As published on financemagnates.com, Friday 28 May, 2021.
The Spanish Congress of Deputies has voted in favor of a law that requires Spaniards to report their overseas cryptocurrency holdings through tax filings. According to an official announcement made by the Spanish government (Palacio de la Moncloa), the new ruling goes in line with the current circumstances surrounding the crypto markets.
“In this way, the obligation to report on holding and operating with virtual currencies, both located in Spain and abroad, is incorporated if it affects Spanish taxpayers,” the government added. Additionally, crypto holders should disclose all their transactions performed with their tokens and should inform them through the “720 Form of Declaration of Assets and Rights Abroad about the Possession of Cryptocurrencies Abroad.”
The announcement pointed out that the crypto market should have major control due to its growing popularity. That said, the normative followed the guidelines discussed through “the OECD reports of the Action Plan to avoid the erosion of the tax base and the transfer of profits (BEPS Plan),” the government commented.
Since last year, the law, proposed by the Spanish tax authority (Hacienda), has been cooking in the oven when the Council of Minister granted their approval. However, it needs to overcome another hurdle: ratification before it becomes an official law.
Domestic related companies have criticized the Spanish government’s strict stance on cryptos, as recent statements issued by some lawmakers and even the National Stock Market Commission (CNMV) still argue that investing in digital assets is a risky maneuver for consumers.
A report from elEconomista, a Spanish daily newspaper, pointed out that major hedge funds in Spain, such as CaixaBank and BBVA, are not planning to allocate money into cryptocurrencies, at least in the short term.
“In 10 years it will be much more normal, today we are in the allures, to call it that, in a different way of having exposure to assets and, like everything in life, we have to go step by step. We are not going to complicate our clients with things that we do not control well. Another thing is that in Switzerland, access is given to whoever wants to do it. It is different. We, at the moment, in the portfolios are not planning to make movements in that sense,” Jaime Martínez, Global Director of Asset Allocation at BBVA AM, told the media outlet.