Is Spain Also Joining The Regulatory Forces Against Crypto In 2024?
The Spanish tax authorities don’t want to leave anything to chance in 2023 and 2024; will these be the years of regulation? This has never been more true if the current news is to be believed. Authorities are toughening up and whistling the end of recess from the United States to Japan. Nothing is safe from the prying eyes of the regulator, who wants to know everything about your cryptos, whether they are centralized platforms, the DeFi protocols, or private wallets. While several signals suggested that the climate in Spain was crypto-friendly, it suddenly became a cold shower. Will you be required to report everything beginning January 1, 2024?
Spain is Amending the Law
The Council of Ministers has just concluded on April 4, 2023, at the Moncloa Palace in Madrid. The decision report is released in the press. In order to combat tax avoidance, Spain will amend Law 11/2021 of July 9 on digital assets. Throughout the Iberian Peninsula, new declaratory requirements will develop. And they affect both individuals and businesses.
As a result, from January 1, 2024, residents of Spain and businesses operating on the territory will be required to report all cryptocurrencies in their possession. Even enterprises that are based overseas but providing services in Spain are affected. This legislation applies to the storage, exchange, purchase, sale, and transfer of services for oneself or others.
Spanish Authorities Demand Every Information
The law also states that cryptocurrencies held by a Spanish taxpayer overseas must be disclosed. Essentially, if cryptocurrency has gone through your hands at any point, you must report it. The following is an excerpt from the text: “This obligation also extends to those who were owners or beneficiaries of the aforementioned virtual currencies, or who disposed of them, or who were beneficial owners of them at any time during the year to which the declaration refers, and who had lost the said status as of December 31 of this year.”