Should Spanish Bitcoin Owners Disclose Their Holdings to the Treasury?
Cryptocurrency taxation is always a complex and controversial topic. This is especially true in Europe, as there are no unified guidelines to speak of. In Spain, the question as to whether or not Bitcoin needs to be taxed is a hot topic right now. For now, it seems there is no reason to report any Bitcoin-related gains, losses, or holdings, although the country’s Treasury feels differently about that.
SPAIN’S TREASURY PROBES BITCOIN EXCHANGES
As is the case with all other European countries, Spain has no official regulation in terms of Bitcoin taxation as of right now. With the ECB not looking to regulate this industry, it is up to individual countries to make their own rules in this regard. Whether or not any country will do so is a different matter altogether.
In Spain, the topic of Bitcoin taxation is a pressing matter. With tax season on the horizon, a lot of Spanish Bitcoin holders are wondering if they need to report their holdings to the country’s Treasury. As Bitcoin is not a tangible asset in the eyes of the Treasury, there should not be any tax filings to speak of.
However, it is evident the country’s authorities are looking into Bitcoin holders. With exchanges not being subject to the same strict rules as banks, it is only normal that the government wants to keep a close eye on things. As of right now, Spanish trading platforms are not obligated to cooperate with the Public Administration when it comes to customer data.
If an exchange were to share customer information with Spain’s treasury, the company would be breaking a professional agreement. This could have legal ramifications, although there is no precedent for such actions in Spain. That doesn’t mean the situation will not change in the future, but there isn’t much to be concerned about just yet.
One thing to keep in mind is that Spain’s Tax Agency has probed local exchanges for customer information related to cryptocurrency holdings. Whether or not this will have any repercussions for the average Spanish consumer remains anybody’s guess. Not declaring cryptocurrency holdings as a consumer isn’t illegal, but it may be in people’s best interest to share this information regardless.
It will be quite interesting to see how the Bitcoin taxation situation in Spain evolves in the coming months and years. As of right now, the Treasury seems actively interested in probing exchanges, although it should not necessarily expect much cooperation. Even so, this may very well hint at future regulation in this regard.