Spanish citizens will have to disclose crypto holdings above 50,000 euros (about $55,000) on foreign platforms for tax purposes from January next year, according to an update from Spain’s tax authority, Agencia Tributaria.
The tax authorities introduced Form 721, a tax return form specifically designed for virtual assets held abroad. The form would require legal residents and citizens to officially report their crypto assets on non-Spanish platforms for tax purposes.
Individuals and companies affected by this directive must disclose their crypto holdings abroad from December 31, 2023. According to the regulator’s website, the declaration period runs from January 1, 2024 to April 1, 2024.
Meanwhile, those who manage their assets themselves must report their holdings using the standard wealth tax form 714.
This move is in line with the country’s recent attempt to ensure effective taxation of cryptocurrency holders within its jurisdiction.
In April, the tax authorities sent 328,000 warnings to individuals liable for crypto taxes for the 2022 fiscal year. Local media reports indicate that this number represents a 40% increase in the number of notifications issued by authorities compared to the previous year .
Over the past year, Spain has shown 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 such as Coinbase, Kraken and Crypto.com have obtained legal licenses from Spanish authorities, reflecting the country’s commitment to promoting a regulated crypto environment.
Crypto tax
Outside of Spain, tax authorities in Britain 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 such as Kraken and Coinbase. CryptoSlate reported that Kraken said it would provide the IRS with profile information and transaction data for customers who transacted more than $20,000 in any year between 2016 and 2020.
On the other hand, the UK government has unveiled plans for taxpayers to separately report crypto taxes starting next year.