Spain’s Crypto Users to Declare Digital Assets on Foreign Platforms as Tax Agency Updates Guidelines

cryptonews.com:

Spain’s tax administration agency, popularly called Agencia Tributaria has released new rules governing digital asset reporting in the country that will see holders declare their foreign-held assets.

The tax agency released form 721, a tax reporting form for users that hold assets in non-Spanish exchanges. Per the announcement, the submission period for the form will kick off on Jan 1 2024 with a deadline on March 31, 2024.

Corporate entities and individuals will be required to declare their holdings according to their portfolios in their appropriate forms. While firm 721 is required for non-Spanish exchanges, citizens who utilize self-custody wallets are to report their holdings using form 714, the standard wealth tax form.

The benchmark for individuals under the new regulations starts from users holding over €50,000 approximately $55,000 in foreign assets.

Spain has been on course to roll out wider digital asset tax rules after the government began a crackdown to stop the under-reporting of digital asset holders in the country.

In April, the country issued 328,000 notices to residents who failed to pay their digital asset taxes the previous year with the agency still unsatisfied with current figures despite a year-on-year (YoY) growth in the past three years.

This year’s unpaid notices grew by 40% to 328,000 while 2022 students stood at 150,000, a massive jump from 15,000 notifications in 2021.

“The reason for the gradual growth is the increasing information that the Spanish Tax Agency has about operations with cryptocurrencies, and that information will be expanded next year with the new reporting obligations planned for crypto exchanges.”

A major challenge for regulators in taxing digital assets has been the initial