17 Apr, 2023 @ 12:45
1 min read

Crypto earnings to be investigated by Spain’s Inland Revenue

Crypto Michaelwuensch Pixabay

THE Spanish Inland Revenue has launched an investigation to identify bitcoin-related assets to prevent tax evasion and avoidance.

The period for submitting the income tax return declaration (IRPF) opened on April 11. Taxpayers are required to give evidence of their earnings in 2022. And these include any profit obtained from cryptocurrency. 

In 2021, only 35,2000 IRPF declarations for that year’s tax period included crypto profit. These made a total of €759 million. 

Not every taxpayer is aware of this requirement. According to a study carried out by the Spanish Association of Financial Users (Asufin), 4.4 million people invest in cryptocurrency in Spain. However, over 40% of them believe they do not need to declare these earnings. 

Crypto Photo By Roger Brown Pexel
Taxpayers are required to give evidence of their crypto earnings in 2022. Photo by Roger Brown: Pexels

The gains are calculated deducting the purchase value from the sale value and are taxed at the following tax rates:

Less than €6,000 – 19% income tax

Between €6,000 and €50,000 – 21% income tax

Between €50,000 and €200,000 – 23% income tax

Over €200,000 – 26% income tax.

Losses can also be declared and may translate into paying 25% less annual tax during the following four years.

Those who have virtual currency but are not trading do not have to include them in the IRPF declaration form. 

This comes at a time when the Olive Press is doing an ongoing investigation on crypto company Globix. 

It is alleged that Globix bosses took out €11 million just before the company collapsed. 

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