Spain has introduced new regulations that require people to declare cryptocurrency holdings on foreign platforms.
The deadline to declare cryptocurrency holdings is March 31, 2024.
Spain is the first country in the EU to implement the Markets in Crypto-Assets Regulation.
In a bold move to keep a closer eye on the world of cryptocurrencies, Spain has introduced strict regulations that require people to share details about digital assets held on foreign platforms. This is a big step forward in making sure everyone pays their fair share of taxes and prevents sneaky business in the growing crypto world.
Here’s what you absolutely should know.
Deadline Alert!
By March 31, 2024, Spanish residents holding cryptocurrency on platforms outside the country must spill the beans on what they have. This rule applies to regular folks and companies alike. To make the declaration, they’ll need to fill out Form 721, a special document just for reporting virtual assets stored abroad.
If you’ve got more than 50,000 euros (around $55,000) in crypto, whether you’re an individual or a business, you’re required to declare it. For those using their own wallets, reporting takes a different route through the usual wealth tax form 714.
Spanish Tax Agency Takes a Stand
The Spanish Tax Administration Agency, Agencia Tributaria, is cracking down on crypto taxes. In April 2023, they sent a whopping 328,000 warning notices to people who didn’t pay taxes on their crypto in 2022. That’s a big jump from the 150,000 warnings in 2022 and a huge difference from the tiny 15,000 notices in 2021.
Spain is being smart about how it handles crypto, understanding the cool things blockchain can do but also being careful about the risks. In October, the Spanish Ministry of Economy and Digital Transformation announced a big step: the country will start using the Markets in Crypto-Assets Regulation in December 2025. It’s the first time a plan like this is happening in the European Union.
Use Crypto, But Responsibly!
So, Spain’s got new rules about declaring crypto stuff, and they’re thinking ahead when it comes to crypto laws. They want to make sure everyone plays fair, keep things clear with taxes, and make sure everyone’s money is safe. This shows Spain’s serious about shaping how crypto works, making sure it’s fair and safe for everyone involved.
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