In a significant policy proposal, Spain’s junior ruling coalition partner, the Sumar party, has unveiled plans to impose a 47% tax rate on cryptocurrency holdings and transactions. The initiative, detailed in recent legislative discussions, aims to align digital asset taxation with the country’s highest income brackets, marking one of Europe’s most stringent crypto fiscal policies. Beyond taxation, the proposal seeks to legally classify all digital assets as seizable property, granting authorities broader powers in financial investigations and debt recovery cases. Additionally, Sumar advocates for implementing a ‘risk traffic light’ system to categorize cryptocurrencies based on volatility, security, and regulatory compliance—providing investors with standardized risk assessments. Financial analysts suggest these measures could position Spain as a strict regulatory jurisdiction, potentially influencing broader European Union digital finance debates. Critics argue the high tax rate may drive crypto enterprises to more favorable markets, while proponents emphasize consumer protection and revenue generation. The proposal awaits parliamentary review and could undergo amendments during Spain’s ongoing budget negotiations.
