TAXATION AND TAXING TO BE PAYED WITH CRYPTO-MONNAYS IN SPAIN
2 March 2022
TAXATION AND TAXING TO BE PAYED WITH CRYPTO-MONNAYS IN SPAIN
HOW TO BITCOIN, ETHEREUM, RIPPLE, ETC. Are they TAXED IN SPAIN? WHAT ARE THE OBLIGATIONS OF THE TAX REGULATIONS IN SPAIN IN THIS IN THAT IN THAT IN THAT IN THAT IN THAT IN SPAIN IN SPAIN IN THIS SPAIN IN TH . I BUY CRYPTO-MONNAIES, DO I PAY IMPTS?
This depends on the tax:
INCOME TAX
For income tax purposes, the mere “possession” of cryptocurrencies does not imply that they must be expressly reported on the annual income tax return.
However, there is an obligation to declare the LOSSes or PROFITS that you obtained with the purchase and sale of these cryptocurrencies.
Therefore, in conclusion, if you do not generate positive or negative returns, you have nothing to report for this purpose in the tax return in Spain.
However, what are the taxes to be paid on the profits from the sale of cryptocurrencies?
The conversion of cryptocurrencies into another commonly used currency, such as the euro, the dollar, etc., or another cryptocurrency, is considered the “sale.” The best thing is that you ask for an annual list of movements made during the year with crypto, and whether, as a profit or a loss, you declare it in the following year’s personal income tax return.
For example, the profits or losses you obtained with the sale (or conversion) of your cryptocurrencies in the year 2021, you will have to report them with the rest of the income you have on the personal income tax return to be made before June 2022.
What is the total income tax to be paid in the event of the sale of cryptocurrencies?
The first thing to say is that profits or losses from the sale of cryptocurrencies are taxed as savings income in the RPF, separately from working income (or pensions) as follows:
| IMPLEMENTATION RATE FOR SAVINGS | |
| Revenue | Tax rate |
| Up to EUR 6000 | 19% |
| 6000 – EUR 49.999 | 21 per cent |
| 50,000 – 199.999 EUR | 23% |
| – 200,000 – 200,000 | 26 per cent |
IMPORTANT NOTE: In the case envisaged above, we value the taxes to be paid in the case of a “sale” of cryptocurrencies. In the case where your business consists of cryptocurrency mining, this is a professional activity, for which you will have to register as a professional, self-employed or legal person, and the income obtained will be taxed by the corresponding party. to the “economic activity” with expenditure derived from this activity. You will only pay taxes on the net profit from this activity.
INFORMATIVE HEALTH DECLARATION – MODEL 720
Although there are still doubts as to whether it is mandatory to declare your cryptocurrencies for the purposes of Form 720, we recommend that you report if you reside in Spain via this annual reporting form, especially if the value of your cryptocurrencies exceeds EUR 50 000.
TAX ON FORTUNE
This tax is levied on assets that you may have in your name. Therefore, it includes the holding of cryptocurrencies. If you are not a Spanish resident: Then, this tax is levied on the assets you may have in Spain. If you are a Spanish resident: then this tax is levied on ALL the assets that you can have in Spain and any other country in the world. Therefore, in the case you are a resident in Spain, this tax includes possession of cryptocurrencies, and
It must be said that wealth tax is a regional tax that is ceded to the autonomous communities in Spain. In many of them, and depending on where you live, you will find that there are personal minimums for which, in the event that the total value of your assets does not reach the minimum, you should not pay that tax.
For example, in the Valencian Community, this tax is only declared when, as a resident of this community, your assets in Spain exceed EUR 600,000.
https://spanishtaxcalculator.com/en/taxation-and-taxes-to-pay-with-cryptocurrencies-in-spain
