The Anti-Fraud Law has recently established that, as of January 1, 2023, taxpayers (both companies and individuals) who hold cryptocurrencies must declare to the Tax Agency both the amount and its monetary value at the end of the previous tax period. Although this is a very new issue, the Tax Agency has already established some criteria to be followed.
First of all, there are 3 main informative models through which cryptocurrency holders will have to inform the Tax Agency about the value of virtual currencies for the fiscal year 2022.
- Form 721, by means of which the assets of coins must be declared whenever they exceed the amount of 50,000 euros. It must be filed before the end of the first quarter of 2023 (March 31, 2023).
- Forms 172 and 173, by means of which the declarations of cryptocurrency service providers with tax residence in Spain will be made. Form 172 is intended for both individuals and companies to declare the balances of their cryptocurrencies (their own and those of their clients). On the other hand, form 173 is reserved for companies with tax residence in Spain that participate in the cryptocurrency business regardless of where they provide their services and the location of the virtual currencies or their holders.
Regarding taxation, the new regulation considers that cryptocurrencies can cause capital gains or losses, and no matter how small they may be, the obligation to declare them arises. This obligation will only affect those who own cryptocurrencies with a combined value of more than 50,000 euros at the end of the previous tax period. The new box 46 provided for this purpose will only have to be completed when there is a capital gain. There is no obligation to declare losses, but it is recommended that they be included because they can be offset in the future with other gains (should they occur). The sale, exchange of cryptocurrencies and capital gains are taxed in the special part (savings base) of the IRPF. On the other hand, mining operations are taxed in the general base.
Cryptocurrencies have the same treatment for Wealth Tax purposes as capital in foreign currencies, so they must be declared at their market value on the date of accrual (December 31). In the event that the individual does not exceed the minimum exempt from this tax, they should not be declared.
We recommend that you analyze the new obligations in detail, as failure to comply with them will result in considerable penalties.