Spanish Treasury Introduces New Crypto Tax Model Featuring Balance Reports – When it comes to cryptocurrency holders, Spain is tightening its taxes system. The Spanish Treasury has put up a new set of regulations that will apply to users and operators of cryptocurrencies and impose what some may deem to be excessive duties.
The new regulations proposed by the Ministry of Treasury state that cryptocurrency owners may be required to disclose their holdings of cryptocurrencies and their value in euros. These regulations are still being reviewed and must be approved.
Also Read: Russia to Trial Digital Ruble Settlements for Real Estate Deals
This is distinct from the previous proposal, where holders would only have to disclose the profits from their trading activities and were not required to disclose their crypto holdings. Custody providers and cryptocurrency exchanges will also be subject to these regulations because they must submit this information to Spanish tax authorities.
Additionally, cryptocurrency transactions must be reported, including the type of cryptocurrency used and its related value as well as the origin and destination addresses.
However, the document specifies a minimal threshold at which taxpayers must provide this information. There will be no obligation to disclose this information to the tax authorities if the citizen’s cryptocurrency holdings are less than €50,000 ($52,854).
After having issues with the legality of Model 720, which dealt with taxing goods and properties held outside of the country by citizens and was partially deemed illegal by the European Union due to the severity of its fines, the Spanish tax authorities are attempting to describe a new model that incorporates cryptocurrencies.
The Spanish government is now working to create a Model 721 that will outline all of the obligations for cryptocurrency owners both inside and outside of the nation. If the rules are accepted, they will be put into effect starting in 2023 while taking the movements made in 2022 into consideration.
Also Read: Cardano Vasil Hard Fork Postponed to Allow for More Testing
Virtual asset service providers (VASPs) that are based in Spain have also been actively registered by the Bank of Spain. Although 17 exchanges and custody providers have already registered with the crypto registration, which is necessary to function in the country, several well-known figures in the crypto business have not.
