Spanish tax agency (Agencia Tributaria) has warned cryptocurrency holders to declare digital assets. In case of failure to comply with this requirement, they may be fined.
According to Telemadrid publication, Spanish Ministry of Finance (Ministerio de Hacienda) reminded residents of the country that cryptocurrency assets are subject to taxation. In case, if the crypto holder does not declare these assets, he will be punished.
Starting the new fiscal year, local tax authorities have reminded cryptocurrency owners of their tax liabilities. Spanish Ministry of Finance estimates that approximately 15,000 citizens will have to indicate ownership of the cryptocurrency on their tax returns.
According to Spanish tax legislation, owners of cryptocurrencies must pay tax not on the purchase of cryptocurrencies, but on the sale of this one.
According to tax experts, crypto holders must declare deals in cryptocurrency made during 2020.
“Either because we have changed them to euros, to another cryptocurrency, or because we have used them to buy goods, a flat, or a car,” they say.
Like the rest of the world, Spain’s crypto industry is experiencing a surge. Today, more than 100 retailers accept cryptocurrency in the capital.
In turn, the country’s authorities reacted negatively to the popularization of cryptocurrencies. So, after a large-scale advertising campaign of the Bit2me crypto exchange, Spanish authority (CNMV) proposed stricter rules for regulating Bitcoin over the country. In response to these actions, CNMV and Bank of Spain issued a joint statement regarding the investment risks inherent in cryptocurrencies, describing them as volatile, complex, and opaque assets.