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Spain is making a bold regulatory move by adopting a sweeping new law that empowers its tax agency to seize digital assets and compel virtual asset service providers (VASPs) to report cryptocurrency holdings. Aligned with the European Union’s Directive on Administrative Cooperation (DAC8), the measure positions Spain at the forefront of crypto tax enforcement in Europe and is slated to take effect in January 2026.
Increased Transparency, Global Reach
The law requires VASPs within Spain and cooperating third countries to report all crypto holdings and transactions associated with Spanish taxpayers. Authorities will gain access to this information annually, enabling more precise tracking and enforcement against tax evasion using digital assets.
DAC8’s implementation marks a paradigm shift in European tax oversight, particularly for crypto markets, where blockchain’s decentralized and pseudonymous nature has complicated traditional tax enforcement.
Asset Seizure Powers Extended to Digital Wallets
In a move that significantly expands the enforcement arsenal of the Spanish Tax Agency (Agencia Tributaria), the new framework includes provisions to seize cryptocurrency and other digital assets from individuals with unresolved tax debts. Until now, such seizures were limited to assets held in traditional bank accounts.
This power is expected to have widespread implications for tax compliance among crypto users and digital nomads with tax obligations in Spain.
Public-Private Collaboration in Regulatory Design
The legislation benefited from input by legal and crypto professionals, including Spanish attorney Cris Carrascosa, who emphasized the need for regulatory fairness in fast-evolving technical domains.
“Public-private collaboration in drafting regulations that affect changing issues, such as innovation, but which are also highly technical, is the only way to pass fair, sensible, and effective laws,” Carrascosa stated.
Revenue Projections and EU Coordination
DAC8, the EU directive underpinning this law, is projected to generate more than €2.4 billion in additional tax revenue across the bloc. The first international exchange of information on crypto asset holdings will occur by September 30, 2027, for the reporting year 2026.
Spain’s proactive stance reflects a growing EU consensus: crypto must no longer operate in the shadows to maintain fiscal sustainability and tax fairness.
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