The Spanish Ministry of Finance, led by María Jesús Montero, is actively pursuing legislative reforms aimed at strengthening control over cryptocurrency monitoring. Key amendments to Article 162 of the General Tax Law are underway, empowering the Spanish Tax Agency to identify and seize digital assets from taxpayers with outstanding debts. A recent royal decree, effective from February 1, expands the entities with tax collection powers, signaling a broader strategy to combat tax evasion. Despite the proactive stance, the rapid changes pose regulatory challenges in Spain’s evolving crypto landscape.
The Ministry is navigating dynamic terrain, actively pursuing regulations for cryptocurrency use. In October 2023, Spain announced plans to adopt the Markets in Crypto-Assets Regulation (MiCA), the first comprehensive EU crypto framework, by December 2025. Ensuring compliance with tax obligations for cryptocurrency holdings is a crucial aspect of the Ministry’s efforts. Spanish residents with holdings on non-Spanish platforms face a declaration deadline, emphasizing the government’s commitment to cryptocurrency regulation and taxation complexities.
The submission period for Form 721 declarations, applicable to individuals and corporations, began on January 1, 2024, and concludes on March 31. Those with foreign holdings exceeding 50,000 euros in crypto assets must declare. Notably, individuals using self-custodied wallets report holdings through the standard wealth tax Form 714.
Spain’s comprehensive approach reflects its commitment to addressing cryptocurrency challenges. By expanding the Spanish Tax Agency’s authority and establishing reporting requirements for foreign crypto holdings, the government aims to enhance oversight. The urgency of addressing tax evasion while fostering a crypto-friendly environment presents an ongoing challenge, necessitating a nuanced regulatory approach for effective governance without stifling innovation.
As Spain progresses with its crypto regulatory agenda, increased scrutiny and industry adaptation are expected. The implementation of MiCA and ongoing tax reforms demonstrate Spain’s commitment to aligning with European standards, tailoring regulations to address unique cryptocurrency challenges and opportunities within the country.
