Spanish citizens must disclose crypto holdings exceeding 50,000 euros (about $55,000) held on foreign platforms for tax purposes starting January next year, according to an update from Spain’s Tax Administration Agency, Agencia Tributaria.
The tax agency introduced Form 721, a declaration form specifically designed for virtual assets held abroad. The form would require legal residents and citizens to officially report their crypto assets held on non-Spanish platforms for tax purposes.
Individuals and businesses impacted by this directive must disclose their crypto holdings held abroad as of Dec. 31, 2023. Per the regulator’s website, 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.
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. Reports from local media indicated that the number represents a 40% surge in the number of notices the authorities issued compared to the previous 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.
Crypto tax
Outside of Spain, tax agencies in the U.K. and the U.S. are also making significant efforts to tax crypto holders under their jurisdiction.
In the U.S., the Internal Revenue Service (IRS) seeks information about crypto users from crypto platforms like Kraken and Coinbase. CryptoSlate reported that Kraken said it would provide the IRS with profile information and transaction records for customers who transacted more than $20,000 in any year between 2016 and 2020.
On the other hand, the U.K. government revealed plans for taxpayers to report crypto taxes separately from next year.