Spain's Crypto Tax Proposal Faces Backlash Amid New Risk Regulations
Spain Introduces Controversial Crypto Tax Amendments
The Sumar parliamentary group in Spain has proposed significant amendments to reform key tax laws impacting cryptocurrencies. The changes involve the General Tax Law, Income Tax Law, and Inheritance and Gift Tax Law. Under the new proposal, crypto profits would be taxed as general income, escalating the top rate to 47% from the current 30% savings rate, while corporate holders would face a flat 30% tax, as reported by CriptoNoticias.
The left-wing platform also suggests the National Securities Market Commission (CNMV) implement a "risk traffic light" system for cryptocurrencies on investor platforms. Additionally, the proposal controversially categorizes all cryptocurrencies as attachable assets, a move criticized by lawyer Cris Carrascosa on X as unenforceable, especially for tokens like Tether's USDt, which cannot be held by regulated custodians under MiCA rules.
Criticism and Alternative Proposals
Economist and tax adviser José Antonio Bravo Mateu denounced the amendments on X, describing them as "useless attacks against Bitcoin." He argues that decentralized assets like Bitcoin, particularly when self-custodied, cannot be seized or monitored like traditional financial assets. Bravo Mateu warns that such measures may prompt crypto holders in Spain to consider relocating.
In contrast, tax inspectors Juan Faus and José María Gentil have proposed a more favorable tax regime specifically for Bitcoin, allowing taxpayers to choose between FIFO (first-in, first-out) or weighted-average methods, with value adjustments to prevent tax gaming. Spain's tax agency has been proactive, issuing warnings to crypto holders, with 328,000 notices sent for the 2022 fiscal year and 620,000 similar notices the following year.
Japan's Different Approach
While Spain considers increasing taxes on crypto gains, Japan's Financial Services Agency (FSA) is advocating for a tax reform that would reduce the burden on crypto investors. Japan aims to apply a flat 20% capital gains tax on crypto earnings, aligning digital assets with equities and enhancing the country's competitiveness for traders and businesses.