Spain’s Tax Office Hacienda Reminds Thousands Of Cryptocurrency Investors To Declare Profits

Arrest Made In Search And Capture For Bitcoin Scam In Torrox

Arrest Made In Search And Capture For Bitcoin Scam In Torrox. Image - Pixabay

Spain’s Tax Office Hacienda Reminds Thousands Of Cryptocurrency Investors To Declare Profits.

Spain’s Tax Agency, Hacienda, has sent letters to those who have been investing in cryptocurrencies reminding them to include all transactions in their tax statements.

In Spain, Bitcoin, a cryptocurrency, does not yet have a clearly established legal status, but despite this, it is not illegal to use it and the authorities are clear about what cryptocurrency taxes you must pay under certain conditions.

Investment skyrocketed last year and the Treasury now wants to remind digital currency holders that they must pay taxes on the profits they made last year. The Tax Agency has sent notifications to 14,800 investors throughout Spain. A figure that, according to the weight of Galicia (5.02%) in the Gross Domestic Product (GDP), means that 745 Galician investors have received the wake-up call. Of them, 250 reside in the province of Pontevedra and 95 in Vigo.

It is not the first year in that the Treasury has addressed such specific investors to remind them of their tax obligations, but it is however the first one which demands are being made after the massive rise experienced by bitcoin and other virtual currencies that reached all-time highs.

The value of bitcoin in March 2020 was 7,873 euros and in December of the same year, it had risen to 24,378 euros, which was an increase of 217%.

However, the increase in the value of the best-known virtual currency did not stop rising and this year it exceeded €54,000, like the rest of the so-called ‘altcoins’. Although in recent days it has fallen to €47,370, due to corrections in Turkey and the US- investors who sold a few weeks ago managed to make great profits.

The revaluation of cryptocurrencies has triggered the interest of investors, both individuals and large companies that include it as a payment method, as in the case of Tesla, BBVA, Paypal or Mastercard.


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Ron Howells

Ron actually started his working career as an Ophthalmic Technician- things changed when, during a band rehearsal, his amplifier blew up and he couldn’t get it fixed so he took a course at Birmingham University and ended up doing a degree course. He built up a chain of electronics stores and sold them as a franchise over 35 years ago. After five years touring the world Ron decided to move to Spain with his wife and son, a place they had visited over the years, and only bought the villa they live in because it has a guitar-shaped swimming pool!. Playing the guitar since the age of 7, he can often be seen, (and heard!) at beach bars and clubs along the length of the coast. He has always been interested in the news and constantly thrives to present his articles in an interesting and engaging way.