The Spanish treasury will soon wield the authority to seize cryptocurrency assets to settle taxpayer debts, as part of upcoming reforms to the nation’s tax laws. Proposed in 2021, the Spanish tax watchdog, Agencia Tributaria, is set to designate digital asset entities as tax collection agents.
This mandates these firms to enforce embargoes on their customers’ crypto holdings and collaborate with authorities as directed by the government—a responsibility previously reserved for credit companies or traditional banks.
Under these reforms, Spanish crypto traders will now be obligated to declare assets held in foreign countries. Authorities will be empowered to leverage crypto tax statements dating back to 2021 to facilitate the collection of outstanding taxes.
RELATED- Understanding Crypto Regulation
The recent issuance of a royal decree by the Spanish government solidifies the new responsibilities of crypto firms. However, the rapid implementation of these measures poses challenges for regulators striving to align with the sweeping crypto regulations emerging across the European Union (EU).
Last October, the Spanish Ministry of Economy and Digital Transformation announced that the EU-wide Markets in Crypto-Assets Regulation (MiCA) would be enforced in Spain by December 2025—six months ahead of the official deadline.
Spain has positioned itself as a frontrunner in crypto regulation within Europe, having been among the first EU countries to institute tax controls on cryptocurrency.
The nation mandates crypto traders and holders to disclose personal crypto income and holdings, establishing a robust regulatory framework in the evolving landscape of digital assets.