The Spanish Ministry of Finance Proposes Tax Reform Allowing Seizure of Cryptocurrencies
The Spanish Ministry of Finance is planning a tax reform that would enable local tax authorities to seize cryptocurrencies and digital assets to settle unpaid taxes. The proposed reform would grant the tax watchdog, Agencia Tributaria, the power to embargo digital assets owned by taxpayers. As part of the reform, electronic money entities have been declared as tax collection agents, meaning they would be responsible for executing embargo actions on customers’ crypto holdings when instructed by the government. The government made the proposal to the European Union in 2021 and plans to implement the reform soon.
Crackdown on Money Laundering and Tax Evasion
In an effort to combat tax evasion and money laundering, the Spanish Treasury will now require taxpayers to declare crypto assets held outside of Spain. The data obtained from these statements will be used to collect outstanding tax debt if necessary. Additionally, the Treasury is considering mandating banks and electronic money institutions to report on all card transactions to further prevent illegal activities.
Spain Implements MiCA Act Ahead of EU Deadline
Spain is working towards implementing crypto regulations and aims to enforce the EU’s Markets in Crypto-Assets (MiCA) Act nationally in December 2025. This is six months ahead of the general deadline for all EU member states. Spain plans to shorten the 36-month transitional period to 18 months to provide greater protection for Spanish investors. The Ministry of Economy and Digital Transformation believes this will offer legal certainty and support the growth of digital assets in Spain.
Spain Explores the Potential of a Digital Euro
The Spanish government is also looking into the introduction of a digital euro, a central bank digital currency (CBDC). The Bank of Spain, along with other European banking institutions, is preparing customers for the potential benefits of a digital euro. The central bank highlights that a digital euro would allow for greater utilization of the advantages provided by the increasing digitalization of the economy and society, complementing physical cash as a means of payment.
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