Spanish Tax Authority Sends Warnings To Cryptocurrency Holders

The National Tax Agency has sent 14,800 letters to the Spanish warning them to declare their income from cryptocurrencies. Cryptocurrency holders in Spain must declare their income on tax returns otherwise they may incur fines of more than €5,000 ($5,900).

The tax agency explained that internal cryptocurrency holders are not responsible for their cryptocurrency buying transactions, but only for profitable sales. Experts, cited by local media, explained that in this case, the Spaniards should announce lucrative sales operations made for the period up to 2020. If someone bought 10 bitcoins (BTC) in 2017 for €10,000 ($11,880), which were sold for €200,000 ($237,700) in 2020, then the cryptocurrency holder has to “declare capital gains”.

It is worth noting that the number of letters sent this time by the tax agency is much less than the number of letters sent in 2020. Spain's tax authorities ran a similar campaign to send notifications to cryptocurrency holders last year, but targeting 66,000 cryptocurrency holders. This figure represents a significant increase from the 14,700 tax letters the agency sent to cryptocurrency holders in 2019.

Image: Crypto Sahi Hai