Spanish Tax Authority Puts 66,000 Crypto Traders on Notice

The Spanish tax authorities have started sending warning notices to 66,000 crypto holders to remind them of their tax obligations. It may be the country’s attempt to raise funds to fight the coronavirus epidemic.

03 April, 2020 | AtoZ Markets – The Spanish tax authority, AEAT, will send more letters to crypto traders this year, despite the coronavirus pandemic. From April 1 to June 30, the AEAT would send notices to 66,000 cryptocurrency holders amid the COVID-19 crisis. It reminds them of their tax obligations.

The number is almost 350 percent higher than last year, which was 14,700, the report said. The AEAT is also aimed at those who earn rental income and foreign income. In Spain, Crypto is subject to capital gains tax. The tax rate ranges from 19% to 23%, according to Spanish tax consultant GM.

No Postponing Crypto Taxes in Spain

Javier Pastor, chief sales officer at Spain-based crypto exchange Bit2me, said he believes the government may be looking to generate revenue. It will help to pay the huge costs incurred during the COVID-19 crisis.

Spain is one of the countries that has extremely affected by the virus epidemic. As such, the government probably needs all the help it can get to generate income. This aid is also necessary to meet the enormous costs of managing the current situation.

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Pastor said the Spanish government has not postponed filing tax returns or paying taxes due to the pandemic. He said these measures would not affect Spanish exchanges much, although he believes that more stringent KYC and transaction monitoring rules are underway. He said:

“It doesn’t affect us very much in the companies in the sector that have done it right. I think they [the tax watchdog] only scare the novice user by applying such measures. I don’t think they’re going to get a lot of tax revenue from the crypto industry. Because it’s not even regulated in our country.”

The Spanish tax authorities have developed a definite interest in crypto in recent years. Since then, the authorities have taken a series of measures to directly control tax obligations.

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