The Spanish Ministry of Finance has introduced a series of new requirements for the reporting and taxation of cryptocurrency holdings in the country. The new rules include an obligation for taxpayers to disclose to tax authorities all cryptocurrencies they hold and their euro value, including details of transactions with source and destination addresses.
Spanish Finance Ministry Proposes New Crypto Rules
Spain is strengthening its tax regime when it comes to cryptocurrency holders.The Spanish Ministry of Finance has suggested A new set of rules for cryptocurrency holders and operators imposes obligations that some consider excessive. The new rules proposed by the Treasury Department, which are still under review and must be approved, stipulate that cryptocurrency holders may have to disclose their cryptocurrency holdings and their value in euros.
This is different from the previous proposal, where holders are only required to declare the earnings of their trading operations and are not obliged to show their cryptocurrency holdings. The rules will further apply to custody providers and cryptocurrency exchanges, which must also provide this data to the Spanish tax regulator.
Cryptocurrency transactions must also be reported, including source and destination addresses, as well as the type of cryptocurrency and its associated value.
However, the document specifies a minimum amount for which taxpayers are required to provide this data. Citizens are not obligated to provide this information to tax authorities if their cryptocurrency holdings are worth less than €50,000 ($52,854).
Crypto Tax Dilemma
Spanish tax authorities are trying to describe a new model that includes cryptocurrencies as there are questions about the legality of the Model 720, which is related to the taxation of property and goods held abroad by citizens and is Announce Due to the severity of its fines, the EU is partly illegal.
With these new definitions, Spanish authorities are now creating a 721 model that will define all the responsibilities of cryptocurrency holders inside and outside the country. If approved, the rules will be implemented from 2023, subject to changes in 2022.
Spanish banks are also actively registering virtual asset service providers (VASPs) operating in the country.The encrypted registry required to operate in the country has been Onboarding 17 exchanges and custody providers, but some of the biggest names in the crypto industry have yet to sign up.
What do you think of the new crypto rules proposed by the Spanish Ministry of Finance? Let us know in the comments section below.
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