The Treasury does not give up in its attempt to curb evasion and has strengthened its surveillance of cryptocurrencies, These assets are considered intangible assets by the Spanish tax authorities for tax purposes. The profits and losses derived from these assets must be declared, just as with other assets.
Despite its high volatility, Cryptocurrencies and other digital assets continue to be an attractive financial option for many investors looking for a refuge from inflation or to diversify their products with an eye to future returns.
It is estimated that Spaniards spend more than 4.000 billion euros annually on these digital assetsHowever, not everyone knows that cryptocurrencies, despite being part of decentralized finance, must be included in the income tax return to comply with tax obligations and avoid penalties.
Tax Agency vs. Cryptocurrencies
The Tax Agency has intensified control over these assets in the blockchain and since its recent past campaigns to today, much has changed in the legislation on the passage of taxes derived from tokensFor tax purposes, cryptocurrencies are considered intangible assets, comparable to patents, copyrights, trademarks, product or goods licenses, software, or franchises.
BUY BITCOINFor that reason, can be accounted for by units or fractions, although these are not legal tender and are not governed by the rules of the Bank of Spain. Of course, the Treasury bases this concept on the fact that Cryptocurrencies can be used as a means of payment If they are accepted by the person receiving the good, right, or service. Therefore, due to their economic value, cryptocurrencies, like other assets belonging to the taxpayer of the Wealth Tax, must be declared in the 2024-2025 campaign.
How to declare taxes on cryptocurrencies in Spain?
There's no need to panic when declaring cryptocurrencies in Spain.These digital assets are governed by the treatment of capital gains and losses arising from the transfer of assets.
This results in the operations made on the blockchain of each native token or Traves de an exchange must be reflected in the income tax return, including whether they generated income or profit. Losses must also be recorded.
How much tax is paid on cryptocurrencies in Spain?
Profits obtained from operations made in cryptocurrencies are taxed taking into account the tax base for savings with the following tax rates:
- Less than 6.000 euros: 19% personal income tax (IRPF).
- Between 6.000 and 50.000 euros: 21% of personal income tax.
- Between 50.000 and 200.000 euros: 23% of personal income tax.
- More than 200.000 euros: 26% of personal income tax.
In case of transactions whose total amount is above 50.000 euros are declared or completed using form 721 referring to the Informative declaration on virtual currencies located abroadFailure to do so could result in a fine from the Tax Agency of up to 200.000 euros.
How is the amount of cryptocurrency taxable?
many people feel concern or doubts about how to file taxes on assets as volatile as the cryptocurrencies, which can rise and fall significantly in just a few days. To calculate the profit from selling a cryptocurrency in the fiscal year the sale value must be subtracted from the purchase value, making the corresponding conversion of this final calculation to euros.
About the losses, It is important to know that these are can be offset by other gains, which serves to reduce tax payments even in a 25% per year for the next four years.
LINK CARD AND EARNHowever, it should be noted that if a taxpayer has digital currencies in his wallet, but without making operations or trading With these, but as a way of future investment, they do not have to be declared and should not be reflected in the declaration.
The form and the models
The Tax Agency form can send shivers down your spine. So you should know that the section dedicated to the declaration of cryptocurrencies is found in the boxes that go from 1800 to 1814 draft.
These are the ones referring to the Capital gains and losses arising from the transfer or exchange of cryptocurrencies by individuals And, as experts point out, they must include specific data on the transactions carried out, the date of these operations, and the value of the cryptocurrency acquisitions in question.
La The 2024-2025 Income Tax campaign begins on April 2. And to declare cryptocurrencies and other digital assets you must use the following forms:
- Model 172: Informative statement on balances in virtual currencies.
- Model 173: Informative statement on operations with virtual currencies.
- Model 721: Informative declaration on virtual currencies located abroad.
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What happens if cryptocurrencies are not declared in the Personal Income Tax?
In Spain, not declaring cryptocurrencies in the personal income tax or IRPF can carry various sanctions. As the Tax Agency considers digital assets as intangible assets Those that must be declared if they generate capital gains or losses, the same criteria apply if this tax obligation is not fulfilled. That is, those related to the Wealth Tax and its deadlines, and these are:
- Fines for omission or incorrect declaration: If it is not declared or is declared incorrectly, the Tax Agency may impose fines ranging from 50% to 150% of the undeclared amount, depending on the severity of the violation.
- Surcharges for late filing: Fines are applied that increase over time after the deadline expires.
- Late payment interest: It is a penalty that applies alongside fines and surcharges for filing late or for failing to do so. The amount to be paid is calculated based on interests, for the period of time and on the amounts owed.
- Additional penalties in case of tax fraud: If the Tax Agency considers that the omission was a deliberate act with the aim of Evade taxes and if the amount to be paid exceeds certain limits, it could be a tax crime. In these cases, the penalties could be more severe. criminal implications.
