Spain’s Ministry of Finance is flexing its muscles, proposing a tax reform that grants them the power to seize crypto and NFTs from tax dodgers. Let’s break down what this means for crypto holders in Spain:
Taxman Comes Knocking on Your Crypto Wallet:
The proposed reform amends Article 162 of the General Tax Law, empowering authorities to confiscate cryptocurrencies held by individuals or companies who fail to pay their taxes. Additionally, the General Collection Regulations could be altered to allow for the embargo of crypto assets.
Spain Takes a Leading Role:
Spain isn’t messing around when it comes to crypto taxation. They’ve already mandated individuals and companies to declare their foreign-held crypto, and taxes on crypto profits or losses are standard on income tax filings.
Declaration Deadline Looms:
For those holding crypto assets exceeding €50,000, a declaration is due by March of this year for wealth tax purposes. Even self-custodied crypto (stored in wallets like MetaMask) needs to be reported using Form 714.
Repeat Offenders Beware:
The tax authorities aren’t messing around. Over 325,000 warnings were issued in 2023 for undeclared crypto holdings, up significantly from 2022. This foreshadows potential seizures for repeat offenders under the new law.
What This Means for You:
This reform sends a clear message: Spain takes crypto taxes seriously. Play by the rules and declare your holdings to avoid facing asset seizure. Stay informed about the evolving regulations and consult with qualified tax professionals to ensure compliance.
