Spanish Treasury Introduces New Crypto Tax Model Featuring Balance Reports
The Spanish treasury has introduced a new series of requirements regarding the reporting and taxation of cryptocurrency holdings in the country. The new rules include the obligation of taxpayers to disclose all of their cryptocurrency holdings to the tax authorities, as well as their value in euros, including details of transactions with the addresses of origin and destination. Spanish Treasury Proposes New Crypto Rules
Spain is sharpening its taxing apparatus when it comes to cryptocurrency holders. The Spanish Treasury has proposed a new set of rules that will apply to cryptocurrency holders and operators, imposing obligations that some consider excessive. The new rules presented by the Ministry of Treasury, which are still being reviewed and will have to be approved, specify that cryptocurrency holders might have to disclose their cryptocurrency holdings and their value in euros.
This is different from what was proposed before, where holders only had to declare the earnings of their trading operations, having no duty of presenting their crypto holdings. These rules will further apply to custody providers and cryptocurrency exchanges that would also have to provide this data to Spanish tax regulators.
Cryptocurrency transactions must also be reported, including the origin and destination addresses, with the type of cryptocurrency and its associated value.
However, the document establishes a minimum amount at which taxpayers would be required to give this data. If the cryptocurrency holdings of the citizen are under the value of €50,000 ($52,854), there will be no duty of presenting this information to the tax authorities. Crypto Tax Woes
The Spanish tax authorities are trying to describe a new model in which cryptocurrencies are included after having problems with the legality of Model 720, which had to do with taxing properties and goods held outside of the country by citizens, and was declared in part illegal by the European Union due to the severity of its fines.
With these new definitions, the Spanish authorities are now en route to creating a Model 721 that would define all of the duties for crypto holders inside and outside of the country. The rules, if approved, will be applied starting in 2023, but taking the movements made during 2022 into account.
The Bank of Spain has also been active in registering virtual asset service providers (VASPs) operating in the country. The crypto registry, required to operate in the country, has already onboarded 17 exchanges and custody providers, but some big names in the crypto industry have not registered yet. Tags in this story Balances, crypto reporting, Model 720, model 721, operations, spanish treasury, tax authorities
What do you think about the new crypto rules proposed by the Spanish treasury? Tell us in the comments section below. Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Wechat to Prohibit Accounts From Providing Some NFT and Crypto Services REGULATION | 1 day ago Bank of Spain Has Registered 17 Crypto Companies, Big Names Still Missing REGULATION | 2 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: Bullish Sentiment Returns to BTC Following Yesterday’s Sell-Off Next articleBiggest Movers: MATIC Climbs 25%, Re-Enters Crypto Top 20 Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"
The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher