In September 2024, the Spanish Council of Ministers approved a draft bill to transpose the European Union’s Directive 2011/16/EU, known as DAC8, into national law. This initiative aims to enhance administrative cooperation in tax matters, introducing significant changes to the taxation and reporting obligations related to cryptocurrencies.
Key Changes Introduced by DAC8
1. Expanded Reporting Obligations
The transposition of DAC8 mandates that cryptocurrency service providers, including exchanges and wallet operators, adhere to stringent due diligence and reporting requirements. These obligations encompass both resident and non-resident users in Spain, ensuring comprehensive oversight of crypto-asset transactions. The directive replaces the term “virtual currency” with “crypto-asset,” broadening the scope of assets subject to reporting.
2. Recognition of Crypto-Assets as Seizable Property
The draft bill amends the General Tax Law to explicitly classify crypto-assets as assets subject to seizure. This change empowers tax authorities to confiscate cryptocurrencies in cases of tax debts or legal infringements, aligning with the rapid evolution of financial services and payment methods.
3. Alignment with International Standards
By incorporating the OECD’s Crypto-Asset Reporting Framework, DAC8 facilitates the exchange of information on crypto-assets among EU Member States and other jurisdictions. This alignment aims to enhance transparency and combat tax evasion on a global scale.
Implications for Crypto-Asset Service Providers and Users
Service providers must implement robust systems to collect and report detailed information about their clients’ crypto-asset holdings and transactions. Users, both residents and non-residents, should be aware that their crypto-asset activities will be subject to increased scrutiny and reporting to tax authorities.
Next Steps
The draft bill is currently undergoing the public consultation process before being presented to Parliament for approval. Once enacted, Spain will have the necessary regulatory framework to fulfill mutual assistance obligations with EU Member States and other participating jurisdictions in information exchange, in accordance with international agreements.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws and regulations are subject to change. For personalized advice, consult with qualified legal and tax professionals.
