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Spain Reinforces Crypto Rules: Citizens Must Declare Foreign Holdings On Tax Forms

Published 28/11/2023, 14:53
© Reuters.  Spain Reinforces Crypto Rules: Citizens Must Declare Foreign Holdings On Tax Forms

Benzinga - Spanish residents who hold any crypto assets on any non-Spanish platforms will be required to declare the assets by Mar. 31, 2024.

What Happened: According to CoinTelegraph, Agencia Tributaria, or The Spanish Tax Administration Agency, published a tax declaration form for virtual assets abroad, Form 721 on its website.

It was first revealed in the Boletín Oficial del Estado, the Kingdom of Spain’s official state gazette, on July 29, 2023.

The form has a submission period starting from Jan.1, 2024, and ending on the last day of March. Individual and corporate taxpayers will have to declare crypto accounts’ funds stored abroad as of Dec. 31, 2023. Assets that are stored in self-custody wallets must report their holdings through the standard wealth tax form 714.

Meanwhile, those with foreign holdings of crypto assets exceeding around $55,000 on individuals' balance sheets will only be required to provide a declaration.

Also Read: Crypto Investment Is Hitting Records: These 5 Coins Top The List

Other Measures By Spain: Spain has ramped up efforts to charge local holders of crypto assets as it seeks to proactively move with regulations governing crypto. In April 2023, the agency issued 328,000 warning notices to non-crypto taxpayers. The total number of notices in FY22 expanded by 40% annually to 150,000 warnings.

Spanish Ministry of Economy and Digital Transformation announced in October that the first comprehensive European Union crypto framework (MiCA regulation) is seen coming into effect in December 2025 which is six months before the official deadline.

Spain takes the first spot in Europe for the maximum number of crypto ATMs with 231 machines which represents around 15% of the total amount. Globally, it stands in the fourth position.

Read Next: Crypto Space Gets A Boost With European Banking Authority And ESMA's Proposed Regulations

Image: Pixabay

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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