Spain’s New Tax Bill Targets Bitcoin and Crypto with Seizures and Strict Reporting

The Spanish government has taken a significant step toward tightening its grip on cryptocurrency and taxation, with the Council of Ministers approving a bill on Tuesday that mandates cryptocurrency exchange providers to report user transactions and balances to the Spain Tax Agency. This legislative move, driven by the European Union’s DAC8 directive on automatic information swaps, aims to heighten oversight of digital assets held by Spanish residents, both domestically and abroad. The bill, which is now headed to the Spanish Congress for approval, reflects Spain’s ongoing directive to aligning with EU standards while intensifying its scrutiny of the evolving crypto sector.

The proposed law extends beyond cryptocurrencies like Bitcoin, encompassing any token used to purchase goods or services, as well as electronic money. For the first time, the Spanish Tax Agency will gain the authority to seize crypto assets to settle taxpayers’ debts. This development marks a significant shift in Spain’s tax enforcement strategy. Crypto exchange providers will also be required to report client accounts and balances, mirroring obligations long imposed on conventional banks. The Ministry of Finance emphasized that these measures will provide greater visibility into assets held abroad, closing loopholes that have allowed some taxpayers to evade scrutiny.

Broader Implications for Spain’s Crypto Landscape

The bill aligns with the EU’s broader push to strengthen tax compliance in the digital asset space, with Brussels projecting an additional 2.4 billion euros in revenue through enhanced taxation controls. Spain must transpose the law by December 21, 2025, for it to take effect on January 1, 2026, ensuring seamless integration with the DAC8 framework. Under this directive, Spain’s tax authority will receive data from other EU countries and third territories with information-sharing agreements, creating a more comprehensive picture of Spanish residents’ crypto holdings across borders.

Spain’s stringent and abrasive approach to cryptocurrencies is not new, as evidenced by high-profile cases involving prominent figures in the crypto community. Roger Ver, a long-time Bitcoin advocate, is currently detained in Spain awaiting extradition to the United States on alleged tax evasion charges, which he strongly denies. Arrested in 2024 while visiting Spain, Ver’s extradition appeal was rejected in February 2025, highlighting the country’s firm stance on tax-related matters. Similarly, the late John McAfee, another crypto advocate, died in a Spanish prison in 2021 while awaiting extradition to the U.S. for alleged tax evasion. Although officially ruled a suicide, McAfee’s death remains controversial, with many questioning the circumstances surrounding it.

These cases illustrate Spain’s reputation as a jurisdiction that takes tax compliance seriously, particularly in the crypto space. The new bill reinforces this stance, signaling to crypto investors and exchanges that the government is intensifying its efforts to regulate and monitor digital assets. For Spanish residents holding crypto, the law will likely mean greater stringency and loss of privacy, as the Tax Agency gains unprecedented access to their financial activities. Crypto exchanges operating in Spain will also face increased compliance burdens, as they adapt to the reporting requirements outlined in the bill.