Spain’s 47% Crypto Tax Sparks Outrage, Critics Predict Full Regulatory Chaos

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Spain’s Sumar parliamentary group has submitted a proposal that would change how gains from cryptocurrencies are taxed, potentially pushing the top personal rate to 47%.

According to reports, the draft would move profits from crypto out of the current “savings” tax bracket — where gains are taxed up to around 30% — into the general income tax base, which carries higher top rates.

Sumar’s Proposal And Key Changes

Based on reports, the changes do more than tweak rates. They would treat gains from nonfinancial crypto assets as ordinary income, apply a 30% corporate tax rate to business crypto gains, and label all digital assets as attachable or seizable under certain conditions.

The plan also asks Spain’s securities regulator to design a “risk traffic light” that platforms must display to users, showing a simple risk indicator for various tokens.

Lawmakers filed the amendment recently. It targets at least three laws: the General Tax Law, the Income Tax Law and the Inheritance and Gift Tax Law.

Reports have made clear the package is broad and could change again as it moves through the legislature.

Industry Reaction And Legal Questions

The push has drawn sharp criticism from parts of the crypto community and some legal experts. Critics warn that treating crypto like regular income and declaring all tokens seizable could push investors and firms to move holdings abroad.

Others say seizing assets becomes tricky when tokens are self-custodied or held on platforms outside Spanish control.

Some lawyers argue the proposed seizure rules may be hard to apply in practice. They point to stablecoins and tokens that circulate across borders and systems, noting enforcement could be limited unless platforms or intermediaries cooperate.

At the same time, supporters inside the Sumar group say stronger rules are needed to close tax loopholes and provide clearer rules for a market they view as risky for retail savers.

Market And Policy Risks

If enacted as written, the reform would raise the tax bill for many individual holders and traders. Retail investors who now pay up to 30% on gains could face rates near 47% on large profits.

Companies that keep crypto on their balance sheets would see a flat 30% corporate tax on gains. Analysts warn that these shifts could reduce trading activity and deter new crypto firms from setting up in Spain.

Featured image from Unsplash, chart from TradingView

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