2024

The Spanish Ministry of Finance aims to enable the seizure of digital assets as a means to settle tax debts. 
Under the leadership of María Jesús Montero, the ministry is currently working on legislative reforms to the General Tax Law, with a specific focus on Article 162. 
The proposed changes would grant the Spanish Tax Agency the authority to identify and take control of crypto assets owned by taxpayers who have outstanding debts. 
<h2 id="new-royal-decree-allows-more-entities-to-collect-tax">New Royal Decree Allows More Entities to Collect Tax</h2> 
 According to a <a class="editor-rtfLink" href="https://www.eleconomista.es/legal/noticias/12653059/02/24/hacienda-embargara-las-criptomonedas-para-cobrar-deudas-de-los-contribuyentes.html" target="_blank" rel="noopener">report from El Economista</a>, a royal decree that recently came into effect on February 1 broadens the scope of entities designated to carry out tax collection activities. 
Previously, only banks, savings banks, and credit cooperatives were authorized to report to the Treasury. 
However, the ministry now plans to expand its efforts to combat tax evasion by compelling banks and electronic money institutions to provide information on all card transactions. 
The swift implementation of these changes presents certain regulatory challenges, as Spain proactively seeks to establish a comprehensive framework to govern cryptocurrencies. 
Spanish Treasury plans to seize crypto for tax debts, developing reforms to General Tax Law. The move expands tax collection powers to entities beyond banks. Spain aims to combat tax evasion and implement crypto regulations swiftly, aligning with EU framework. Residents with… 
— BlockVoyager (@BlockVoyagerAIO) <a href="https://twitter.com/BlockVoyagerAIO/status/1754506037754040487?ref_src=twsrc%5Etfw">February 5, 2024</a> 
In October, the Spanish Ministry of Economy and Digital Transformation announced its intention to adopt the Markets in Crypto-Assets Regulation (MiCA), which is the first comprehensive European Union crypto framework. 
The national implementation of MiCA is scheduled for December 2025, six months before the official deadline. 
Spanish residents who hold crypto assets on non-Spanish platforms have until the end of the following month to declare them to the tax authorities. 
The submission period for the Form 721 declaration began on January 1, 2024, and will conclude on the last day of March. 
Individual and corporate taxpayers are required to disclose the amount of funds held in their foreign crypto accounts as of December 31, 2023. 
However, it is important to note that only individuals with balance sheets exceeding the equivalent of €50,000 (approximately $54,000) in crypto assets are obligated to report their foreign holdings. 
Those who store their assets in self-custodied wallets must declare their holdings through the standard wealth tax form 714. 
<h2 id="countries-aim-to-tax-crypto-holders">Countries Aim to Tax Crypto Holders</h2> 
 Countries around the world are increasingly recognizing the need to tax cryptocurrency holdings as the digital currency market expands. 
Brazil, for instance, has introduced legislation effective from January 1, 2024, imposing a <a class="editor-rtfLink" href="https://cryptonews.com/news/brazilian-senate-oks-15-crypto-tax-rate.htm" target="_blank" rel="noopener">tax of up to 15%</a> on profits from cryptocurrencies held overseas by Brazilian nationals​​. 
Meanwhile, India continues to enforce stiff taxes on crypto transactions, maintaining a 30% tax on profits and a 1% Tax Deducted at Source (TDS) on all transactions​​. 
Likewise, the UK national taxing authority asked crypto users last year to <a class="editor-rtfLink" href="https://cryptonews.com/news/tax-crackdown-uk-authorities-target-crypto-users-for-unpaid-taxes.htm" target="_blank" rel="noopener">disclose any unpaid taxes</a> they might have in order to avoid fines. 
At the time, HM Revenue and Customs (HMRC) asked crypto users to make a “voluntary disclosure of any unpaid tax” relating to income or gains from cryptoassets, including exchange tokens, NFTs, and utility tokens. 
The government agency warned that users who fail to pay their taxes would face additional penalties.

Spanish Ministry of Finance to Seize Cryptocurrencies for Debt Collection from Taxpayers

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