• According to the Ministry of Finance of Spain, users are required to provide data about assets that they have in bitcoin or other cryptocurrencies.
• Numerous taxpayers already have received government requests for information about their assets.
• The wealth tax is applied to digital assets at a minimal rate of 19%.

Spanish authorities require investors and users of Bitcoin and other cryptocurrency to report their possessions. These are the laws that regulate the storage and sale of crypto assets in this country.

According to The Objective, the Spanish website has reported that tax authorities are now requesting detailed information about cryptocurrencies held by the public over the past four fiscal years.

Although the government agency already began to mail taxpayers the requests for information about the fiscal years 2017-2018, it has yet to submit a form including this information in its annual income statement.

The letters were sent to only a handful of contributors so far. All those required to provide information must disclose the balances of cryptocurrencies for the past four years and the amount each year.

The Flipside

• Wealth Tax is an income tax that is levied upon property and rights. It is administered by autonomous communities. You can find out the value of the assets owned by the taxpayer, which includes cryptocurrencies.

This law, the Law of Prevention and Fight against Tax Fraud, was the inspiration for the Spanish government’s new rule.

According to the lawyer specialized in Crypto Legal Consulting, Jesús Lázaro, the delivery of information to the Spanish Treasury is mandatory.

Because of difficulties in accessing the information from Spain, taxpayers will be forced to report it.

“The Treasury puts all pressure on taxpayers because it doesn’t have any information regarding cryptos,”
says Cárdenas.

It has no information other than the income it receives from the banks to the exchanges.
The expert can be added.

This information can be requested by the state Tax Agency or the regional tax authorities. This is important and sensitive information that the Spanish Treasury needs. It doesn’t matter if the taxpayer declares it.

Are certain taxpayers being investigated for criminal activity?
The Spanish government requests information regarding digital assets. This is to obtain information about users’ possessions of cryptocurrency. However, it also wants to have greater control over crypto markets.

To document investigation of cybercrimes, such as money laundering and other financial crimes, authorities must gather sufficient information. Without this, open court cases can be lost.

However, the Spanish tax authorities have the ability to track the financial moves of companies and individuals using bank data. They can also see how much money has been received by exchange-operating companies.

What You Need to Care About

• Many countries across Europe have cryptocurrency taxes. Switzerland, Norway, Liechtenstein and Switzerland are the other countries that have cryptocurrencies tax.

Taxation on cryptocurrency assets in Spain follows a progressive approach with a minimum taxable amount of 700,000. Those who own crypto assets for € 6,000 euros or less, must pay a tax of 19%.

Then for the next € 44,000, 21% must be paid and taxpayers with assets worth up to € 150,000 pay 23%. Finally, those who own more than € 200,000 in cryptocurrencies pay 26%.

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