The Spanish Tax Agency published, last month of July, a new Law to Prevent Fraud, specifically referred to the Cryptocurrencies world. They were supposed to develop the ruling before the end of December and since they do noy have enough time to do it, they have confirmed that it is not going to happen before the end of the year, so it would imply that the 720 will not include the new block reporting the value of your Cryptocurrencies by December 31, 2021. This do not include Taxpayers from the Vasque Country and Navarra which the have their own regulations in place since last year
At this point nobody can guarantee that the AEAT will not ended publishing the new ruling on the fourth block of the Modelo 720, but we know that, in any case, according to the Law, you must report and pay taxes of your gains in cryptocurrencies in your 2021 IRPF (April to June 2022.) We have also known that the AEAT has started to ask taxpayers for the status of their cryptocurrencies over the last four years (2017 to 2020), just a snapshoot of your situation of every year.
If the new ruling is published, then during the first quarter of next year, tax residents in Spain with assets and rights abroad must file an annual report of assets abroad, as done in previous years: The report of assets abroad was divided in three blocks, with the obligation to declare any of the blocks when any of them exceeded the value of 50.000 €:
- Bank accounts in financial institutions abroad
- Stocks, bods, values financial rights, and savings in insurance companies, deposited,
- Real estate and rights on real estate located abroad.
With the new ruling they will include a new block with the information, value among others, of cryptocurrency located abroad that are held, or of which there is a beneficiary or authorized.
Accordingly, the obligation to declare will depend on the wallets where the cryptocurrency is allocated.
In the case of hot wallets, those cryptocurrencies that store private keys in places that are always connected to the Internet. It will depend on the country where the company rendering the services, or the location of the server is located.
Regarding the cold wallets, offline devices not connected to the Internet to avoid hacking, it will be more complicated to determine when to declare them as they are devices that are portable. Accordingly, if the device is not located outside Spain there will be no obligation to declare them.
The details of the concepts to be declared are still pending on the approval of the correspondent regulation.
However, the penalties where approved last July, including 5.000€ per data of each cryptocurrency not declared with a minimum fine of 10.000€. The penalties for late or wrong presentation are 100€ per data of each cryptocurrency with a minimum fine of 1.500€.