Revenue starts 2021 and we have news about cryptocurrencies this year. Here we explain how we should announce them and what changes the Treasury has brought. A guide to knowing what our obligations regarding cryptocurrencies are, in which case we are exempt from reflecting them, and what we should consider.

Owning cryptocurrencies does not mean declaring them. The debt arises when it is sold. As with stocks, owning cryptocurrencies does not mean we have to pay taxes on them. Liabilities usually arise when we make a profit from selling them. That is, if we have bitcoins on an exchange but they have not brought us a profit (eg by staking) or we have not turned them down, it is not necessary to include them in Revenue.

If the income exceeds 1.000 Euro. Another figure to keep in mind is the thousand Euro margin. If our last year’s income is below this figure, we do not have to be accountable. Of course, all operations are valid both at home and abroad. And if this figure is exceeded even at the minimum level, we must declare all movements in virtual currencies. It is optional in case of loss, but it is recommended to include it as they can act in our favour.

The four sections where cryptocurrencies will be declared. Depending on the type of movement, we must declare it in the relevant section. Here are four well differentiated options.

• Gains and losses by transmission: for the sale and exchange of cryptocurrencies.
• Returns on capital: interest, hoarding, and returns from owning cryptocurrencies.
• Gains and losses without transmission: airdrops, referrals, rewards and coins from direct purchase.
• Economic activity: mining, trading or selling to third parties.

Cryptocurrency box. For the sale and exchange of cryptocurrencies, a special box was created for the first time in 1626 to report on ‘Balances in virtual currencies’. In the section “Capital gains and losses from the transfer of other patrimonial elements”. So in this box we will put sales and swaps, but in case of interest or stakes they should be included in the ‘Gains and Losses not due to transfer of assets’ section.

how much tax is paid. Since the first and fourth parts are taxed in the general part, the taxes will vary between 18% and 47%. In the case of non-interest and non-transferring earnings, up to 19% up to 6,000 Euros; 21% between 6.001 and 50,000 Euros; 23% for earnings below € 200,000 and 26% for earnings above € 200,001.

Wealth Tax (in addition to personal income tax). While dependent on each autonomous community, there is an additional obligation here. It is a supplemental tax presented with Income on form 714. The idea is that if the amount of cryptocurrency we own (along with our non-habitual assets) exceeds a certain amount, it must be declared and taxed. . The Spanish average is around 600,000 Euros.

In the case of Wealth Tax, a special box 46 is also included for reporting on Balances in virtual currencies.

Approx. with model 720 (for overseas). Another model beyond the lease is the 720. The High Court of Justice of the European Union has declared some aspects illegal. As a result, the Treasury decided to change that. This is a statement about goods abroad, including cryptocurrencies. However, we are not obligated if we have less than 50,000 Euros. Yes, this is recommended for those who have assets of more than 50,000 euros, have offered the Model 720 in previous years, and use platforms such as Revolut, DeGiro or eToro to invest.

Image | Kanchanara