The Spanish Treasury has introduced a new series of requirements regarding the reporting and taxation of cryptocurrency holdings in the country. The new rules include an obligation for taxpayers to disclose all of their cryptocurrency holdings to tax authorities as well as their value in euros, which includes transaction details along with addresses of origin and destination.
Spanish Treasury Proposes New Crypto Rules
Spain is ramping up its tax mechanism when it comes to cryptocurrency holders. The Spanish Treasury has proposed a new set of rules that would apply to cryptocurrency holders and operators, imposing obligations that some consider excessive. New regulations introduced by the Treasury Ministry, which are still being reviewed and which will have to be approved, specify 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 the earnings of their trading operations, with no duty to present their crypto holdings. These rules will further apply to custody providers and cryptocurrency exchanges who must also provide this data to Spanish tax regulators.
Cryptocurrency transactions must also be reported, including origin and destination addresses, along with the type of cryptocurrency and its associated value.
However, the document establishes a minimum amount at which taxpayers must provide this data. If the citizen’s cryptocurrency holdings are less than the value of €50,000 ($52,854), there will be no duty to furnish this information to the tax authorities.
crypto tax crisis
Spanish tax authorities are trying to describe a new model that covers cryptocurrencies after having problems with the validity of Model 720, which had to do with taxing properties and goods held outside the country by citizens. , and was declared illegal by the European Union partly because of the severity of its fines.
With these new definitions, the Spanish authorities are now on their way to create a Model 721 that will define all duties for crypto holders inside and outside the country. The rules, if approved, will come into force from 2023, but taking into account the movements made during 2022.
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, already includes 17 exchanges and custody providers, but some of the big names in the crypto industry have yet to register.
What do you think about the new crypto regulations proposed by the Spanish Treasury? Tell us in the comments section below.
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