The Smar parliamentary group has submitted amendments to parliament in a project to amend three Spanish tax laws regarding virtual currencies.
The project proposes to amend General Tax Law 58/2003 on prescriptions, collections, mutual aid and information obligations, as well as Law 35 of 2006 on income tax and Law 29 of 1987 on inheritance and donation taxes.
The proposal proposes that profits derived from crypto assets will not be considered financial instruments. Individual income tax (IRPF) of up to 49% is levied on a general basis.higher than the current maximum of 28%. It is also defined that these profits are subject to corporate tax at 30%.
Furthermore, it stipulates that the National Securities Market Commission (CNMV) will create a visual risk signal for cryptocurrencies, which will be displayed on Spanish investor platforms and must assess factors such as formal registration, supervision, support and liquidity.
For José Antonio Bravo Mateu, an economist and tax advisor, these measures are “a futile attack on Bitcoin, which is immune to political attacks.” The reason is that the amounts held in self-custodial wallets are not subject to financial supervision or tax confiscation.
“The only thing they can achieve with these measures is that holders domiciled in Spain will think about fleeing when BTC rises too much and not care what politicians say,” the economist said.
In this project, virtual currency will also be recognized as an asset that can be seized.
The proposal also includes amendments to the embargo system. Include all crypto assets as seizable assets. This represents an expansion of the scope of the regulation to include only those previously regulated by the European Union’s Markets in Cryptoassets Regulation (MiCA).
This aspect of the proposal has caused confusion among experts such as attorney Chris Carrascosa, who notes that it is “unenforceable.” It explains that cryptocurrencies that are not regulated by MiCA, such as Tether (USDT), cannot be stored by licensed central providers. Therefore, it indicates that it cannot be seized.
“This amendment is meaningless, unenforceable and adds no value. On the contrary, it complicates the lives of CASPs (crypto asset service providers) who ultimately have to enforce the seizure orders,” the lawyer added.
In his view, if the draft amendments are approved, “it will cause havoc in the entire Spanish crypto tax system.” He criticized the country already experiencing a “complex and stifling tax system” and warned: “If politicians want to stop this barbarity, look to me.”
In parallel to this effort, a project led by two financial inspectors, Juan Faus and José María Gentil, is proposing a special regime that would tax Bitcoin (BTC) profits separately from other cryptocurrencies. As reported by CriptoNoticias, the idea generated enthusiasm within the ecosystem to facilitate tax relief for major digital currencies.