- Spanish Treasury proposes reforms to General Tax Law, enabling seizure of crypto assets for unpaid taxes.
- Royal Decree expands reporting obligations to include electronic money institutions and payment service providers.
- Spain ramps up efforts to regulate crypto sector, aligning with international trends to enhance oversight and transparency.
In a bid to tighten its grip on the burgeoning cryptocurrency market, the Spanish Ministry of Finance has unveiled plans for a sweeping tax reform. The proposed changes aim to bolster oversight of digital assets and clamp down on tax evasion within the sector.
Under the proposed reforms, outlined in a recent report by El Economista, amendments to the General Tax Law would empower the Spanish Tax Agency to assert control over cryptocurrencies and non-fungible tokens (NFTs) to settle tax obligations. Specifically targeting Article 162 of the law, the reforms would grant authorities the ability to identify and seize digital assets in cases of unpaid taxes.
These measures come on the heels of a Royal Decree approved by the Spanish Government on February 1, which broadens the scope of institutions required to collaborate with the Treasury in collecting tax debts. Previously limited to traditional banking entities, the decree now extends the obligation to report transactions to electronic money institutions and payment service providers like PayPal, American Express, Getnet, and UniversalPay.
The move represents a concerted effort by Spanish authorities to reign in the cryptocurrency market, which has seen significant inflows of capital in recent years. According to data from the Bank of Spain, over 60 billion euros flowed into the country through crypto channels in 2021 alone. Wealthy taxpayers have also increasingly turned to digital assets, declaring over 2.1 billion euros in cryptocurrencies in 2023.
In a bid to bring greater transparency to the sector, Spain has been steadily ramping up its regulatory efforts. In 2023, the Ministry of Economy and Digital Transformation announced plans to adopt the Markets in Crypto-Assets Regulation (MiCA) ahead of schedule, with implementation slated for December 2025. Additionally, tax reforms introduced in recent years mandate reporting of crypto profits in income tax returns and require individuals and companies to disclose holdings and transactions to the Tax Agency.
As governments around the world grapple with the challenges posed by the rapid rise of cryptocurrencies, Spain’s latest tax overhaul underscores the growing urgency to establish robust regulatory frameworks to govern digital assets effectively.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.