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SKN | Spain’s Ruling Coalition Floats 47% Crypto Tax in Proposal Critics Call an ‘Attack on Bitcoin’

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Spain’s Sumar parliamentary group has proposed sweeping amendments that would sharply increase taxes on digital assets and expand the government’s authority over crypto holdings, according to local reports. The initiative, introduced in Spain’s Congress of Deputies, seeks to modify the General Tax Law, Income Tax Law, and Inheritance and Gift Tax Law, placing crypto under a significantly stricter regime.

Under the proposal, profits from cryptocurrencies would no longer be taxed under the “savings” bracket, which currently tops out at 30%. Instead, they would be reclassified into the general income tax base, lifting the maximum rate to 47% for individual investors. Corporations holding crypto would face a flat 30% rate, CriptoNoticias reported.

Sumar, a left-wing alliance and junior partner in Spain’s governing coalition, holds 26 of 350 congressional seats. Its plan would also direct the National Securities Market Commission (CNMV) to implement a “risk traffic light” system that investment platforms must display when offering crypto assets.

One of the most contentious changes is the proposal to classify all cryptocurrencies as attachable assets, making them eligible for government seizure. Legal experts argue the measure is unenforceable in practice, particularly for assets held in self-custody or tokens such as USDT, which regulated custodians in Europe are restricted from storing under MiCA rules.

Critics Warn of Political Overreach and Misunderstanding of Bitcoin

Tax adviser José Antonio Bravo Mateu called the proposals “useless attacks against Bitcoin,” arguing that policymakers fail to understand the technical realities of decentralized digital assets. He noted that Bitcoin held in private wallets cannot be arbitrarily confiscated and warned that overly aggressive taxation could push residents to relocate when BTC prices rise.

Other experts have recently proposed a more favorable regulatory framework. Tax inspectors Juan Faus and José María Gentil suggested establishing a special tax regime for Bitcoin, allowing taxpayers to apply FIFO or weighted-average accounting methods and adjust valuations when moving assets between wallets.

Spain’s tax authority has already stepped up scrutiny in recent years, issuing 328,000 tax notices to crypto holders for fiscal year 2022 and 620,000 notices the following year.

Japan Moves in the Opposite Direction

As Spain debates a significant tax hike, Japan’s Financial Services Agency is pursuing a major reduction in crypto taxes. The FSA is seeking to replace the current regime — which taxes crypto as miscellaneous income at rates up to 55% — with a flat 20% capital gains tax, aligning digital assets with equities and making Japan more competitive for investors and businesses.

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