[2018-02-16] Spanish Government Eyes Tax Benefits for Crypto Companies

[nickbelski]

Spain's ruling political party is reportedly drafting legislation that it hopes will help woo cryptocurrency and blockchain companies to the country.

According to Bloomberg, the People's Party of Spain is eyeing the move as part of a package that would be focused on firms working with new technologies like 3-D printers.

Yet according to lawmaker Teodoro Garcia Egea, who spoke to the news service, the bill could ultimately include provisions that aim to attract companies that are looking to sell tokens via initial coin offerings. The bill may also specify a threshold below which cryptocurrency investments would not have to be reported for tax purposes.

"We hope to get the legislation ready this year," Garcia Ega commented.

The People's Party is also encouraging lawmakers to hear testimony from blockchain experts on the matter, and it intends to review regulatory measures that other countries such as Switzerland are developing or have already implemented. Egea told Bloomberg Politics that the technology is good for Spain because it spurs work in other sectors like education, finance and health.

The legislation may also be focused in part on encouraging investment in token sales, according to Garcia Egea.

"We want to set up Europe's safest framework to invest in ICOs," he was quoted as saying.

Spain is far from alone in drafting blockchain-related legislation. Gibraltar, a U.K. overseas territory, intends to solidify its position on ICOs this month.

https://www.coindesk.com/spanish-government-eyes-tax-benefits-crypto-companies/

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[cynical]

This is positive thinking from Spain.
They obviously see the benefit of Blockchain for the future and are looking to secure investment in the technology.
This is actually something which Australia introduced in 2017 - https://www.ccn.com/australian-govt-blockchain-will-support-innovation-productivity-right-across-economy/

[meer45]

It is rare to see such a positive outlook from a regulator. The crypto world is obviously going to be the place where the majority of the money will be in the future, so whatever countries act first in determining regulations are going to corner the market and win in the long run.

[richardsNY]

It is rare to see such a positive outlook from a regulator. The crypto world is obviously going to be the place where the majority of the money will be in the future, so whatever countries act first in determining regulations are going to corner the market and win in the long run.

It seems rare due to the high load of fud that we have to dig through lately. This is basically the same as what happened with Belarus. Both countries (one more than the other) have economical difficulties that they hope to minimize by functioning as hot spot for crypto and blockchain based businesses and startups. It's obvious that this industry is where countries can benefit the most from, and especially so when it comes to being one of the very first. Quite often first mover advantage can give you the boost that you need, where later on a larger entity (other county) will likely not be able to surpass you. CBOE is much smaller than CME when it comes to their market share as futures and options platforms, but that first mover advantage made CBOE a much larger player in Bitcoin future contracts.

[Kemarit]

This is positive thinking from Spain.
They obviously see the benefit of Blockchain for the future and are looking to secure investment in the technology.
This is actually something which Australia introduced in 2017 - https://www.ccn.com/australian-govt-blockchain-will-support-innovation-productivity-right-across-economy/

Hmm. This is the first time that I heard Spain's stance on crypto. So I guess, EU is also divided as far as their support on crypto. Only making noises is France and Germany, who is calling for a joint crypto clampdown. They are even pushing it for discussion in the G20 Summit meeting new month. As for Australia, I wouldn't be surprise since they have been adopted bitcoin. The article is very alarming because they want to be a ICO hub just like Belarus wanted to be. And we should understand their mindset, because its gonna be a win-win situation for the country and the crypto lovers all over the world. Good Job Spain!!!

[laurenB7742]

This is positive thinking from Spain.
They obviously see the benefit of Blockchain for the future and are looking to secure investment in the technology.
This is actually something which Australia introduced in 2017 - https://www.ccn.com/australian-govt-blockchain-will-support-innovation-productivity-right-across-economy/

Hmm. This is the first time that I heard Spain's stance on crypto. So I guess, EU is also divided as far as their support on crypto. Only making noises is France and Germany, who is calling for a joint crypto clampdown. They are even pushing it for discussion in the G20 Summit meeting new month. As for Australia, I wouldn't be surprise since they have been adopted bitcoin. The article is very alarming because they want to be a ICO hub just like Belarus wanted to be. And we should understand their mindset, because its gonna be a win-win situation for the country and the crypto lovers all over the world. Good Job Spain!!!

True. Europe is divided as always, but the line is not drawn the way it is usually drawn (East vs. West Europe or the other division South vs. North Europe). With cryptocurrencies, the boundaries are more interesting. Spain is apparently joining the pro-crypto group of countries which are Belarus, Slovenia and Denmark.

[Mikhail 777]

An interesting position in the Spanish government, I think it will only benefit the market as a whole. Whenever there is positive news from the government, this is good for the market as a whole. The market is still very small and reacts to all the news.

[Kakmakr]

I am glad to see not all governments are close-minded about Crypto currencies and even open-minded enough to encourage it.

It might be, as some previous posters identified, that they might get some financial benefit from this decision, but it is still the right decision, even if it comes with a hidden agenda.

