The Spanish Treasury has introduced a new set of requirements related to the reporting and taxation of cryptocurrency holdings in the country. The new rules include requiring taxpayers to disclose all their holdings of cryptocurrencies to tax authorities, as well as their value in euros, including details of transactions with origin and destination addresses.
Spanish Treasury Proposes New Crypto Rules
Spain is tightening its tax apparatus when it comes to cryptocurrency holders. The Spanish Treasury has suggested a new set of rules that will apply to cryptocurrency holders and operators, imposing obligations that some say are excessive. The new rules put forward by the Treasury, which are still under review and approval, stipulate that cryptocurrency holders may be required to disclose their cryptocurrency holdings and their value in euros.
This differs from what was previously proposed, where holders only had to declare earnings from their trades and were not required to submit their crypto holdings. These rules also apply to custodial providers and cryptocurrency exchanges, who would also need to share this data with the Spanish tax authorities.
Cryptocurrency transactions must also be reported, including origin and destination address, cryptocurrency type and associated value.
However, the document sets a minimum amount above which taxpayers would have to provide this information. If the citizen’s cryptocurrency holdings are below €50,000 ($52,854), there is no obligation to submit this information to the tax authorities.
Problems with the crypto tax
The Spanish tax authorities are trying to describe a new model that includes cryptocurrencies, after having problems with the legality of the 720 model, which had to do with the taxation of real estate and goods held by citizens outside the country and The European Union has been partially declared illegal because of the size of its fines.
With these new definitions, the Spanish authorities are now on their way to creating a Model 721 that would define all the obligations for crypto holders inside and outside the country. The rules, if approved, will be applied from 2023, but taking into account the movements made in 2022.
The Bank of Spain has also been active in registering Virtual Asset Service Providers (VASPs) operating in the country. The crypto registry required to operate in the country has already onboarded 17 exchanges and custody providers, but some big names in the crypto industry have yet to register.
What do you think of the new crypto rules proposed by the Spanish Treasury? Tell us in the comment section below.
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