The Spanish government and the Ministry of Finance have published guidelines for a new tax collection plan for Bitcoin and cryptocurrencies, which is still in the study and development phase. At the moment, none of these measures have any practical effect.
The State Tax Administration Agency, an entity attached to the Ministry of Finance of Spain, presented the general guidelines of a new tax collection plan, called Annual Tax and Customs Control Plan, which will be studied throughout this year, and therefore, has not been approved in the country.
The fundraising project, which is still in the evaluation, analysis and study phase, proposes to include fiscal and tax obligations for commercial transactions and operations carried out with Bitcoin (BTC) and other cryptocurrencies, within the market.
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Lines of action of the tax proposal
For tax reporting purposes, the state agency aims to require taxpayers, exchanges, cryptocurrency exchanges, and other custodians and financial services companies with cryptocurrencies and digital assets to provide detailed information about their transactions and business operations. The methodologies that the agency will use to obtain this information are still under analysis and development.
Links with companies and family
The proposed tax collection plan also intends to authorize investigations to gather information related to companies linked to a taxpayer, as well as to his or her family group. According to the authority, if the tax collection plan is approved, the additional information will be used to jointly evaluate the economic operations carried out with cryptocurrencies, and all the effects that these may cause or that may be derived with the intention of “reducing” the declared income or bases.
It's just a fundraising proposal
Given the uncertainty that the publication of this plan is generating, it is important to highlight that, for the moment, It is not approved for use in the country, so only the laws in force until now continue to apply. In this sense, in Spain, users, investors and holders of cryptocurrencies and digital assets must only declare capital gains or losses in the IRPF, “income”, when there is an exchange of any cryptocurrency and there is a variation in the price compared to the day of its purchase. This according to the laws in force at the date of this publication.
In the case of Bit2Me, at the moment, the cryptocurrency exchange does not provide regular information to the Treasury about its operations with cryptocurrencies and digital assets. In fact, the Treasury only has access to the information of personal banks and the banks that Bit2Me uses to receive and manage funds in euros (fiat or fiduciary money).
Use and adoption of new technologies
The State Tax Administration Agency is also promoting the creation of tools and solutions based on technologies such as Artificial Intelligence (AI), Big Data and data mining. The implementation of these technologies will help the entity to reinforce existing tax controls, to dismantle the false figures of “non-residents” in Spain. This was reported by the Ministry of Finance through its Twitter account.
If you want to know about the tax rules in force in Spain, at the time of this publication, visit our article on Bit2Me Academy, Taxes: Treasury and Bitcoin, what to declare in Spain for having cryptocurrencies?. From this article, you can also book a personalized tax consultation with the tax and cryptocurrency expert Jose Antonio Bravo.
Important: This information is correct as of today, February 9, 2021, but legislative changes may occur in the coming months. We will be on the lookout to keep you always informed. If you have any other questions, let us know 😉”.
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