Spain Gives Consent To Crypto Bill, Demands Crypto Owners To Divulge Holdings

The government of Spain has purportedly permitted a bill that mandates digital asset owners to unveil their cryptocurrency holdings and any gains on their virtual assets.

According to the reports of numerous Spanish news outlets, Maria Jesus Montero, Spain’s Finance Minister and the government’s spokesperson, mentioned that the aforementioned bill is part of comprehensive regulation to crack down on tax deception. The bill was sent to the Spanish Congress of Deputies on Tuesday and will now go to parliament for discussion and final approval.

Montero elucidated that the bill will add to the work already being carried out by tax authorities. Nonetheless, he did not mention any particulars about how the rules will be implemented. It is one of the newest efforts by the Spanish government to increase tax revenue amidst a critical COVID-19 pandemic-driven financial catastrophe.

Furthermore, the Spanish tax authority, the Agencia Estatal de Administración Tributaria (AEAT), started sending out tax notices in the month of April to prompt virtual asset owners of their tax requirements.

As per Global Legal Insights, capital gains from the sale of digital assets by a resident of Spain are taxed between nineteen percent and twenty-three percent. The higher rate applies to gains in excess of fifty thousand Pounds (around fifty-eight thousand USD). Furthermore, the exchange between virtual currencies and euros is VAT-exempt.