😵‍💫 Spanish tax evaders will have their crypto confiscated

😵‍💫 Spanish tax evaders will have their crypto confiscated

The Ministry of Finance is in the process of revising Article 162 of the Tax Code to enable the seizure of digital assets by the government to settle tax debts.

⚔️ Taking a tough stance against tax evaders is the Spanish king himself: a corresponding decree was issued on his behalf, which came into effect on February 1st.

🔍 The funny thing is that previously information about tax debts was only provided by banks and credit cooperatives dealing with fiat money. And now, the regulator plans to involve banks and organizations dealing with digital currencies.

⏱ Residents of Spain, who own crypto assets on non-Spanish platforms, must declare them to the tax authorities by the end of March. Individual and corporate taxpayers are required to disclose the amount of funds held in their foreign crypto accounts as of December 31, 2023.

👍 ...But there is good news too: individuals should only do this if the balance in their account exceeds $54,000.

💼 Those who store their assets in self-custodial wallets must declare their assets through the standard Wealth Tax Form 714.

💸 All this is happening against the backdrop of the government's efforts to create a comprehensive framework for managing crypto. In October, the Ministry of Economy and Digital Transformation of Spain announced its intention to adopt the "Regulation of Crypto Asset Markets" (MiCA), which is the first all-encompassing framework in this field in the European Union. The implementation of MiCA in the country is planned for December 2025, six months before the official deadline.

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