crypto assets, with most holders aged between 35 and 44 years old.
Also Read: UK to Implement New Regulations for Crypto Assets After FTX Bankruptcy
Spain’s Thriving Crypto Real Estate and ATM Market
Spain has also emerged as a popular destination for crypto real estate transactions. A recent study identified Spain as the “hottest” location for real estate investors using cryptocurrencies. The study found that more than 289 houses in the country could be purchased using digital assets. Additionally, Spain leads Europe in the number of crypto ATMs, boasting 231 machines. Given this context, it is unsurprising that the government is pursuing tax-evading crypto holders.
Over 660,000 Notices Issued for Other Tax Offenses
Cryptocurrencies are not the only focus for the AEAT. This year, more than 660,000 people will receive warnings for underreporting their rental income. Furthermore, 807,000 individuals will be notified based on their foreign income.
The Spanish Tax Administration Agency’s crackdown on crypto tax evaders underscores the growing regulatory scrutiny surrounding digital assets. As the number of notices issued continues to rise, it highlights the importance of compliance in the rapidly evolving crypto landscape.
