Spain Has Approved A Law Mandating Citizens To Disclose All Cryptocurrency Assets.

Users with crypto assets valued at over 50,000 euros are required to declare these assets by March 2024.

Spain citizens will be required to declare their crypto assets located outside Spain in accordance with new laws regulating the taxation of virtual assets. In this context, the Spanish Tax Agency (Agencia Tributaria) had published regulations regarding tax declaration for overseas virtual assets in the official state gazette Boletín Oficial del Estado on July 29, 2023. The declaration process will commence on January 1, 2024, and conclude on March 31, 2024. Individual and corporate taxpayers will need to declare the amount of funds in their overseas crypto accounts as of December 31, 2023.

Individuals possessing crypto assets valued at over 50,000 euros will be subject to the obligation to declare their overseas assets. Investors storing these assets in wallets will use the regular asset tax form to make the disclosure. This new regulation comes at a time when Spain is intensifying efforts to collect taxes from local crypto asset holders. In April 2023, warnings were sent to 328,000 individuals who had not paid crypto taxes for the 2022 fiscal year, representing a significant increase compared to 150,000 warnings in 2022.

The country is making efforts to regulate cryptocurrencies to keep them under control. In October, the Spanish Ministry of Economic Affairs and Digital Transformation announced that the Cryptocurrency Market Regulation would come into effect in December 2025, leading comprehensive crypto regulation in the European Union. Similarly, in November, the Spanish National Securities Market Commission opened its first case against a technology provider for violating crypto advertising rules.