Holders Of Cryptocurrency In Spain Will Have To Identify Themselves
Spain News
Published: 25 October 2018 16:20 CET
Updated: 25 October 2018 18:20 CET
Spanish politicians have approved a draft anti-fraud law, which would mean that any residents of Spain holding cryptocurrency would need to disclose it.
According to a recent report by Spanish newspaper ABC, the country’s tax man now has his sights firmly set on those who own digital currencies, specifically Cryptocurrency such as Bitcoin. It’s thought that the proposals would help generate around €850 Million in extra tax revenue for the government.
Under the proposed legislation, residents would not only need to reveal their offshore assets including property and other financial assets in their annual asset declaration to the Agency Tributaria, but also any digital currency they hold and its value.
At the moment, any residents with offshore assets including real estate and investments greater than €50,000, have to file an asset declaration each year known as the ‘720 Asset Declaration’.
Despite the new draft legislation, Spain has seen cryptocurrency in a positive light over the past year or so. In February the central bank of Spain, Banco de España and regulators Comisión Nacional del Mercado de Valores, issued a joint statement declaring that cryptocurrency was not legal tender and as such was not subject to traditional methods of financial regulation.
Although cryptocurrency is not seen as legal tender, any profits derived from transactions using the currency are taxable. Transactions using the digital currency are not subject to VAT at this time either.
It’s been suggested that the Spanish government is keen to attract cryptocurrency firms to the country and as a result would be preparing regulation for the industry in the near future.
