Spain Tightens Crypto Tax Regulations, Mandates Foreign-Held Asset Declaration

Spain Tightens Crypto Tax Regulations, Mandates Foreign-Held Asset Declaration

By: Eva Baxter

Starting January 2024, Spanish citizens possessing crypto holdings exceeding 50,000 euros (about $55,000) on foreign platforms will be required to disclose them for tax purposes, according to updates from Spain's Tax Administration Agency, Agencia Tributaria. The tax agency has designed-specifically for this purpose-a new declaration form named Form 721, which demands residents and citizens to officially report their digital assets held on non-domestic platforms.

The declaration of overseas-held crypto assets is applicable to those as of Dec. 31, 2023, and the submission period ranges from Jan. 1, 2024, to March 31, 2024. However, this regulation only applies to individuals having balance sheets over 50,000 euros in crypto assets. Those preferring self-custody of digital assets will have to report through the conventional wealth tax form 714.

Agencia Tributaria, the Spanish tax agency, by implementing this regulation, aligns with the country's recent initiatives to efficiently tax cryptocurrency owners within its jurisdiction. Globally, tax authorities in the UK and the US are also stepping up efforts to tax crypto holders within their respective jurisdictions. Demonstration of this broad trend becomes evident as crypto platforms like Coinbase, Kraken and receive regulatory licenses from Spanish authorities, reflecting the country's dedication towards fostering a regulated crypto environment.

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