Spain's Ministry of Finance is set to propose a tax reform enabling the seizure of cryptocurrencies and digital collectibles for tax delinquencies, as reported by El Economista. 

This adjustment to the General Tax Law, specifically amending Article 162, would empower the national tax authority to take control of digital assets from taxpayers who fail to pay their taxes on time.

The government already has access to data regarding the crypto assets of its citizens, with the requirement that both individuals and businesses report their cryptocurrency stored overseas starting this year. Spain stands at the forefront among European nations in implementing strict tax regulations on cryptocurrency transactions, mandating that all crypto-related gains or losses be included in personal income tax returns.

By March of this year, Spanish citizens engaging with international crypto exchanges must report holdings that exceed €50,000. Those owning cryptocurrencies in private wallets must report these assets using the wealth tax form, Form 714.

Furthermore, the Ministry of Economy and Digital Transformation has disclosed plans to expedite the adoption of the EU's Markets in Crypto-Assets Regulation (MiCA) framework to December 2025, advancing the initial deadline by six months.