Spain Tightens Crypto Tax Regulations: Foreign Assets Reporting Due by March 2024
Summary:
In line with new taxation regulations for digital assets in Spain, cryptocurrency owners holding assets on non-Spanish platforms are required to report these assets by March 31, 2024, using Form 721. Only holders with more than 50,000 euros in digital assets are required to disclose. The Spanish Tax Agency has increased its efforts to ensure local crypto asset tax compliance. Spain is proactively implementing diverse cryptocurrency regulations, with the European Union’s first comprehensive crypto regulation set to take effect nationally in December 2025.
According to new taxation rules affecting digital asset owners in Spain, individuals who hold any cryptocurrencies on platforms outside of Spain must report these by March 31, 2024. Form 721, a tax declaration document specific to overseas digital assets, was made public by the Spanish Tax Agency (AEAT) and was first introduced in the Official State Gazette on July 29, 2023. From January 1, 2024, until the end of March, both corporate and individual taxpayers will be able to file Form 721. Any foreign-held cryptocurrency funds as of December 31 will have to be disclosed. Only people with crypto holdings exceeding a value of 50,000 euros (approximately $55,000) are required to declare their assets abroad. Individuals who manage their assets in self-custodial wallets should use the conventional wealth tax form, Form 714, to report their holdings. The local taxation of cryptocurrency assets has seen increased attention from the AEAT. In April 2023, they issued 328,000 reminders to those who had not settled their cryptocurrency taxes for the 2022 tax year. This marked a 40% annual increase, up from 150,000 reminders in 2022 and a stark contrast to the mere 15,000 notices sent out in 2021. The Spanish government has strived to stay ahead of the curve by introducing diverse regulations to oversee cryptocurrencies. In a report from October, the Ministry of Economy and Digital Transformation in Spain revealed that the Markets in Crypto-Assets (MiCA) Act, the first comprehensive crypto regulation from the European Union, is set to come into national effect in December 2025, a full half a year earlier than the official deadline. The National Securities Market Commission (CNMV), Spain’s chief financial regulatory body, launched its initial case against a tech company for contravening crypto advertisement rules in November.
Published At
11/28/2023 10:26:59 AM
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