Spain is taking a step in tightening its grip on cryptocurrency oversight, with the Finance Ministry, led by María Jesús Montero, introducing key legal changes aimed at bolstering tax collection from crypto assets. This strategic move is set to enhance the Spanish Tax Agency’s ability to identify and seize crypto assets from individuals failing to settle their tax dues.
A pivotal Royal Decree, activated from February 1, extends the capability of various financial entities, beyond traditional banks and credit cooperatives, to participate in tax collection efforts. This extension is part of a broader initiative by the Treasury to clamp down on tax evasion, including a new mandate for banking and digital payment platforms to report card transactions comprehensively.
In anticipation of the European Union’s Markets in Crypto-Assets Regulation (MiCA), Spain’s Ministry of Economic Affairs and Digital Transformation is gearing up for an early implementation by December 2025. This proactive approach aims to align Spain with the EU’s comprehensive framework for crypto regulation ahead of the official timeline.
The new regulations mandate Spanish residents with crypto assets on foreign platforms to disclose their holdings by the end of March, with the Form 721 declaration period commencing on January 1, 2024. The requirement covers individuals and entities possessing crypto assets valued over approximately 54,000 dollars as of the end of 2023. Additionally, those utilizing offline or ‘cold’ storage methods for their cryptocurrencies must report their holdings via the standard Form 714.
Spain’s recent regulatory updates signify a robust effort to manage the cryptocurrency market more effectively, aligning with a broader European movement towards ensuring financial stability and protecting citizens from potential financial risks associated with crypto transactions.