• The national tax agency in spain warns crypto investors only 5.3%.
• Enrique Garcia, CEO of Taxdown, speaks out about the news.
• Users who purchased or sold cryptocurrency are not expected to file tax returns.

Spanish media reports that just 5.3% of crypto-investors have been warned by the government to report income taxes to their national tax agency. From 4.4 million investors, 233,000 have been notified.

Although the total number of investors included in the tax agency was not large enough, this milestone still marks a significant achievement for the agency. It increased the number of investor from 14,800 to 233,000 in 2021. This increase is due to the multiple information sources that provide details about crypto transactions.

According to Jesús Gascón, head of the Spanish Tax agency, compared to other years, there is more information coming in this year regarding the crypto industry in Spain. It is due to the growing awareness about the crypto industry as well as web 3.0 movements.

Even with all of this, some say the average Spanish citizen receiving one of these warnings wouldn’t know what action to take in order to declare cryptocurrency operations. The tax agency created separate sections for declaring cryptocurrency heritage and tax income.

Enrique Garcia is the CEO and co-founder of Taxdown. Taxdown processes income tax statements online.

Many taxpayers are not aware of the requirements for presenting these assets.

Additionally, crypto investors must report only to their national tax agency if they have sold or purchased crypto. Spain, however, has been very active when it comes regulation of the crypto industry.

Back in March, the Spanish Treasury minister admitted that cryptocurrencies could not be declared according to Model 720. It is a designation which refers funds abroad. The EU declared this model illegal due to its high penalties. It had to be modified.

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