Blockchain Companies in Spain Might Get Tax Breaks

A new proposal by Spain's ruling party offers tax breaks for blockchain companies and ICOs along with some other enticing incentives.

Spain is not a country known for its blockchain scene, but that might all change if the ruling party has its way. The People’s Party, led by Prime Minister Mariano Rajoy, is working on a legislative proposal that would introduce tax breaks for blockchain companies that wish to operate in the country.

The bill comes as part of a tax incentive package for enterprises involved in various types of technologies and aims to give a boost to the Spanish financial, healthcare, and education sectors, Teodoro Garcia Egea, the architect of the proposal, told Bloomberg.

But the party doesn’t want to stop there – the bill also includes provisions that would entice entrepreneurs to start their own initial coin offerings (ICOs).

“The level of the digitalization for companies will be key. We hope to get the legislation ready this year,” Garcia Egea added.

To strengthen the appeal for investors, Spain would also set a threshold below which cryptocurrency holdings will not have to be reported to regulators. The hope is that it would help drive competition among smaller ventures and give them room to grow.

“We want to set up Europe’s safest framework to invest in ICOs,” Garcia Egea said.

It isn’t odd to see a country attempt to attract blockchain startups, but the desire of the People’s Party’s to spur the ICO market is certainly a surprise considering that many other countries in Europe have yet to decide what to do about the phenomenon.

Spain, however, isn’t the first country in Europe with ambitions to become a blockchain hub.

Slovenian Prime Minister Miro Cerar has revealed intentions of establishing the nation as a blockchain center. Slovenia wants to set up a think tank backed by top blockchain companies to help the government draft legislation that would help the market grow.

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