Spanish Government Embarks on Bill to Requires Crypto Investors to Disclose Holdings and Income
The Spanish government has embarked on a bill that may require its citizens to disclose their crypto income or holdings with the country’s tax agency. Reuters, which first reported on this development, noted that the bill in question aims at tracking down tax fraud/evasion amongst Spain’s crypto investors or users.
According to Spain’s government spokeswoman, Maria Jesus Montero, this piece of legislation is currently in progress and set to play a major role in harmonizing crypto tax reporting. If passed into law, crypto holders in Spain will have to disclose their crypto exposures within the rules of holding the burgeoning digital assets.
While the details of the proposed legislation are still scanty, this is not the first time Spanish authorities are making an effort to narrow down on crypto reporting. In 2018, they had embarked on similar efforts with the focus being identification; Montero highlighted that the Spanish government wanted to gain ‘identification of the holders and the balances contributed by these virtual currencies.’
She also touched on the tax issue at the time, although not much practicality on implementation followed later,
“It is stated as mandatory that people and companies inform the Tax Agency about this operation.”
However, the newly proposed legislation presents an opportunity to straighten out the ambiguity in Spain’s crypto tax reporting. Concurrently, tax cheats will be nabbed and taken into account based on an established regulatory framework.