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 the obligation for taxpayers to disclose to tax authorities all their crypto holdings, as well as their value in euros, including transaction details with addresses of origin and destination.
The Spanish Treasury proposes new cryptographic rules
Spain is honing its tax machine when it comes to holders of cryptocurrency. The Spanish Treasury has Suggestion A new set of rules will apply to holders and operators of cryptocurrency, and impose obligations that some consider excessive. New rules introduced by the Treasury, which are still under review and will have to be approved, specify that holders of cryptocurrency may have to disclose their crypto holdings and their value in euros.
This differs from what has been suggested before, where the owners only had to announce the profits of their trades, and they had no obligation to present their crypto holdings. These rules will also apply to custodians and cryptocurrency exchanges that are also required to provide this data to Spanish tax regulators.
Cryptocurrency transactions, including addresses of origin and destination, must also be reported, along with the type of cryptocurrency and the value associated with it.
However, the document specifies the minimum amount for which taxpayers will be required to provide such data. If the value of a citizen’s cryptocurrency is less than 50,000 euros ($52,854), there is no duty to provide this information to the tax authorities.
Crypto tax problems
Spanish tax authorities are trying to describe a new model in which cryptocurrency is included after facing problems with the legality of Form 720, which relates to the taxation of property and goods held by citizens outside the country, which was announced in part by the European Union due to the severity of the fines imposed on it.
With these new definitions, the Spanish authorities are now on the way to creating a Form 721 that would define all the duties of cryptocurrency holders inside and outside the country. The rules, if approved, will apply starting in 2023, but taking into account moves made through 2022.
The Bank of Spain has also been active in registering Virtual Asset Service Providers (VASPs) operating in the country. The crypto registry, which is required to operate in the country, includes 17 exchanges and custodians, but some of the big names in the crypto industry are yet to be registered.
What do you think of the new encryption rules proposed by the Spanish Treasury? Tell us in the comments section below.
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