We saw what happened with other governments, when they over regulate Crypto currencies. People just relocate to other countries, where they are free to operate in a Bitcoin-friendly environment. < Taking their business, new jobs and tax with them >

I hope Spain will become a Bitcoin stronghold, like Japan soon. ^smile^

[okae]

In a country where in last years lot of corrupt politicians and businessmen have been caught for his fraudulency atcs(i know what im talking about...), i'm a little bit scared that this will not end well.

Anyway this seems to be a pretty good news for me and if this finally goes well, i hope that more countries do the same soon since this is something that must be done, yes or yes.

[seoincorporation]

One of the spaniard experts who has been researching about the legal use of BTC in Spain (since 2014) is Pablo Fernández Burgueño, co-founder of Abanlex. He’s a lawyer, expert in politics and journalist and he has put the finger into the Spanish system of taxes by opening his own enterprise. I believe his influence from the last 3 years is been crucial to the development of a clear discourse about how is going to be the Spanish Government position about Cryptocurrencies.

I think that's the reason why come technology enterprises based on BTC are thinking on Spain as a good place of starting. That is not because Spain is going to be more “open”, but more “transparent”. They have been developing, thanks to this man own fight, a clear law about BTC, so there is maybe a good option for technical solutions enterprises to start… If there is clarity in the law system about BTC, then the problems should be less, at least.

[BitHodler]

In a country where in last years lot of corrupt politicians and businessmen have been caught for his fraudulency atcs(i know what im talking about...), i'm a little bit scared that this will not end well.

Corruption is literally everywhere, so for me it's not really a problem in the way that I see it affect Spain's crypto friendly stance. They could just as well not do anything in terms of crypto, so I definitely see it as a positive development.

In most cases the initial phase of operating a startup doesn't bring in any profits, which with the help of certain tax benefits will give them more breathing space financially.

I however am a bit unsure how they will stimulate and properly regulate ICOs in the way that it offers a safe and transparent environment for the projects themselves and the potential investors.

ICOs are obviously where the big money is, and we have witnessed first hand how poisonous this industry has become. Nothing in this article shows an insight into how they plan to create Europe's safest ICO framework.

[Samarkand]

...

In most cases the initial phase of operating a startup doesn't bring in any profits, which with the help of certain tax benefits will give them more breathing space financially.
...

I´d argue that this is only true for the operation of a traditional start-up.
Most ICOs raise enough money that they have an amount of available capital
that is much higher than that of a traditional start-up. If Spain manages to tax
the ICO proceeds they will collect money right from the start and not only if the
business manages to generate any profits.

Nevertheless, it is interesting to see how countries like Belarus and Spain are trying
to position themselves for the economy of the future.

[superjeyy]

In a country where in last years lot of corrupt politicians and businessmen have been caught for his fraudulency atcs(i know what im talking about...), i'm a little bit scared that this will not end well.

I somehow had the same thought as you did, okae. I am not from Spain but corruption is rampant in my country and maybe I get a feeling that when the government is  hard to trust due to their previous faults or shortcomings, it's hard to believe that they can bring something so good and promising without abusing it. Hopefully, the intentions here are genuine and that they aspire only for the betterment for their country's development. Here's to change and acceptance, may everything go well with their plans to promote innovation and flexibility.

[cynical]

This is positive thinking from Spain.
They obviously see the benefit of Blockchain for the future and are looking to secure investment in the technology.
This is actually something which Australia introduced in 2017 - https://www.ccn.com/australian-govt-blockchain-will-support-innovation-productivity-right-across-economy/

Hmm. This is the first time that I heard Spain's stance on crypto. So I guess, EU is also divided as far as their support on crypto. Only making noises is France and Germany, who is calling for a joint crypto clampdown. They are even pushing it for discussion in the G20 Summit meeting new month. As for Australia, I wouldn't be surprise since they have been adopted bitcoin. The article is very alarming because they want to be a ICO hub just like Belarus wanted to be. And we should understand their mindset, because its gonna be a win-win situation for the country and the crypto lovers all over the world. Good Job Spain!!!

True. Europe is divided as always, but the line is not drawn the way it is usually drawn (East vs. West Europe or the other division South vs. North Europe). With cryptocurrencies, the boundaries are more interesting. Spain is apparently joining the pro-crypto group of countries which are Belarus, Slovenia and Denmark.

There are definitely gains to be had by adopting the technology early and establishing a proper working environment
for tech companies to be created, to grow and flourish.
It can only aid the sector overall.
The big 2 powerhouses in Europe, France and Germany feel threatened by crypto.

[AjithBtc]

Very few countries adopt the technology behind bitcoin for some sort of effective functioning of different operations. In the means countries focused on regulating bitcoin is taking place all around, and the major reason for such an effort is to gain through taxation as the user community of bitcoin keeps rising gradually.

[Uzunhahn]

We will see this more often this and next year. It is the only logical move to accept crypto.
Countries that step into cryptocurrency regulation earlier will benefit more. But it's not an easy task.