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The Spanish Ministry of Finance aims to improve its authority to seize cryptocurrencies and non-fungible tokens (NFTs) as part of a new tax reform.
Spain's Finance Ministry is preparing to push through a new tax reform that would give it new powers to seize cryptocurrencies and digital collectibles in case of non-payment of taxes, according to the Spanish newspaper. The Economist.
The report says that the ministry has proposed reforms to the General Tax Law, specifically Article 162, which would empower the local tax agency authority to confiscate cryptocurrencies when enforcing a user debt.
Additionally, modifications to the General Collection Regulations are suggested to enable the seizure of cryptocurrencies. El Economista points out that the ministry already has information on taxpayers' cryptocurrency holdings, adding that people and companies as of this year are required to declare their cryptocurrency holdings abroad.
However, the report does not provide specific details on the initiative's timeline.
Spain has taken a pioneering role among European countries by applying comprehensive tax controls on cryptocurrencies. Taxpayers are required to pay taxes on cryptocurrency-related gains or losses on their personal income tax returns.
Furthermore, the declaration of cryptoassets for wealth tax purposes must be done before March of this year. This reporting obligation applies specifically to those whose cryptocurrency holdings exceed €50,000. For individuals with crypto assets stored in self-custody wallets (such as MetaMask or Ledger), the existing estate tax form, Form 714, is designated for reporting purposes.
As previously reported by crypto.news, Spain's tax regulator issued more than 325,000 warnings to residents who failed to declare their cryptocurrencies in 2023, a significant increase from the 150,000 warnings issued in 2022.
