Spanish platform mops up €5.5 million to solve crypto tax troubles and enter Mexico

Spanish startup that allows taxpayers to submit income tax returns accurately, TaxDown has raised a €5.5 million funding. The round saw the participation of Silicon-Valley-based VC firm Base10 Partners, JME Ventures, Kartik Raghavan (senior advisor at the Bill & Melinda Gates Foundation) and Jeff Reynar (former engineering director at Meta), have also participated in the round.

With this round, the company has now raised €8 million until now.

The Spanish startup, which is also the social partner of the Spanish Tax Agency, helps taxpayers file their taxes in a simple and reliable process that ensures maximum savings. Based on a proprietary algorithm, it performs a sophisticated analysis of users’ tax situation to help them understand their tax rights and obligations. The company claims that users can file their taxes in just 12 minutes.

Talking about its plans post the funding, Enrique García, co-founder and CEO, TaxDown said: “Our goal this year is to reach 1 million users and begin our international expansion, starting with Mexico. We want to help all taxpayers file their tax returns in a simple, easy and fast way. This will also include freelancers, crypto investors, and online traders.”

The platform is also making it easier for investors who have sold or traded crypto assets during the past year to file their tax returns. More than 7 million Spaniards invest in crypto assets and 41.4% of them are under the misconception that they do not have to pay any kind of tax on their gains or compensate their losses. TaxDown will make the process of reporting taxable gains and losses easier.

Adeyemi Ajao, managing partner, Base10 Partners added: “With the emergence of cryptocurrencies, NFTs and metaverse, tax agencies’ need to track this new breed of taxpayers. There is a demand for greater transparency and efficiency in the complex world of personal taxation. TaxDown makes this task easier. We are excited to support the team’s mission of modernising taxes in Europe and Latin America.”