Spain is rolling out a new cryptocurrency tax regulation
By March 2024, citizens of Spain will be required to register their cryptocurrency holdings on international platforms, according to a new cryptocurrency tax policy that has been introduced by Spain.
New tax laws have been implemented in Spain, which require citizens to register any Bitcoin assets they have on platforms located outside of Spain. The Spanish Tax Administration Agency, known as Agencia Tributaria, has issued this instruction. As part of this process, they have developed a particular tax form, known as Form 721, for the purpose of disclosing virtual assets that are held overseas.
As of the 31st of December, the laws dictate that taxpayers in Spain, whether they are individuals or corporations, are required to declare the value of their cryptocurrency holdings on platforms located outside of Spain. For the purpose of this declaration, the reporting period will commence on January 1, 2024, and will finish at the end of March of the same year.
It is important to note that the necessity for declaration applies to individuals whose Bitcoin holdings are greater than €50,000. The existing wealth tax form, Form 714, is to be utilized for disclosure purposes for individuals who have cryptocurrency assets stored in wallets that they are responsible for themselves.
This action is a component of a larger endeavor being undertaken by the Agencia Tributaria to improve the efficiency with which Bitcoin assets are monitored and taxed. The government issued 328,000 warnings to individuals who failed to register their crypto assets in April 2023. This represents a huge rise from the 150,000 warnings that were given in 2022 to residents who failed to report their crypto assets. The increasing number of warnings draws attention to the fact that the agency is placing a greater emphasis on ensuring compliance with digital currency tax legislation.