According to a recent report from the media outlet Europa Press, it has been revealed that over 70% of Spanish cryptocurrency traders reported losses during the financial year 2022. The data was gathered and released by TaxCripto, an accountancy firm specializing in assisting crypto holders with their tax returns.
The report highlighted that those who invested in crypto derivatives and futures suffered even greater losses, with a staggering 91% of this particular group reporting negative returns.
In Spain, it is now mandatory for crypto traders to declare their taxes, although the tax authorities have faced challenges in effectively implementing their taxation plans in the past. They have previously issued written warnings to suspected crypto traders, emphasizing the importance of declaring their cryptocurrency earnings to avoid facing substantial fines.
TaxCripto conducted the research based on data gathered from its own customers, revealing that a significant number of crypto investors experienced income losses in the financial year 2022. The primary cause for these losses was attributed to a notable decline in cryptocurrency prices throughout the year.
Interestingly, this situation might have led to an intriguing quirk in the tax reporting system. By declaring income losses, these investors potentially found themselves exempt from paying taxes on their cryptocurrency holdings. This particular aspect of the tax law seemed to encourage many investors to take advantage of the opportunity and proactively materialize their losses before the year’s end, all with the aim of reducing their overall tax liabilities.
This strategic move to report losses could have allowed investors to optimize their tax situations and alleviate the financial burden that might have arisen from gains in previous years or other taxable income sources.
As always, it’s essential to stay updated with the latest tax regulations and consult with qualified professionals to ensure compliance with the relevant tax laws and make informed financial decisions.
Spanish Crypto Traders Tax Returns: What Can We Learn?
The TaxCripto study provided additional intriguing insights into the cryptocurrency trading landscape in Spain. According to their findings, an overwhelming 85% of the crypto transactions declared on tax returns were conducted through the Binance trading platform. In contrast, Coinbase accounted for just 10% of the reported transactions, and the Spanish Bit2ME platform represented less than 2% of the total.
Surprisingly, Bitcoin (BTC), often considered the flagship cryptocurrency, only made up 10% of the declared transactions. Instead, Binance Coin (BNB) emerged as the most prominent choice, accounting for 18% of the total declared transactions, followed closely by USDT at 11%.
Analyzing the transaction types, the study revealed that staking was the most popular type of declared trade in Spain, constituting a significant 46% of all reported transactions. Crypto-to-crypto trades came in a close second, representing 39% of the total.
These insights provide a valuable glimpse into the preferences and behaviors of Spanish crypto traders, shedding light on their platform and cryptocurrency choices as well as their preferred types of transactions. It’s worth noting that the cryptocurrency market is dynamic and subject to change, so these figures may have evolved since the time of the study.
