Hello, this is an informative article. I am glad that you are interested in knowing about the legal and administrative documents for filing cryptocurrency taxes. I know it can be a complicated topic, but I'm going to help you understand it better. 😊
First of all, you should know that cryptocurrencies are considered a taxable asset by the Spanish Tax Agency. This means that you must declare any profits or losses you make when buying, selling, exchanging, or using cryptocurrencies to pay for goods or services. You must also report the balances you have in virtual currencies located abroad, if they exceed 50,000 euros¹.
To declare your cryptocurrencies, you need the following documents:
- Form 100, which is the personal income tax return. Here you must include cryptocurrency operations in box 389, within the section on capital gains and losses derived from the transfer of other assets². You must indicate the acquisition value and the transmission value of each transaction, as well as the date and the applicable exchange rate. You should also subtract any associated expenses, such as commissions or network fees³.
- Form 720, which is the informative declaration on assets and rights located abroad. Here you must report on the balances you have in exchanges or cryptocurrency exchange platforms located outside of Spain, if they exceed 50,000 euros as of December 31 or if they have had an increase of more than 20,000 euros compared to the previous year⁴. You must indicate the name of the exchange, the country where it is located, the account number or identifier, the balance as of December 31, and the average balance for the last quarter.
- Form 721, which is the informative declaration on virtual currencies located abroad. This model is new and will be applied from January 2024. Here you must report on the virtual currencies that you have in wallets located outside of Spain, if they exceed 50,000 euros as of December 31 or if they have had an increase of more than 20,000 euros compared to the previous year. You must indicate the type of virtual currency, the amount owned, the value as of December 31 and the country where the wallet is located.
I hope this information has been useful to you in knowing how to declare your cryptocurrencies. Remember that it is important to comply with your tax obligations and avoid possible penalties from the Treasury. If you have any further questions, you can consult the sources I have used to prepare this article and contact a tax advisor specialized in cryptocurrencies. Thanks for reading this article! 😊 Don't forget to Like, Share and Comment.👍
Bibliographic references
(1) Complete guide to declare taxes on cryptocurrencies in 2021. https://es.beincrypto.com/aprende/guia-complete-declarar-impuestos-sobre-criptomonedas/.
(2) What is the Form 721 that you have to use to declare cryptocurrencies. https://www.pymesyautonomos.com/actualidad/como-modelo-721-que-tienes-que-usar-para-declarar-criptomonedas.
(3) Practical guide: How to declare cryptocurrencies in the declaration of.... https://ayudasautonomos.com/como-declarar-criptomonedas-2023/.
(4) Guide to declare cryptocurrencies in the income tax return.... https://www.businessinsider.es/guia-declarar-criptomonedas-declaracion-renta-1179480.