Spain Proposes Sweeping Crypto Tax Overhaul Mirroring India’s Strict Approach

Spain's Sumar Parliamentary Group has unveiled aggressive tax reforms targeting cryptocurrency investors, proposing to shift crypto gains into higher income-tax brackets with rates reaching 47%. The plan includes a 'crypto traffic light' risk classification system and treats all tokens as seizable assets—a move critics warn could drive capital flight while failing to address existing enforcement challenges.

The amendments would reclassify crypto profits from Spain's savings tax base (currently capped at 30%) to the general Personal Income Tax regime. Corporate crypto gains face a flat 30% rate. This follows India's controversial 2022 crypto tax framework, which triggered significant trading volume migration to offshore platforms.

Market analysts note the proposal arrives as European regulators finalize MiCA implementation, creating potential jurisdictional conflicts. 'This isn't taxation—it's confiscation,' remarked Bit2Me CEO Leif Ferreira, echoing concerns from Spain's fintech association about the plan's workability.