The Spanish Tax Authority sending massive Tax notices to crypto owners amid Corona pandemic
Amidst the worldwide spread of coronavirus pandemic, the Agencia Estatal de Administración Tributaria i.e. the Spanish Tax Authority (AEAT) intends to send more notices to the crypto businesses and crypto holders than ever. Interestingly, though the cases of coronavirus are alarmingly increasing in Spain, it is also the hot destination for crypto and blockchain activities in Europe.
The AEAT has disclosed that this year, it will send 66,000 additional notices in between April 1 to June 30 to remind the taxpayers to pay their taxes.
Interestingly the number of notices is 350% higher than the last year in which 14,700 entities have been sent tax pay notices. The notice campaign will also send notices to those earning real estate income such as rental income and foreign income.
No Cryptocurrency Regulations and Taxation in Spain
As there is no regulatory framework for cryptos in Spain, the sale of cryptocurrencies is subject to capital gains tax in Spain. At a variable rate of 19% to 23%.
Also, the exchange of cryptos into euros is exempted from value-added tax (VAT).
Spain is not the only country to levy taxes on crypto owners but it has now joined the nations such as the US, Australia which wants to take crypto taxes.
CBW - External Analyst