Spain’s Push for New Tax Powers
The Spanish Ministry of Finance is gearing up for a significant shift with a proposed tax reform targeting cryptocurrencies and non-fungible tokens (NFTs). The reform aims to grant the ministry the authority to seize digital assets in cases of tax non-compliance.
Proposed Reforms to General Tax Law
As per reports from El Economista, the proposed tax reform involves amendments to the General Tax Law, specifically targeting Article 162. These changes would empower the local tax agency to seize cryptocurrencies when executing a user debt.
Amendments to General Collection Regulations
In addition to changes in the General Tax Law, amendments to the General Collection Regulations are suggested to facilitate the embargo of cryptocurrencies. The report indicates that the ministry already possesses information on taxpayers’ crypto holdings.
Obligatory Declaration of Crypto Holdings
Starting this year, individuals and companies are obligated to declare their crypto holdings abroad. The report, however, does not provide specific details regarding the timeline for the initiative, leaving some uncertainties around its implementation.
Spain’s Pioneering Role in Crypto Tax Controls
Spain has taken a pioneering role among European countries by implementing comprehensive tax controls on cryptocurrencies. Taxpayers are mandated to report profits or losses related to crypto in their income tax filings.
Wealth Tax Declaration for Crypto Assets
Furthermore, the declaration of crypto assets for wealth tax purposes is required to be completed by March of this year. This obligation specifically applies to individuals with cryptocurrency holdings exceeding €50,000.
Increased Regulatory Scrutiny
As previously reported, Spain’s tax regulator issued over 325,000 warnings to residents who failed to declare their cryptocurrencies in 2023, marking a significant surge from the 150,000 warnings issued in 2022. The move reflects the increasing regulatory scrutiny and the country’s commitment to enforcing tax controls on crypto transactions.