Spain’s Tax Authority Sending Notices to 66,000 Cryptocurrency Owners

The Spanish tax authority has reportedly started sending notices to about 66,000 cryptocurrency owners in the country. This number represents a massive increase from the 14,700 tax letters the agency sent to crypto owners last year. The letters will continue to be sent until the end of June despite the coronavirus crisis Spain is facing.

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Tax Authority Sending Letters to Crypto Owners

Despite the coronavirus pandemic and rising death toll, the Spanish tax authority, the Agencia Estatal de Administración Tributaria (AEAT), has started a campaign to send out tax notices to remind residents of their tax obligations. According to Europa Press:

[The Spanish tax authority] plans to quadruple the notices to taxpayers with cryptocurrency … going from 14,700 notices last year to about 66,000 in the campaign that started this Wednesday.

The Spanish tax authority, the Agencia Estatal de Administración Tributaria (AEAT), is reportedly sending out letters to 66,000 crypto owners this year, a 349% increase from the number sent in the previous year.

The campaign started on Wednesday, April 1, and will continue through June 30 regardless of the coronavirus pandemic situation, the publication conveyed. The campaign will also see the number of tax letters sent to residents with real estate rental income increase from 700,000 to 1.5 million this year and from 2.17 million to 2.32 million for those with accounts abroad.

Crypto Regulation and Taxation in Spain

While cryptocurrencies are not legal tender in Spain, the country currently has no specific regulatory framework for them, explained Global Legal Insights, a publication that specializes in providing information on legal, economic and policy developments.

Profits from the sale of cryptocurrencies are subject to capital gains tax of between 19% and 23%. Cryptocurrencies are not legal tender in Spain but the country does not yet have a regulatory framework for them.

Sales of cryptocurrencies are subject to capital gains tax at a variable rate of between 19% and 23%, the publication detailed, noting that the higher rate applies to gains in excess of 50,000 euros ($54,594). Meanwhile, the exchange of cryptocurrencies into euros and vice versa is exempt from value-added tax (VAT).

Spain is not alone in wanting to tax crypto owners; other countries that have done the same include the U.S., India, and Australia.

What do you think about Spain sending tax letters to 66,000 crypto owners? Let us know in the comments section below.

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via Kevin Helms