Spain will confiscate cryptocurrency to cover tax debts


The Ministry of Finance in Spain has made changes to the tax system, granting financial institutions the right to collect taxes on behalf of the government.

The main goal of the reform is to provide the Spanish Tax Agency with the ability to detect and seize digital assets from taxpayers with unpaid debts.

The latest royal decree, which came into effect on February 1, expands the circle of individuals authorized to collect taxes. The new rules temporarily apply to banks, savings banks, and credit unions, and are also planned to strengthen measures against tax evasion.

Banks and electronic money institutions may be required to provide reports on all card transactions, signaling a tough approach to combating financial violations.

Residents of Spain holding cryptocurrency on foreign platforms must declare their assets to tax authorities by the end of the next month. The period for filing declaration 721 began on January 1, 2024, and will last until the end of March.

However, the obligation to declare foreign assets applies only to individuals whose balance exceeds 50,000 euros (approximately 54,000 US dollars) in cryptocurrency. Individuals using individual wallets must also report their assets using the standard property tax form 714.

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