Spain’s Sumar Party Proposes 47% Tax on Crypto

Spain’s junior ruling party, Sumar, has proposed a new set of changes to the country’s cryptocurrency rules. These changes include raising crypto taxes to as high as 47% and treating all digital assets as claimable. It also involves creating a system to help investors assess risks. 

According to reports, this proposal is part of a larger effort to update three important financial laws. They include the General Tax Law, the Income Tax Law, and the Inheritance and Gift Tax Law. Sumar aims to modify how crypto profits are calculated and taxed, resulting in higher taxes for traders and long-term holders. 

Sumar’s Proposal Poses A Threat

Sumar’s reform plan will also allow the National Securities Market Commission (CNMC) to implement a visual “risk traffic light system.” This system will sort cryptocurrencies by risk level and show warnings on investment platforms. 

Another controversial proposal is to classify all cryptocurrencies as seizable assets. This would enable authorities to treat digital assets the same as traditional property in legal or tax enforcement cases. Critics argue that this reflects a basic misunderstanding of how decentralized assets work, particularly those kept in self-custody.

Tax adviser Antonio Bravo Mateu publicly criticized the proposed amendments on X, calling them “useless attacks against Bitcoin.” He said that Sumar’s proposals fail to acknowledge decentralized blockchain technology. He also affirmed that the proposal could push away investors and innovators in Spain’s growing cryptocurrency market.

Spain’s BBVA Advises Clients to Invest in Crypto

Recall that Spain’s second-largest bank, BBVA (Banco Bilbao Vizcaya Argentaria), recently encouraged its high-net-worth clients. The bank asked its wealthy customers to consider allocating a portion of their investment portfolio to cryptocurrencies, including Bitcoin. As reported by TheCoinRise, the bank advises clients to invest between 3% and 7% of their portfolio in crypto, depending on their risk appetite.

Undoubtedly, BBVA began recommending Bitcoin to private banking clients as early as September 2023. However, the bank’s advice contrasts with the broader stance of European regulators, who remain cautious about crypto.

Notably, BBVA has been offering crypto trading services since 2021 while expanding to active advisory in late 2024. This sets it apart from other traditional banking institutions. Furthermore, its expansion marks a notable shift in the bank’s strategy as it aggressively embraces digital finance.

Global Momentum for Crypto Tax Reform

Last month, the UK tax authority, HM Revenue & Customs (HMRC), intensified its efforts to ensure cryptocurrency investors pay their fair share of taxes. Meanwhile, this crackdown comes as other countries revisit their crypto tax policies. In the United States, lawmakers are weighing exemptions for small transactions and exploring the classification of staking rewards.

Likewise, South Korea’s National Tax Service has warned that it will seize digital assets, even those in cold wallets, if linked to unpaid taxes. With global regulators sharpening their focus, crypto investors face mounting pressure to stay compliant as governments wrap up on digital asset tax evasion.