The Spanish State Tax Administration Agency (AEAT) is ramping up its efforts to ensure that those cryptocurrency holders residing in the country pay the due taxes on their crypto income. The AEAT plans to send out a total of 328,000 notifications to crypto holders that need to pay taxes for the 2022 fiscal year, which is a 40% increase from last year. This follows other warning notices sent out for those who underreported their rental income, and for any income attained abroad.

Notifications in this case represent a voluntary invitation to pay the due taxes on their gains, which range between 19% and 23%, and not doing so carries a hefty fine of 26%, calculated from the unpaid amount. According to a National Securities Market Commission’s (CNMV) report in August 2020, 6.8% of Spain’s population holds some type of crypto assets. These users tend to be mostly between the ages of 35 to 44, have higher education and earn a monthly salary of over 3,000 euros.

Apart from being one of the major holders of cryptocurrency, the country also holds the first spot in Europe for the number of crypto ATMs, with a total of 231 machines. Globally, Spain takes the fourth spot after the U.S., Canada, and Australia. But that is not to say that they are the best country when it comes to crypto taxes - different countries have different systems in place in regards to taxes on cryptocurrencies.

Overall, while Spain is one of the biggest players in the cryptocurrency market, they do have strict regulations when it comes to cryptocurrency taxes. The AEAT is quite committed to ensuring the country’s cryptocurrency holders abide by the local tax rules, and has been issuing circulars and notices to remind taxed entities of their taxation obligations. In order to avoid any penalties for not paying taxes, it is important for cryptocurrency holders to be mindful of any current or upcoming tax regulations and consult with a tax advisor whenever unsure.



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