The Spanish Treasury has introduced a new set of requirements regarding the reporting and taxation of cryptocurrency assets in the country. The new rules include an obligation for taxpayers to disclose to the tax authorities all their cryptocurrency holdings, as well as their euro value, including transaction details with origin and destination addresses.
Spanish Treasury Proposes New Cryptocurrency Rules
Spain is honing its tax apparatus when it comes to cryptocurrency holders. The Spanish Treasury has proposed a new set of rules that will apply to holders and operators of cryptocurrencies, imposing obligations that some consider excessive. The new rules presented by the Treasury Department, which are still being revised and need to be approved, indicate that cryptocurrency holders may have to disclose their cryptocurrency holdings and their value in euros.
This is different from what was previously proposed, where holders were only required to declare profits from their trading operations without having to present their cryptoholdings. These rules will further apply to custodial providers and cryptocurrency exchanges, which will also have to provide this data to the Spanish tax authorities.
Cryptocurrency transactions must also be reported, including origin and destination addresses, the type of cryptocurrency, and the value associated with it.
However, the document establishes a minimum amount at which taxpayers will be required to provide this data. If a citizen’s cryptocurrency assets do not exceed 50,000 euros (52,854 US dollars), then there is no obligation to provide this information to the tax authorities.
Cryptocurrency tax issues
The Spanish tax authorities are trying to describe a new model that includes cryptocurrencies, after problems with the legality of the 720 model, which was related to the taxation of property and goods located outside the country by citizens, and was declared partially illegal by the European Union due to the severity of its penalties. .
With these new definitions, the Spanish authorities are now on their way to creating the 721 model, which will define all the obligations of cryptocurrency holders inside and outside the country. The rules, if approved, will apply from 2023, but subject to changes made during 2022.
The Bank of Spain has also been active in registering Virtual Asset Service Providers (VASPs) operating in the country. The cryptocurrency needed to operate in the country already includes 17 exchanges and custodial providers, but some big names in the crypto industry are yet to be registered.
What do you think of the new crypto rules proposed by the Spanish Treasury? Tell us in the comments section below.
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