Is it necessary to declare them in my tax report?

Yes. For a long time, the incorporation of a new law in Parliament, the Anti-Fraud Law, has been heard for long time, it was not until July 10 when it was finally published in the BOE and became effective.

This new regulation has been implemented in order to increase control over cryptocurrencies. From now on, not only information of the sale must be provided to the Tax Agency but also all the information about the cryptos that are in the portfolio. All persons or establishments/entities that are residents in Spain or with activity here must declare all investments related to their currencies.

Likewise, exchanges must guarantee to the Tax Agency data on addresses, tax identification, price, and date, being able to apply penalties of up to € 5,000 for each data that has not been declared.

And ... how are they taxed?

Cryptocurrencies must continue to be recorded in box 389 "Other capital gains to be included in the tax base of savings" of the income statement.

However, while previously it was necessary to record only profits, now it is mandatory to record losses as well. For this reason, we recommend keeping track of all the transactions that have been made with cryptocurrencies from the first moment! 🤓

In addition, bear in mind that, as with any asset, you must declare it with the rest of your assets, since it is linked to the Wealth Tax. To pay this tax, it is necessary to determine and reflect what the value of the cryptos is at the time of the declaration. The minimum of this tax, which refers to the assets you have, depends on each city. For this reason, and although the minimum is usually € 500,000, it is important that you check the amount for your city.

As additional information, those people who mine cryptocurrencies must register as self-employed. As it is an economic activity, it could resemble a job for others whose form of remuneration was in crypto. Therefore, the person must register and follow the obligations that normally apply.

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