Spain Leading Europe's Charge: Crypto Transactions and Balances to be Disclosed by Exchanges Starting from 2025
### Cryptocurrency Regulations in Spain: A New Era of Transparency and Compliance
Starting from 2025, Spain will be implementing new regulations to enhance the tax transparency and combat tax evasion in the cryptocurrency sector. The regulations, based on the European Union's Directive on Administrative Cooperation (DAC8), will have a significant impact on cryptocurrency exchanges and tax reporting in Spain.
Under the new rules, Crypto-Asset Service Providers (CASPs) in Spain, which include cryptocurrency exchanges, will be required to implement enhanced due diligence procedures. This means collecting and verifying detailed information from their clients, particularly EU tax residents, to comply with the Directive's requirements.
Moreover, these CASPs will be obliged to report certain information on crypto-asset transactions to Spanish tax authorities. This information will then be automatically exchanged with other EU Member States where the users are tax residents, promoting transparency and combating tax fraud across borders.
The reporting obligations are extensive and are based on the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF), a standard integrated into DAC8. This represents a revolutionary step in regulating crypto tax reporting as it extends the existing Common Reporting Standard (CRS) by including crypto-asset transactions.
Spain's cryptocurrency platforms will also face penalties for non-compliance, similar to those seen in other countries. The rules come with a phased approach, with most provisions taking effect on January 1, 2026, while EU member states, including Spain, must have adopted compliant rules by December 31, 2025. This timeline means exchanges must prepare well in advance in 2025 to meet all new reporting and due diligence requirements.
DAC8 entails broader tax reporting reforms, such as expanded automatic exchange of tax rulings and enhanced reporting on cross-border arrangements, which although not solely focused on crypto, will impact overall tax transparency and compliance frameworks in Spain.
In summary, by 2025 Spain will be implementing DAC8, obliging local cryptocurrency exchanges to adhere to new, robust due diligence and reporting standards designed to enhance tax transparency and reduce evasion related to crypto-assets starting January 2026. This represents a major regulatory shift impacting the operational and compliance frameworks of crypto platforms in Spain.
The regulation is based on Law 11/2021 and the European directive DAC8, which aims to improve transparency and facilitate the automatic exchange of tax information. The application of this norm implies that exchanges must present two fundamental models: Model 172 for reporting the total year-end balance, and Model 173 for detailed operations of each client.
The new rules imply an era of greater scrutiny for cryptocurrency users in Spain. Users must prepare for and recognize the importance of complying with these new fiscal obligations in the upcoming tax campaigns to avoid penalties and legal complications. Taxpayers will have a clear and monitored obligation to correctly declare their cryptocurrency assets and movements in their income tax return, following the guidelines of DAC8.
Spain's comprehensive approach to cryptocurrency taxation will impose a stricter level of accountability for exchanges and custodians from 2025. Platforms like BIT2ME offer free tools, such as their Tax site, to help generate complete and secure tax reports, making it easier for users to declare without complications.
The Tax Administration in Spain will be able to cross-reference the information reported by digital intermediaries with the individual tax returns of contributors, improving its ability to detect and correct possible tax fraud. DAC8 allows Spanish tax authorities to access reports from national and foreign exchanges, ensuring a broader oversight of the cryptocurrency market.
In conclusion, Spain is implementing a pioneering measure in the cryptocurrency sector by 2025 to strengthen fiscal control and combat fraud. Spain is positioning itself at the forefront of the supervision and tax control of the crypto sector due to the implementation of DAC8. The new regulations are expected to be followed by other European nations in the coming years, marking a significant advance in the fiscal regulation of crypto assets throughout Europe.
- come 2025, the Spanish government will impose new regulations on Crypto-Asset Service Providers (CASPs), requiring them to implement enhanced due diligence procedures for investors, collect and verify detailed information, and report certain transactions to Spanish tax authorities, following the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) and the European Union's Directive on Administrative Cooperation (DAC8)
- The comprehensive approach taken by Spain towards cryptocurrency taxation is anticipated to influence the financing and technology sectors, as exchanges and custodians will be subject to stricter levels of accountability, potentially leading to increased investments in tools and resources to ensure compliance with DAC8 regulations and minimize penalties or legal complications.
