Crypto: Part of the Spanish left wants to tax bitcoin 47%, causing outrage in the sector

No messing around! How Japan plans to reduce cryptocurrency taxes to support innovationSpain could do just the opposite. A new bill by the Sumar parliamentary group, which is part of the ruling left-wing coalition, could significantly increase taxes on cryptocurrency winnings, from 30% to 47%. The measure, which aims to reform several tax laws, is already raising concerns among investors and experts who fear it could stifle Spain’s nascent crypto sector.

A tax that could reach 47% of cryptocurrency revenues

The proposed law Summary therefore, it plans to change the way cryptocurrency income is taxed. Currently considered to be non-financial assetsthese gains could be reclassified to the general groupincome taxwith a rate of up to 47%. A flat rate of 30% would apply to businesses. This reform would affect three main tax laws : general tax law, income tax law and inheritance and gift tax law.

In addition tax increaseSumar proposes to introduce a system “traffic lights” to indicate the level of risk of investing in cryptocurrencies. This visual system would drive National Securities Market Commission (CNMV) and therefore should be displayed on all investment platforms.

An attack on Bitcoin?

Proposal from Summary apparently notunanimity. On social media, many experts and investors have condemned what they see as a “pointless attack on bitcoin”. José Antonio Bravo Mateu, an economist and tax advisor, emphasized that these measures show above all “a fundamental misunderstanding of the decentralized nature of cryptocurrencies”. He recalled that assets detained in self carei.e. the user himself, cannot be confiscated Or monitored as well as financial assets traditional :

“The only thing these measures do is make crypto holders based in Spain consider fleeing when BTC rises so high they won’t listen to what the politicians are saying anymore.”

José Antonio Bravo Mateu, economist and tax advisor – Source: Compte

This proposal comes at a time whenSpain has stepped up its efforts to collect taxes on cryptocurrencies. In 2023, the Spanish Tax Agency sent 328,000 formal notices to taxpayers cryptocurrencies for fiscal year 2022, followed by 620,000 similar announcements the following year. These pictures show a clear will by the government to increase tax revenue from cryptocurrencies.

If passed, this bill could slow the growth of cryptocurrency in Spain, a country that has seen a significant increase in the adoption of Bitcoin and other cryptocurrencies in recent years. However, it should be noted that the Sumar parliamentary group is far from a majority within the Spanish Socialist Party PSOE itself (Partido Socialista Obrero Español) and it may therefore happen that this draft law is no longer about power. Continuation.