The Ministry of Finance in Spain is planning to expand its authority to confiscate cryptocurrencies and non-fungible tokens (NFTs) as part of a new tax reform initiative.
According to reports from the Spanish daily newspaper El Economista, the Ministry of Finance is preparing to introduce a new tax reform that would give it the power to seize digital assets such as cryptocurrencies and NFTs in cases where taxes are not paid.
The proposed reforms to the General Tax Law, particularly Article 162, would allow the local tax agency to seize cryptocurrencies in the event of a user’s outstanding debt. In addition, changes to the General Collection Regulations are being considered to facilitate the seizure of cryptocurrencies.
El Economista also mentioned that the ministry is already aware of taxpayers’ cryptocurrency holdings and has made it mandatory for individuals and companies to declare any crypto assets held abroad starting this year.
Although specific details about the timeline for the initiative were not provided in the report, Spain has been at the forefront of implementing stringent tax regulations on cryptocurrencies in Europe. Taxpayers are required to report profits or losses related to cryptocurrencies in their personal income tax filings.
Furthermore, individuals with crypto holdings exceeding €50,000 are obligated to declare these assets for wealth tax purposes by March of this year. Those using self-custodial wallets like MetaMask or Ledger can use Form 714 for declaring their crypto assets in the wealth tax form.
In a previous report by crypto.news, it was mentioned that Spain’s tax regulator issued over 325,000 warnings to residents who failed to report their cryptocurrencies in 2023, a significant increase from the 150,000 warnings issued in 2022.
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