Spain Strengthens Crypto Oversight to Settle Tax Debts

The Spanish Ministry of Finance is implementing legislative reforms to increase monitoring of cryptocurrencies, allowing the seizure of digital assets to resolve tax debt, aligning with EU regulations.

The Spanish Ministry of Finance, under the leadership of María Jesus Montero, is taking significant steps to strengthen its control over cryptocurrencies in the country. The ministry is actively working on legislative reforms targeting the General Tax Law, focusing in particular on Article 162. These reforms aim to empower the Spanish tax agency to identify and confiscate crypto assets from taxpayers who have outstanding tax liabilities. The move is part of a wider effort to combat tax evasion and align with the European Union’s regulatory framework.

A recent royal decree that went into effect on February 1 expanded the scope of entities that can fulfill tax collection obligations, extending beyond traditional banks to include electronic money institutions, which are now required to report all transactions with maps. This expansion is a clear indication of the Spanish government’s commitment to tighten its control over tax collection and ensure compliance in the fast-growing cryptocurrency market.

In addition, Spain is preparing to adopt the Markets in Crypto Assets (MiCA) Regulation, the first comprehensive crypto framework from the European Union, by December 2025, six months ahead of the official deadline. This proactive stance underscores Spain’s commitment to creating a stable regulatory environment for cryptocurrencies.

Spanish residents with crypto assets on platforms outside of Spain are required to declare these assets by the end of March 2024, with the declaration period for Form 721 starting on January 1, 2024. However, it is important to note that only individuals with crypto assets above €50,000 are required to report their holdings. Those with proprietary portfolios must disclose their holdings through the standard Wealth Tax Form 714.

These developments come as countries around the world increasingly recognize the need to tax cryptocurrency holdings amid an expanding market. Spain’s efforts to improve its cryptocurrency monitoring and taxation mechanisms are part of a global trend toward greater transparency and regulation of digital assets​​​​

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