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Spanish Finance Ministry Targets Cryptocurrencies and NFTs with New Tax Reform
Spain’s finance ministry wants to strengthen its authority to seize cryptocurrencies and non-fungible tokens (NFTs) as part of a new tax reform.
The Ministry of Finance of Spain is preparing to advance a new tax reform that would give it new powers to seize cryptocurrencies and digital collectibles in the event of default taxesaccording to the Spanish daily The Economist.
The report said the ministry proposed reforms to the General Tax Law, particularly Article 162, that would allow the local tax authority to seize cryptocurrencies when enforcing a user’s debt.
In addition, changes to the General Regulations on Tax Collection are proposed to allow the embargo on cryptocurrencies. El Economista notes that the ministry already has information on taxpayers’ cryptocurrency holdings, adding that starting this year, individuals and companies are required to declare their cryptocurrencies held abroad.
The report does not, however, provide specific details regarding the timing of the initiative.
Spain has played a pioneering role among European countries in implementing comprehensive tax controls on cryptocurrencies. Taxpayers are required to pay taxes on profits or losses related to cryptocurrencies in their personal income tax returns.
In addition, the declaration of crypto assets for wealth tax purposes must be made by March this year. This reporting obligation applies specifically to those whose cryptocurrency holdings exceed €50,000. For individuals whose crypto assets are stored in self-custodial wallets (such as MetaMask Or register), the existing wealth tax form, Form 714, is intended for reporting purposes.
As crypto.news earlier reportedSpain’s tax regulator has issued more than 325,000 warnings to residents who failed to declare their cryptocurrencies in 2023, marking a significant increase from the 150,000 warnings issued in 2022.