Spain Cryptocurrency Tax Regulators Crackdown On Local Traders, Sends 66,000 Notices

Spain’s top tax agency - The Agencia Estatal de Administración Tributaria (AEAT) - has a recent crackdown on local cryptocurrency traders sending them notices.

As per local publication Europa Press, the tax agency is all set to send notices between April 1 and June 30 to around 66,000 cryptocurrency investors. This is a massive increase in the number of notices considering the tax agency had sent 14,700 notices last year.

This tax notices come at a time when the country is currency grappling through the major challenge of Coronavirus outbreak in the country which has infected over 135,000 people and registered over 13,000 deaths. Spain is one of the most-infected countries by COVID-19 in the world and comes just second to the U.S.

In Spain, cryptocurrency returns are considered under the capital gains tax laws, the rate of which varies anywhere between 19 to 23 percent. The Spanish tax authorities has been actively notifying crypto traders since 2015. Besides, the tax authority has been repeatedly collecting data from over 60 cryptocurrency trading platforms.

As per the 2018 reports, the Spanish tax agency had targeted all financial companies dealing with cryptocurrencies or related products. This included crypto exchanges, other financial firms, ATMs and other currencies accepting digital currencies as payment options.

But it is not that AEAT is singularly targeting crypto companies. The tax agency has also sent similar notices to individuals having income source from abroad and also with property rentals.

Spain is not alone where its tax agency is sending notices to local traders. Other countries like the U.S, Australia, and South Korea have initiated similar measures.

Last year, Portugal came as an exemption which announced complete exemption on cryptocurrency trading and payments.

The U.S. Internal Revenue Services has also sent letters to tax-payers who have failed in reporting their crypto income and pay the resultant tax. Last month, the Australian Tax Agency has also warned local traders of stiff penalties in case they fail to report their crypto holdings.