- Spain’s tax agency requires citizens to disclose crypto holdings over €50,000 held on foreign platforms, with declaration period spanning from Jan 1, 2024 to April 1, 2024
- The move aligns with Spain’s recent push to ensure effective taxation of cryptocurrency holders, including sending out 328,000 warning notices in 2022
- Spain exhibits growing interest in crypto sector, with platforms securing licenses and plans to implement EU’s Markets in Crypto Act (MiCA)
Spain mandates disclosure of foreign-held crypto assets over €50,000 for tax purposes. Spanish authorities have demanded that citizens must disclose their crypto holdings surpassing $55,000 held on foreign platforms. The tax agency introduced Form 721, a declaration form specifically designed for virtual assets held abroad.
What is Required
Individuals and businesses impacted by this directive must disclose their crypto holdings held abroad as of Dec 31, 2023. The declaration period spans from Jan 1, 2024 to April 1, 2024. Meanwhile, those who self-custody their assets must report their holdings through the standard wealth tax form 714.
Spain’s Growing Interest in Crypto
The move aligns with the country’s recent push to ensure effective taxation of cryptocurrency holders within its jurisdiction. In April, the tax agency dispatched 328,000 warning notices to individuals liable for crypto taxes for the 2022 fiscal year. During the past year, Spain has exhibited a growing interest in the crypto sector with plans to accelerate the implementation of the European Union’s Markets in Crypto Act (MiCA). Consequently, crypto platforms like Coinbase, Kraken and Crypto.com have secured regulatory licenses from Spanish authorities, reflecting the country’s commitment to fostering a regulated crypto environment.
Global Crypto Tax Crackdown
Outside of Spain, tax agencies in the UK and the US are also making significant efforts to tax crypto holders under their jurisdiction. In the US, the Internal Revenue Service (IRS) seeks information about crypto users from crypto platforms. On the other hand, the UK government revealed plans for taxpayers to report crypto taxes separately from next year.
