The European country where you now have to declare all your cryptocurrency
Spain introduces new measures to stop tax evasion via cryptocurrency…
In a new clampdown, authorities in Spain have closed what was seen as a legal loophole, that just happened to concern cryptocurrency.
The Ministry of Finance in Spain has announced a new anti-fraud law, that’s currently in the draft stages, that has been given the go-ahead. The thinking behind the law is that it will, in the words of Finance Minister Maria Jesus Montero, require “the identification of the holders and the balances contributed by these virtual currencies”.
In short: anybody in Spain who owns cryptocurrency is going to be required to declare it. Furthermore, that applies too if the crypto is held off-shore (in a separate measure as part of the changes being introduced, the Spanish authorities are also expanding the list of tax havens on its radar). Inevitably, the cryptocurrency will then be taxed, as per regular currency.
The Spanish authorities estimate that the new law can raise some 850 million euros in tax receipts, as part of a collection of measures that it’s looking to introduce.
It comes at a time when many European countries are considering their own approach to deal with cryptocurrency. In fact, earlier this month, the broader European Union was revealed to have ICO regulation on its agenda for next year, as an ongoing part of its own work into crypto.
Whether other countries will directly follow Spain’s lead remains to be seen. But certainly, it’s a fair bet that many of its neighbours will be watching with interest.