Spanish tax authority Hacienda issued 14,800 warning letters to Spaniards who hold cryptocurrencies. The move of Spanish authorities seems to impose a tough attitude on the crypto hodlers.
Enforcing strict rules and regulations on the crypto industry, the national tax agency is compelling the crypto hodlers to declare their earnings while filing their tax, otherwise fined over 5000 euro. The tax agency is keeping track of investors who are failing to declare their crypto holdings. Enforcing their tough stance on the cryptocurrency industry, and the national tax agency seems to take this very seriously.
14,800 Warning Letters to Declare Mandatory Tax Filings
Spain’s tax agency, Telemadrid is straightforward on making cryptos taxable. From the sources, the notifications regarding the same have already arrived at their correspondent receivers.
However, Hacienda explained that the domestic cryptocurrency holders are only accountable for profitable sales and not for their crypto buying operations.
From the expert’s eye, Spaniards should declare their “made over 2020” profitable sale operations. They said;
“Either because we have exchanged them to euros to another cryptocurrency or because we have used them to buy a good, a flat, or a car.”
“If somebody bought 10 bitcoin (BTC) in 2017 worth 10,000 euros ($11,880) which were sold for 200,000 ($237,700) euros in 2020, then the crypto holder should declare a capital gain of 190,000 euros ($225,800).” the excerpts added.
Authority Targets 66,000 Crypto Holders Past Year
In February 2021, Ana de la Cueva, the Spanish Secretary of State for the Economy, said “Cryptos such as bitcoin carries a risk of default, given that the user does not have the protection offered by traditional payment systems against a default by the counterparty.”
The total number of letters sent by the authority of Spain is lower than that sent in the past. In 2020, the tax authority happened to do a similar campaign of sending notices to crypto owners. The total targets covered were approximately 66,000 investors.
One can clearly see a prodigious increment in the tax letters sent by the agency from the past.