Spain has recently introduced a new law to strengthen oversight on cryptocurrency tax compliance. The directive, known as DAC8, is set to be implemented by January 2026 and will enable authorities to exchange data on cryptocurrency assets held on international exchanges. This move will allow the Spanish tax agency to seize these assets to collect payment for tax debts.
Under DAC8, virtual asset service providers will be required to report transaction data and user holdings to the tax agency. Additionally, Spanish citizens with accounts on crypto exchanges within the EU or countries with agreements with the EU will have their data shared with the Spanish tax authorities.
The main goal of DAC8 is to ensure compliance with tax laws in the EU, as cryptocurrencies present unique challenges due to their decentralized nature. The directive will facilitate the exchange of information on crypto transactions and holdings on an annual basis.
One of the key provisions of the draft law is the ability for the tax agency to seize cryptocurrency holdings of individuals with tax debts. This extends to other digital assets as well, broadening the agency’s scope beyond traditional bank accounts.
Cryptocurrency attorney Cris Carrascosa, who was involved in drafting the project, emphasized the importance of public-private collaboration in creating regulations that address evolving issues like cryptocurrency. She believes that this approach is essential for passing fair, sensible, and effective laws.
DAC8 is expected to generate over 2.4 billion euros in taxes across Europe with its enhanced level of scrutiny. The EU’s Taxation and Customs Union anticipates that the first data exchanges will take place by September 2027 for the reporting year 2026.
In conclusion, Spain’s new law on cryptocurrency tax oversight reflects the growing importance of regulating digital assets in the financial landscape. By aligning with European directives, the country aims to ensure compliance with tax laws and enhance transparency in the cryptocurrency sector.