The Treasury is unforgiving: this is how you should declare cryptocurrencies to avoid fines.

In recent years, cryptocurrencies, They have gone from being a fad for a few to becoming an everyday reality for many Spanish investors. But with the arrival of the income tax season, a question arises that provokes more doubts than a season of Black Mirror: How to tax our cryptocurrencies correctly?

Luckily the Spanish Tax Agency has decided to clarify things by creating a specific space on the personal income tax return to declare our digital currencies. Yes, you no longer have an excuse to forget about them.

Where do I put my cryptos on my tax return?

In the 2024 declaration, the Treasury has included the boxes 1800-1814 Exclusively for cryptocurrencies. It's crucial that you don't skip any details here. You must clearly specify:

• The transactions carried out: : each operation must be carefully recorded.
• The acquisition value: how much you originally paid for your cryptocurrencies.
• The exact date of each operation: essential to correctly calculate profits or losses.

These boxes allow the Tax Agency to accurately assess your transactions and clearly indicate your capital gains or losses.

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But when exactly do I have to declare my cryptos?

The rule here is simple: any transaction that involves a capital gain or loss must be reflected. This includes:

• When you sell cryptos for traditional money (euros).
• When exchanging one cryptocurrency for a different one.
• When using cryptocurrencies to purchase goods or services.

It may seem complex at first, but imagine your cryptocurrencies as if they were stocks or property. You buy at a low price, sell at a high price, and make a profit. That difference, precisely, is what you must declare. Now, imagine you don't have a profit, but rather a loss: this is also important to declare, as it could reduce your tax burden in other ways.

Other ways to make money with cryptocurrencies

There are also alternative ways, beyond traditional buying and selling, to generate income from your cryptocurrencies, and these methods have specific tax treatment that you should clearly understand:

• Cryptocurrency miningIf you generate cryptocurrency through mining using your own equipment, the Treasury considers this activity to be economic. However, it will not be subject to VAT. Why isn't there VAT? Because the Tax Agency doesn't consider direct consideration to exist. But be careful: even if there's no VAT, the profits must be declared as economic income, which could lead to higher taxes.
• Direct staking: If you directly manage a node and receive cryptocurrency rewards for it, the Treasury considers it return on movable capitalTherefore, you will be taxed according to the savings scale, which will benefit you fiscally compared to other economic activities.
• Indirect or delegated staking: This occurs when you deposit your cryptos into platforms or smart contracts that manage the nodes for you. Although the General Directorate of Taxes has not yet given a definitive official response, experts agree that this method should also be declared as return on movable capital.

Clear and straightforward tax rates

Here's exactly how the tax rates applied to your crypto earnings work:

• To €6.000 of profits are taxed 19 %.
• De 6.001€ to 50.000€ al 21 %.
• De 50.001€ to 200.000€ al 23 %.
• De 200.001€ to 300.000€ al 27 %.
• More than €300.001 al 28 %.

Also, don't forget that if you have a balance greater than 50.000 euros in cryptocurrencies, you must specifically declare this amount to avoid future complications with the Treasury.

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Specific models for your cryptocurrencies

To make things even easier, there are specific templates designed to make your declaration even simpler and clearer:

• Model 172: Used to report your total cryptocurrency balance.
• Model 173: Designed to record in detail all your cryptocurrency transactions during the fiscal year.
• Model 721: Essential if you keep cryptocurrencies on platforms or wallets located outside of Spain.

Who is required to file Form 721?

The obligation to submit this form is very clear and specific:

• Spanish tax residents, both individuals and legal entities.
• Permanent establishments in Spain of foreign persons or entities.
• Entities without legal personality (such as joint property, unexpired inheritances, among others).

If you hold cryptocurrencies on international platforms and exceed certain financial thresholds, don't forget this template to avoid unpleasant surprises.

Looking to the future: fewer doubts, more clarity

Regulation inevitably always follows innovation. The specific inclusion of boxes dedicated exclusively to cryptocurrencies in the declaration of IRPF It's no coincidence. It clearly reflects that cryptocurrencies are here to stay and that Estate wants to be up to date.

What does this mean for you as an investor? First, you must be extremely careful and organized with your transactions. Keep clear records, establish a control system, and don't wait until the last minute.

Second, take advantage of the clarity the Tax Agency now provides to optimize your tax strategy. Proper planning can save you thousands of euros in taxes, while remaining within the legal framework.

And finally, remember that fiscal peace of mind is also a fundamental part of your financial health. Don't let tax doubts prevent you from fully enjoying your earnings.

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Are you really ready to declare your crypto?

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If you have any doubts, start preparing your tax return with confidence now. The future is here, and your financial peace of mind depends on making informed decisions.