The Spanish Treasury has unveiled a new cryptocurrency tax model with balance reports.
The Spanish Treasury has published a fresh set of rules for disclosing and taxing bitcoin holdings in Spain. The new rules require taxpayers to report any cryptocurrency holdings, their value in euros, the nature of any transactions, and the origin and destination addresses of any payments to the tax authorities. With its taxation system, Spain is getting stricter with its bitcoin owners. The Spanish Treasury has published a new set of rules that will be applicable to cryptocurrency users and operators and impose what some may perceive as onerous responsibilities. The Ministry of Treasury’s new laws, which are now under review and need to be approved, may require cryptocurrency owners to disclose their holdings.
Contrary to the earlier plan, holders are now required to reveal their crypto holdings as well as the earnings from their trading operations. These rules will also apply to bitcoin exchanges and custody services because they are required to transmit this data to the Spanish tax authorities. Cryptocurrency transactions also need to be documented, including the sort of cryptocurrency used, its value, the origin and destination addresses, and other information. The agreement, however, establishes a basic level at which taxpayers are required to give this information. The value of a citizen’s cryptocurrency holdings is not required to be disclosed to the tax authorities if it is less than €50,000 ($52,854).
The Spanish government is currently working to create a Model 721 that will outline all of the obligations for cryptocurrency owners both within and outside of the nation. If the regulations are accepted, they will be put into effect starting in 2023 while taking the moves made in 2022 into consideration. In addition, the Bank of Spain has been active in registering VASPs doing business in the nation. Although 17 exchanges and custody providers have already registered with the crypto registration, which is necessary to function in the nation, several well-known figures in the crypto business have not.