MADRID – Bitcoin miners in Spain could soon pay a tax of as much as 47 percent, as the national government recognizes the potential profitability of the activity.
A recent notice issued by the National Directorate of Tax of Spain indicated that the minim Bitcoins and other cryptocurrencies will soon be a taxable activity.
Update 2020: Spain Taxes Bitcoin sales at a rate of 19-23% – bitcoin.com
Bitcoins and other cryptocurrencies are created through a process called mining where custom-built powerful computers are used to solve complicated mathematical problems in order to obtain the cryptocurrencies.
Previously, crypto mining has not been a taxed activity, despite the fact that the result is the creation of a valuable asset.
The National Directorate of tax indicated that they have taken the view that bitcoin mining is an economic activity.
It has not yet been indicated how mining will be taxed, but some experts think that the rate could be between 15 percent and 47 percent of the value of the mined coins.
While the tax may be a setback for some miners, industry specialists have suggested that the new tax could open a pathway for miners to begin claiming tax deductions for electricity and equipment used in the process.
Mining of cryptocurrencies requires significant amounts of electricity, (more than the country of Sweden!) and frequent updates to the equipment and mining rigs used.