Spain Introduces Mandatory Disclosure of Crypto Holdings by Taxpayers

The Ministry of Finance in Spain

The Ministry of Finance in Spain has announced that all taxpayers should declare their bitcoin and other cryptocurrency holdings.

The Spanish tax agencies have started to request disclosures of cryptocurrencies holdings by the public for the past four fiscal years.

The letters sent out to targeted individuals require that the recipient declare their cryptocurrency balances specifying the annual amount.

The new directive by the Spanish administration is under the law on prevention and the fight against tax fraud, approved this year.

A cryptocurrency legal consultant, Jesús Lázaro, says that the tax disclosure on digital assets to the government is mandatory.

Lázaro adds that the government was soliciting information from the public because it was difficult to track the information on the privately owned assets.

Spanish tax law applies a progressive method of taxation of crypto assets, with those having less than €6000 paying a 19% levy.

The subsequent €44,000 are taxed at 21%, and those with up to €150,000 pay 23%. Holders of more than €200,000 worth of cryptocurrency are subjected to a 26% tax.

Source: Dailycoin

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