Spain's Finance Ministry, led by María Jesús Montero, is reportedly pushing for legislative reforms to the General Tax Code, specifically targeting Article 162. The proposed changes aim to expand controls over cryptocurrency surveillance, enabling the Spanish tax agency to identify and seize crypto assets owned by taxpayers with outstanding debts. The initiative is part of broader efforts to crack down on tax evasion and enhance the government's ability to collect unpaid taxes.
A royal decree that became effective on February 1 expanded the entities with taxing powers, allowing not only banks but also savings banks and credit unions to report to the Treasury. This move is aligned with the ministry's strategy to more aggressively combat tax evasion. Additionally, the proposed reforms seek to mandate reporting by banks and electronic money institutions on all card transactions, further strengthening the government's oversight.
The rapid pace of regulatory changes poses some challenges, but Spain is proactively adopting various regulations to effectively manage the cryptocurrency landscape. In October 2023, Spain's Ministry of Economy and Digital Transformation announced that the Market Regulation in Crypto-Assets (MiCA), the first comprehensive EU crypto framework, would be implemented nationwide in December 2025, six months ahead of the official deadline.
As part of ongoing efforts to enhance tax compliance related to cryptocurrency holdings, Spanish residents are required to declare any crypto assets held on non-Spanish platforms. The filing period for Form 721 statements commenced on January 1, 2024, and concludes on the last day of March. Individuals and corporations must declare the funds stored in offshore cryptocurrency accounts as of December 31, 2023. However, the obligation to declare foreign assets applies only to individuals with crypto assets exceeding €50,000 (approximately $54,000) on their balance sheets. Those utilizing self-custodial wallets need to report their assets through the standard wealth tax form 714.
