Spain’s Ministry of Finance has announced tax reforms that will allow more financial institutions to collect taxes on behalf of the government.
The Spanish Ministry of Finance is seeking to expand its control over cryptocurrency monitoring in the country, allowing it to seize digital assets to pay tax debts.
According to reports, the ministry headed by María Jesús Montero is working on legislative changes to the General Tax Law, specifically Article 162, that will enable the Spanish Tax Agency to locate and seize cryptocurrency assets owned by taxpayers who still owe money.
A royal decree issued on February 1 expands the number of entities authorized to collect taxes. Previously, only banks, savings banks, and credit cooperatives could report to the Treasury.
The Treasury also intends to fight tax evasion more aggressively. It intends to force banks and electronic money institutions to report on all card transactions.
The rapid implementation of changes presents some regulatory challenges. The country is attempting to move forward with various regulations to govern cryptocurrency.
In October, the Spanish Ministry of Economy and Digital Transformation announced that the Markets in Crypto-Assets Regulation (MiCA), the first comprehensive European Union crypto framework, would go into effect nationally in December 2025, six months ahead of the deadline.
Residents of Spain who possess cryptocurrency assets on non-Spanish platforms have until the end of the following month to report them to the relevant tax authorities.
The submission period for a Form 721 declaration began on January 1, 2024, and will end on March 31. Individual and corporate taxpayers must declare the amount of funds stored in crypto accounts abroad by December 31, 2023.
However, only individuals with balance sheets that exceed 50,000 euros (approximately $54,000) in crypto assets are required to declare their foreign holdings. Those who keep their assets in self-custodial wallets must report them using the standard wealth tax form 714.
