Cryptocurrency investors governed by Spain could face mandatory reporting of their holdings for tax purposes under a new draft law the government approved Friday, Oct. 19, local daily news network ABC reports.
Unveiled at a press conference by the country’s finance minister María Jesús Montero, the measures seek to make holders of cryptoassets declare them regardless of whether they are in Spain or offshore.
“It is stated as mandatory that people and companies inform the Tax Agency about this operation,” the publication quotes Montero as saying, including if the holder is a Spanish resident living abroad.
As Bloomberg notes, the penalties involved for incorrect information about a taxpayer’s earnings are severe, consisting of a €5,000 ($5,745) fine for each inaccuracy.
Some member states -– notably Poland – have U-turned on previously-instigated conditions and tax thresholds for cryptocurrency holdings, while others such as Malta and Spain’s neighbor Portugal already have preferential policies.