A surge in the popularity of crypto assets has opened doors to government oversight as well. It meant increased tax impositions on investors who are trading and buying crypto. Several taxpayers in Spain, however, decided to evade digital asset taxation. Now, the Spanish Tax Administration Agency [AEAT] has sent out notices to over 328,000 individuals.
According to a recent report, these cryptocurrency investors neglected to pay their taxes for the entire fiscal year 2022. The number of notices sent out in Spain surged by 40% this year. Back in 2022, only 150,000 notices were issued. In 2021, it was substantially smaller as only 15,000 notifications were distributed.
These reminders act as an open invitation to pay the tax. Crypto holders who have made profits between 19% to 23% on cryptos will be required to pay these taxes. The tariffs that are not paid on time will incur an additional 26% fee based on the amount of money that is past due. In Spain, 6.8% of the population owns crypto assets, according to a study from the National Securities Market Commission from 2022. It should be noted that most of these holders were aged between 35 to 44.
The nation has also created a new market for crypto real estate transactions. According to a recent study, Spain was the “hottest” location for real estate investors using cryptocurrencies. It was discovered that over 289 houses in Spain can be bought with digital assets. Additionally, with 231 machines Spain takes the top rank in Europe for the most crypto ATMs. Taking all of this into consideration, the government was certainly expected to go after crypto holders who evaded tax.
Spain sends out 660K notices this year
It looks like crypto wasn’t the only thing under the AEAT’s radar. This year, warnings will go out to more than 660,000 people who underreported their rental income. Additionally, 807,000 people will also be notified based on their foreign income.