Hold onto your digital wallets, Spain! The Ministry of Finance is proposing a tax reform that grants them the power to seize crypto and NFTs for unpaid taxes.
Here’s the lowdown:
- New Rules, New Powers: The proposed reform amends the General Tax Law and Collection Regulations, allowing authorities to identify and seize crypto assets linked to tax debts.
- Early Information Advantage: Spain already collects data on residents’ crypto holdings, thanks to mandatory declarations introduced this year.
- No Hiding Place: Even self-custodied crypto in wallets like MetaMask is subject to declaration and potential seizure if taxes go unpaid.
- Crackdown Intensifies: This move follows a wave of warnings issued to residents who failed to declare crypto in 2023, tripling compared to 2022.
Spain’s proactive approach:
- Pioneering Crypto Regulation: They’re at the forefront of European countries taxing crypto gains and losses as personal income.
- Wealth Tax Declaration: Residents with crypto assets exceeding €50,000 must already declare them for wealth tax purposes by March 2024.
Timeline unclear: While details on the reform’s implementation remain uncertain, one thing’s clear: Spain’s playing hardball with crypto tax evasion. So, stay compliant and keep your crypto records squeaky clean!
