Spain is taking a pioneering step in Europe in 2025 by requiring cryptocurrency exchanges to report their users' balances and all transactions to the Treasury.
The measure is part of an effort to strengthen tax control and combat fraud in a sector that has grown rapidly and where it was previously difficult to track movements.
Exchanges must now report detailed information such as the account holder's identity, the balance in euros and cryptocurrencies, and each purchase, sale, or transfer made during the year. This obligation also applies to foreign platforms that operate with Spanish residents, expanding the scope of tax oversight.
BUY BITCOIN FAST AND SAFEThe regulations respond to the 11 / 2021 and the European directive DAC8, which seek to improve transparency and the automatic exchange of tax information between countries. Although this regulation represents a step forward in preventing evasion, it also raises debate about how to balance oversight with promoting technological innovation in Spain.
Faced with the new regulations, cryptocurrency users must prepare for a new era of tax scrutiny, where transparency will be key and the Tax Agency will have greater access to information about their digital assets.
DAC8: The European directive that redefines crypto taxation in Spain
The DAC8 directive represents a qualitative leap in the way the taxation of cryptoassets is handled throughout Europe, but Spain is at the forefront of its applicationThanks to this regulation, Spanish tax authorities will be able to access reports not only from local platforms but also from foreign exchanges with data links to Spain, ensuring that the location of cryptocurrencies or the type of custody cannot serve as an excuse to avoid taxes.
As for how the new rule is implemented, exchanges are required to submit two key models:
- El Model 172, that reports the total cryptocurrency balance held by each customer as of December 31, expressed in euros and broken down by asset type;
- El Model 173, which explains the Details of all transactions carried out by users: purchases, sales, exchanges, payments and transfersThis means that every cryptocurrency transaction is recorded and accessible to the Treasury, exponentially increasing tax transparency.
This comprehensive approach means that Spain will impose much stricter accountability requirements on exchanges and custodians starting in 2025. Under the umbrella of this national regulation, which incorporates and implements the mandates of DAC8, taxpayers will have a clearer and more supervised obligation to correctly declare their cryptocurrency assets and transactions in their income tax returns.
The Tax Administration will be able to cross-reference information reported by digital intermediaries with individual tax returns, increasing the capacity to detect and correct tax fraud and promoting a culture of compliance that benefits the tax system and, ultimately, society.
ENTER CRYPTO WITH CONFIDENCEHow this measure will affect users and the crypto ecosystem
For the average user, who may have previously considered cryptocurrency transactions to be discreet or even off the tax radar, the reality is changing dramatically. With this regulation, the Treasury will have much more precise and comprehensive control, and therefore, the need to Declaring all cryptocurrency transactions transparently becomes unavoidable.This includes everyday transactions such as transfers to personal wallets, crypto payments, or exchanges between different digital assets.
From a technical point of view, the incorporation of the Model 172 y Model 173 The exchange reporting process requires these platforms to have comprehensive control and registration systems. This act of fiscal and regulatory responsibility becomes a key element for a more mature and serious integration of cryptocurrencies into the formal economyFurthermore, this level of strictness increases legal certainty for users who comply with the law, since the rules are clear and the consequences of opacity or noncompliance will be greater.
On the other hand, this measure could pose a challenge for exchanges operating in the Spanish market, whether domestic or international, as they will need to ensure effective compliance with these reports and collaboration with the Spanish Treasury. This could translate into greater professionalization of the sector and increased user confidence, who will know they are operating in a transparent and regulated tax environment.
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A pioneering Spain and a future with greater tax responsibility
There's no doubt that Spain is at the forefront of European taxation for cryptocurrencies, setting a precedent that other nations will surely follow in the coming years. This effort is not only about increasing tax collection or control, but also about build a more robust, responsible, and trustworthy crypto ecosystem both for users and for the institutions themselves.
The fact that the Treasury can access such detailed reports on balances and each transaction makes Spain a benchmark for tax transparency, capable of combating fraud more effectively and fairly. This ensures that the growth of the digital and crypto sector is not overshadowed by illegality or non-compliance.
For users, the call is to prepare and be aware of the importance of complying with these new tax obligations starting with the next tax season. Ignoring these rules can lead to penalties and legal problems.
Therefore, given this situation, tax education and the use of appropriate tools become essential. Platforms such as Bit2Me offer free solutions such as Bit2Me Tax, that facilitates generate complete and secure tax reports, so users can declare their crypto investments stress-free and continue to leverage the potential of their crypto investments with peace of mind.
