The government of Spain has passed a new law that limits cash payments to only 1,000 euros. In addition, citizens who possess cryptomites will be obliged to inform the government of their possessions.
The government of Spain approved a new bill that will require citizens to declare their Bitcoin Up to the IRS. In addition to increasing control over cryptomites, the new bill also limits payments made in cash.
According to the Minister of Finance Maria Jesus Montero, the new bill has as its main objective to prevent fiscal evasion. The regulation of cryptomorphs in Spain is not yet completely clarified, but since 2018 the country has been trying to find ways to inspect digital assets much more rigorously.
Citizens of the country who own cryptomotes will be obliged to inform the government about how many digital coins they have and what their earnings are. The law will also require that transactions made outside the country, but affecting Spanish taxpayers, be declared to the IRS.
According to Montero, if the law is passed in the next few steps „It will be mandatory that people and companies inform the Tax Agency about these operations, even those with currency abroad“.
Investors must declare their Bitcoins through the annual declaration of assets, also known as form 720.
The Minister also informed that facing tax evaders is one of the government’s main priorities, and that the IRS plans to use „zero tolerance“ against any fraudulent practice.
To fight tax evasion and corruption the new bill will limit the amount allowed for cash payments. Once the law is passed and takes effect, the limit for cash payments will fall from 2,500 euros to 1,000 euros per transaction.
The Treasury will also expand the list of tax havens based on fiscal equity and transparency in each region. The authorities will also increase the rigor of vigilance for those who owe more than 600 thousand euros to the government, the current limit is 1 million euros.
With this, Spain is joining a number of countries that are increasingly trying to close the siege on Bitcoin transactions, with some countries even looking for ways to track cryptomites with a focus on privacy. However, the cryptomarket continues to prove resilient, despite a high rate of acceptance of these new rules by investors.