The Spain government has granted the treasury the authority to seize cryptocurrency assets as part of its strategy to collect taxpayer debts. The move comes as part of proposed reforms to the country’s existing tax laws, with the tax watchdog, Agencia Tributaria, treating digital asset entities as tax collection agents.
Originally proposed in 2021, the reform designates cryptocurrency firms as responsible for embargoing their customers’ crypto assets and cooperating with authorities when required by the government. This extends obligations that were traditionally imposed on credit companies and conventional banks.
Spanish cryptocurrency traders are now obligated to declare any assets held in foreign countries. Additionally, authorities can use crypto tax statements dating back to 2021 to aid in the collection of outstanding tax amounts.
Spain Tax Decree
Last week, the Spanish government formalized these new responsibilities for crypto firms through a royal decree. However, the swift implementation of these measures has posed challenges for regulators trying to synchronize with broader crypto regulations within the European Union (EU).
In October of the previous year, 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 EU deadline.
Spain has been recognized as one of the leading countries in Europe regarding crypto regulation. It was among the first EU members to implement tax controls on cryptocurrencies, mandating that crypto traders and holders declare personal crypto income and holdings. The recent empowerment of the treasury to seize crypto assets further solidifies its commitment to regulating the crypto space.