The Sumar Parliamentary Group in Spain has introduced three amendments to cryptocurrency tax regulations, increasing the tax burden on profits from Bitcoin and other digital currencies.
The proposal submitted to the Congress of Deputies this month indicates that profits from crypto assets, deemed not to be financial instruments, ought to be taxed under Personal Income Tax (IRPF) at the standard rate. The overall IRPF base is presently limited to 47%, according to data from Wolters Kluwer.
A report by CriptoNoticias states that currently, crypto assets are subject to savings base rates, with taxes reaching as high as 30%.
Additionally, the group stated that these profits ought to be taxed at a rate of 30% under the Corporate Income Tax.
The proposal, as the third amendment, recommends that the National Securities Market Commission (CNMV) implement a visual risk traffic light system for cryptocurrencies. This will be shown on investor platforms in Spain, assessing official registration, oversight, support, and liquidity.
Economist and tax advisor José Antonio Bravo Mateu stated that these measures “clearly oppose Bitcoin, Ethereum, and other cryptocurrencies.”
Additionally, the proposal expands the previous rule, which solely applied to assets under the EU MiCA framework, to include any cryptocurrency under the scope of seizable assets.
This proposition is “unenforceable,” as attorney Chris Carrascosa notes. She emphasized, “If this is approved, it’s going to cause absolute chaos in the entire crypto tax regime in Spain.”
Spanish Lawmakers Demand Crypto Traffic Light Risk Warnings
In July, Cryptonews reported that a coalition of Spanish lawmakers urged the nation’s primary financial regulator to require crypto assets to display “traffic light” risk warnings.
This system would assist users in making a “clear and visual” choice regarding the type of asset they are purchasing. The Sumar Parliamentary Group aimed to change the names of cryptocurrencies, such as Bitcoin and Ethereum.
Economist José Antonio described it as “ineffective assaults on Bitcoin,” emphasizing that these are “impervious to political assaults.”
“The sole outcome of these measures is that their holders living in Spain contemplate escaping when BTC increases to a level where they disregard what politicians say,” he stated on X.
Crypto Tax Uncertainties in Spain
A cryptocurrency dealer was fined €9 million by Spanish authorities in August for a transaction that produced no profit. A non-profit transaction is regarded as a capital gains event by the Spanish Tax Agency (AEAT).
The incident revealed shortcomings in the nation’s taxation and cryptocurrency rules. Investors in Spain are left without enough protection, according to legal experts and EU watchdogs.
Leading Spanish law firm Lullius Partners stated at the time that “Spanish tax legislation still lacks clear guidelines on how cryptocurrency holdings or tokenized assets should be taxed.” “Determining when and under what circumstances cryptocurrency transactions are deemed taxable is still challenging.”
