The Finance Minister’s office in Spain has announced tax reforms. The taxation policy amendments are geared towards granting financial firms the power to collect taxes on behalf of federal taxation agencies. On this account, the Ministry of Finance has expanded crypto trading supervision that will allow state officials to seize cryptocurrency funds from investors as a way to settle outstanding tax payables.
Spanish Finance Minister, Maria Jesus Montero, recently noted that the state department was working on adding legislative reforms to the General Tax Laws with a focus on Article 162.
The legislators are making provisions in the taxation laws that will allow the taxation authority of Spain to identify and confiscate cryptocurrency portfolios held by local taxpayers. The ministry wishes to introduce crypto funds seizure as a settle outstanding tax debts as per local reports.
The proposed amendment is set to take effect on 1st February leading to the expansion of government departments that have the power to collect taxes. Before the new amendments, only banks, saving banks, and credit cooperative firms were mandated to report to the Treasury Department.
Overseas Spanish Investors to Declare Crypto Holdings Before the End of March
The Treasury Department of Spain has issued plans to crack down against tax evasion practices. On this account, the agency has directed regional banks and electronic money services providers to submit reports regarding all card-based transactions.
Analysts opine that regulatory changes are taking place faster discounting the time required for policy implementation. Nevertheless, the government has introduced new policies and legislative amendments at a rapid pace to bring the cryptocurrency sector within regulatory parameters.
Taxation obligations are applicable to crypto holdings equivalent to 50000 euros or $54,000. Self-custodial wallet holders can report reserves as per standard wealth form 714.
Towards this goal, the Ministry of Economy and Digital Transformation confirmed that the Markets in Crypto-Assets Regulations (MiCA) framework will go into effect in December 2025. The announcement has significant importance because MiCA is an EU framework that is set to activate in Spain 6 months before the official target date.
Regulators in Spain have mandated that the citizens who hold cryptocurrency assets on foreign platforms are to report their reserves before the end of next month to taxation authorities. Spanish regulators issued the 721 form for tax declaration on 1st Jan with the last submission date ending on 31st March.
At the same time, retail and commercial investors are directed to declare their foreign holdings in the form of digital currencies till 31st December 2023.
Spanish Embassy Tracking Crypto Airdrops on Social Media
The official X account of the Spanish embassy is reportedly tracking cryptocurrency airdrop notifications. Spanish embassy in Bosnia and Herzegovina is added to the waitlist for airdrop announcements from DeFi projects namely Jupiter and Dymension.
The admins of two Spanish embassies have sent inquiry messages to the aforementioned crypto projects to collect information about the airdrops and other upgrades. Spanish embassy accounts have also posted about various memecoins such as $wen, $Beam, and $PLS.
During the last 24 hours, The Spanish embassy’s social media accounts posted more than 41 comments on various crypto projects such as DeFi 2.0, Frame, Monad, Phantom, Router Protocol, SatoshiVM, Dymension, and StarHeroes. However, more than half of these tweets have been deleted. Pseudonymous X analyst has noted that the Spanish embassy of Bosnia‘s handle has been posting phishing links raising suspicions of hack attempts.