Only 5.3% of Spanish Crypto Investors Received an Income Tax Warning – Bitcoin News

Only 5.3% of Spanish crypto investors have received an income tax warning, according to a report in local media. If accurate, this means that only 233,000 investors were contacted by the tax agency, a tiny fraction of the 4.4 million Spanish citizens who ventured into the cryptocurrency world with investment ideas in mind.

Spanish tax agency falls into crypto vigil

Only a small portion of cryptocurrency investors and users in Spain have been contacted by the National Tax Agency regarding their crypto operations from the past year. The organization was able to send warnings to only 5.3% of the estimated number of Spanish citizens who invested or transacted using cryptocurrency, according to a report by local media.

This means that only 233,000 investors out of 4.4 million have been warned about their duty to advertise cryptocurrencies using income and property tax forms. While this does not include a significant portion of the country’s total investors, it is an important milestone for the agency, as the number of this type of warning has increased nearly 16 times, from 14,800 issued in 2021.

The reasons for this increase relate to information received from various sources about cryptocurrency transactions. According to Jesus Gascon, head of the Spanish Tax Agency, there is more information than in other years, due to the increased awareness of cryptocurrencies among Spanish citizens and the various movements of funds associated with it.

Spaniards are still not sure

Even with all this, some say that the average Spanish citizen who receives one of these warnings does not know how to act to advertise cryptocurrency operations. For this mission, the tax agency has explicitly created two special sections to declare the tax income and legacy of cryptocurrencies.

In this regard, Enrique Garcia, CEO and co-founder of Taxdown, a company that processes income tax data online, stated:

Many taxpayers don’t know how or if they have to file these assets, even if they have to.

During this tax season, only crypto holders who bought and sold crypto assets need to submit these records to the tax agency. Users who just bought and held their cryptocurrency would not have to pay taxes on the assets.

Spain has been busy when it comes to legislating how to tax cryptocurrencies. Spain’s Treasury minister admitted in March that cryptocurrencies should not be declared under Form 720, a designation related to funds held abroad. The European Union made this model illegal due to its heavy penalties and it had to be changed.

What do you think of the performance of the Spanish tax authority in sending warnings to crypto investors? Tell us in the comments section below.

Sergio Goshchenko

Sergio is a cryptocurrency journalist based in Venezuela. Describing himself as a latecomer, he got into the crypto world when the price spike occurred during December 2017. Because he has a background in computer engineering, lives in Venezuela, and is influenced by the crypto-currency boom on a social level, he offers a different perspective on the success of crypto and how it helps people. Those who do not deal with banks are disadvantaged.

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