Spanish Treasury Suggests Tax Reform to Allow Seizure of Crypto for Unpaid Taxes

Table of Contents

• Royal Decree Declares Electronic Money Entities as Tax Collection Agents
• Crackdown on Money Laundering and Tax Evasion
• Spain Implements MiCA Six Months Ahead of July 2026 General Deadline
• Spain Reiterates the Benefits of a Digital Euro

The Spanish Ministry of Finance proposes a tax reform allowing the government to seize cryptocurrencies and digital assets to settle tax debts.

Spain’s Ministry of Finance said it is preparing a new tax reform that would allow the local tax authorities to seize cryptocurrencies and digital assets on behalf of the government to settle unpaid taxes. 

Royal Decree Declares Electronic Money Entities as Tax Collection Agents

According to a local report, the Spanish Treasury wants to gain control and oversight of crypto assets owned by taxpayers. The Ministry of Finance proposes reforming current tax regulations to grant Agencia Tributaria, Spain’s tax watchdog, the right to seize crypto holdings for delayed and unpaid taxes. 

The proposed reform of the General Tax Law, specifically Article 162, would allow the state administration to embargo digital assets by first declaring electronic money entities as tax collection agents. The Spanish administration issued a royal decree which came into force on February 1 that declares electronic money entities as tax collection agents. The decree means these tax collection agents would have to execute embargo actions on customers’ digital money and crypto holdings when required or instructed by the government, a duty previously only required from traditional banks and credit cooperatives. 

The proposal was made to the European Union (EU) in 2021 and will be implemented soon. Per the local report, the government is moving swiftly to create the conditions necessary to seize crypto assets when liquidating tax debts. 

Crackdown on Money Laundering and Tax Evasion

From this year, the Spanish Treasury will further require taxpayers to declare crypto assets held outside Spain. It said such data would be helpful when the tax reform passes. The Treasury also said data from crypto tax statements obtained since 2021 will be used to collect money for outstanding tax debt if necessary.   

Treasury is committed to fighting against tax evasion and preventing money laundering. Treasury is reportedly investigating mandates on banks and electronic money institutions to report on all card transactions. 

Spain Implements MiCA Six Months Ahead of July 2026 General Deadline

Spain is working hard to introduce crypto regulation and announced that the EU’s Markets in Crypto-Assets (MiCA) Act will come into force nationally in December 2025. The deadline for implementing MiCA for all EU member states is July 2026, meaning Spain is about six ahead of the rest.

The general deadline includes a 36-month transitional period for member states since MiCA’s date of publication of the MiCA in the Office Journal of the European Union in June 2023. According to a press release by the Spanish Ministry of Economy and Digital Transformation, Spain wants to shorten the transition period to 18 months, saying: 

“[This] will provide legal certainty and greater protection for Spanish investors in this type of assets.”

Spain Reiterates the Benefits of a Digital Euro

The Spanish government is also intent on introducing the digital euro, the central bank digital currency (CBDC), in the works for the EU. The Bank of Spain recently joined a host of European banking institutions preparing their customers for the potential benefits of a digital euro.

The central bank explained what a digital euro could offer and what advantages it brings:

“Since their introduction in January 2002, euro banknotes and coins have been the representation of our single currency and the only means of public payment available to all citizens of the eurozone. The physical format of cash, however, does not allow us to exploit all the advantages offered by the growing digitalization of the economy and society. This has led the Eurosystem to analyze the possibility of issuing a digital euro as a complement to cash.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.