The Spanish Ministry of Finance (Ministerio de Hacienda) has issued a warning that income from crypto is taxable income and if crypto holders fail to declare their holdings then severe penalties can be imposed.
With the start of the new financial year, the Spanish tax office is warning crypto holders in Spain of the obligation to pay their crypto taxes. According to a report in Telemadrid, the Spanish Ministry of Finance estimates that about 15,000 Spaniards should declare crypto ownership in their tax returns.
According to Spanish tax law, crypto holders will be required to pay tax not on the purchase of their cryptocurrency, but on the sale of the cryptocurrency.
As is the case elsewhere, Spain is one of the countries experiencing the boom in the crypto industry, especially in the capital Madrid. Several industry sectors in the area have allowed payments through cryptocurrencies.
On that basis, Spain’s National Securities Market Commission (CNMV) has proposed stricter regulations on cryptocurrencies.
