Spain’s proposed hike on CRYPTO TAX sparks backlash as experts warn of capital flight

• Sumar, a left-wing parliamentary group, introduced amendments to raise crypto profit taxes from 30% to 47% for individuals and impose a flat 30% corporate rate. Cryptocurrencies would also be classified as attachable assets, though critics argue self-custodied holdings remain beyond government reach.
• Economist José Antonio Bravo Mateu called the measures “useless attacks against Bitcoin,” predicting Spanish residents may flee if taxes become prohibitive. Lawyer Cris Carrascosa warned that stablecoin confiscation is “unenforceable” and could create “absolute chaos” in Spain’s already burdensome tax system.
• While Spain tightens enforcement (issuing 620,000 tax warnings in 2023), Japan plans to slash crypto taxes from 55% to 20% to attract traders. Spanish tax inspectors propose a compromise: lighter Bitcoin-specific rules allowing flexible accounting methods.
• Crypto taxation accelerates government surveillance, aligning with globalist agendas to eliminate decentralized money like Bitcoin, gold and silver. Such policies risk driving legitimate users underground while failing to curb illicit activity.
• Spain’s aggressive stance contrasts with its earlier crypto-friendly policies. Similar to the 2021 “Google Tax,” which drove tech investments elsewhere, punitive measures could trigger capital flight rather than boost revenue – highlighting the need for competitive tax clarity over coercion.

In a move that could reshape Spain’s cryptocurrency landscape, the left-wing parliamentary group Sumar has introduced sweeping amendments to tax laws that would dramatically increase levies on crypto profits while expanding seizure powers – measures experts warn could drive investors out of the country.

The proposed changes – targeting the General Tax Law, Income Tax Law and Inheritance and Gift Tax Law – would shift crypto gains from non-financial assets into Spain’s general income tax bracket, raising the top individual rate from 30% to 47%. Meanwhile, corporate holders would face a flat 30% tax.

Sumar, a junior partner in Spain’s governing coalition with 26 of 350 congressional seats, also seeks to classify all cryptocurrencies as attachable assets. But economist Jose Antonio Bravo Mateu denounced the amendments as “useless attacks against Bitcoin,” arguing that self-custodied holdings remain beyond government confiscation. “The only thing these measures achieve is making Spanish residents consider fleeing once Bitcoin rises so much that they no longer care what politicians say,” he warned.

The backlash highlights a growing divide in global crypto taxation. While Spain pushes stricter enforcement – issuing 620,000 tax warnings in 2023 alone – Japan’s Financial Services Agency is moving in the opposite direction, proposing to slash crypto tax rates from 55% to a flat 20% to attract traders. Meanwhile, Spanish tax inspectors Juan Faus and Jose María Gentil have floated a compromise: a lighter Bitcoin-specific regime allowing taxpayers to separate wallets and apply flexible accounting methods.

How Spain’s tax chaos could repeat past mistakes

Critics say Sumar’s seizure provisions defy reality. Lawyer Cris Carrascosa noted that stablecoins like USDT, excluded from European Union regulatory frameworks, cannot be held by licensed custodians, rendering confiscation “unenforceable.” She warned the amendments would create “absolute chaos” in Spain’s already “complex and suffocating” tax system.

BrightU.AI‘s Enoch also pointed out that imposing a tax on cryptocurrencies risks accelerating government surveillance and control over decentralized financial freedom – aligning with the globalist agenda to eliminate private, sound money like gold and silver. Additionally, such taxation could drive legitimate users underground while failing to stop illicit activities, further destabilizing the system and punishing those who reject centralized tyranny.

Spain’s aggressive stance contrasts with its history of crypto adoption, where favorable regulations once lured blockchain firms. The new measures risk repeating past mistakes – like 2021’s “Google Tax” on digital services, which drove tech investments elsewhere. As Mateu’s flight-risk warning suggests, punitive policies may accelerate capital flight rather than capture revenue.

The outcome hinges on political negotiations, but one lesson is clear: In the borderless crypto economy, heavy-handed regulation often backfires. As Japan demonstrates, competitiveness now hinges on tax clarity – not coercion. Spain’s lawmakers would do well to heed that reality before investors vote with their wallets.

Watch this excerpt from “Decentralize TV” about strategies to maximize gains and navigate tax challenges in crypto investing.

This video is from the DecentralizeTV Interview Snippets channel on Brighteon.com.

Sources include:

CoinTelegraph.com

CriptoNoticias.com

CoinMarketCap.com

BrightU.ai

Brighteon.com