The Spanish tax agency has included crypto as part of its new guidelines for this year’s upcoming tax collection season. Apart from boosting the channels for voluntary tax applications, the agency will potentiate the investigation of cryptocurrency in digital payments, including potentially seizing cryptocurrency associated with tax debts and criminal activity.
Spanish Tax Agency to Intensify Crypto Tax Oversight
The Spanish tax agency is preparing its crypto strategy for the upcoming tax collection season. On Feb. 27, the agency revealed several guidelines to increase the collection of taxes related to the use of cryptocurrency in digital payments, and also to curb criminal activity.
In the document, the agency declares that “this year, the intention of the collection area to promote actions to locate crypto assets subject to seizure is underlined.” This could mean that tax debtors will be tracked and have their cryptocurrency seized to amend their debts. However, the document does not offer more details about how the agency aims to do this, or the tools that it will use for this purpose.
In the same way, the institution indicates that it will develop “an investigation plan associated with the use of cryptocurrencies in the field of the digital economy in order to detect assets whose origin may be linked to criminal activities.”
Crypto in the Crosshairs
These new movements are directed to strengthen the vigilance that the Spanish tax agency exerts on crypto assets, with the objective of ramping up collection.
Other tax agencies in the world are also including digital wallets and cryptocurrency as an important part of their investigative and seizure processes. For example, the Argentine tax authority has been able to confiscate funds from digital wallets since February 2022, when the organization included this kind of structure, very popular in Argentina, as part of the assets susceptible to seizure.
However, the Spanish tax agency has historically not been so successful when targeting the growing cryptocurrency investment crowd. Reports indicate that it only managed to warn 5.3% of the cryptocurrency investors in the country about their duty of paying crypto taxes in 2022.
This means that more than 4 million cryptocurrency investors were not contacted by the agency regarding their cryptocurrency tax duties. Some of these crypto holders don’t even know they have to declare these assets, according to local analysts.
Tags in this story
What do you think about the actions of the Spanish tax agency regarding collecting crypto taxes? Tell us in the comments section below.
Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Cromavision / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read More
The Spanish government is taking steps to ensure that cryptocurrency transactions are subject to taxation. This year, the Spanish tax authority is actively targeting crypto-related activities in its efforts to bolster Spanish tax revenue.
With the turbulent market conditions over the past year, many investors have put their money into cryptocurrencies as a safe haven asset. But while this may provide a measure of financial security, it is important to note that even virtual currency gains must be counted as taxable income.
Under the Spanish Tax Agency (Agencia Tributaria), investors must now report income generated from cryptocurrency transactions. This means that profits from buying and selling different kinds of virtual currency must be declared when filing taxes in the upcoming tax season. To ensure compliance, tax returns will now include a section dedicated specifically to digital currencies.
In addition to taxes generated from cryptocurrency investments, the Agencia Tributaria is also cracking down on illegal activities such as money laundering and tax evasion. The tax authority is encouraging investors to be transparent in their dealings to avoid any legal consequences.
The Spanish government’s latest efforts to tackle digital currency transactions are part of its broader initiative to ensure the integrity of the country’s tax system. Such measures demonstrate the growing acceptance of cryptocurrency as a viable asset class and signal that governments are now taking steps to properly regulate such investments. This could benefit investors and the broader cryptocurrency industry in the long run, as it would provide greater security and stability in the sector.
Ultimately, the Spanish Tax Agency’s efforts will help create a more equitable system for taxing cryptocurrency investments. In this way, investors can feel confident that their gains will be properly accounted for, while the government can be sure to collect the revenue owed from such gains.
