Spain’s New Tax Reform Aims to Seize Crypto Assets

Expanding Control Over Digital Assets

The Spanish Ministry of Finance is implementing a new tax reform to monitor and control the cryptocurrencies and digital assets sector. The reform targets Article 162 of the General Tax Law, allowing the Spanish Tax Agency to identify and seize digital assets, including cryptocurrencies and NFTs, to settle tax debts.

Amendments to the General Collection Regulation

An amendment to the General Collection Regulation proposes the possibility of seizing digital assets in cases of unsettled debt. This follows previous efforts by the Ministry to seize digital assets.

Collaboration with Payment Entities

A Royal Decree approved by the Spanish Government modifies the General Collection Regulations. It requires payment entities and electronic money institutions to collaborate with the Spanish Treasury in collecting tax debt. This extends the obligation to report transactions beyond the banking sector, including electronic money institutions like PayPal and payment institutions like American Express.

Regulating Crypto Assets in Spain

Over the years, the Spanish Government has enforced various crypto regulations to oversee crypto users’ activities. Data from the Bank of Spain shows that over 60,000 million euros in crypto were moved into the country in 2021. In 2023, the richest taxpayers declared over 2,100 million euros in cryptocurrencies.

Implementing MiCA and Reporting Requirements

Spain plans to implement the Markets in Crypto-Assets Regulation (MiCA) six months in advance, in December 2025. Since 2021, taxpayers in Spain have been required to report profits from crypto investments in their income tax returns. Additionally, a reform approved in 2023 requires individuals and companies to annually declare their current and previous crypto holdings and provide transaction details to the Spanish Tax Agency starting January 1, 2024.