Through Law 11/2021, of July 9, on measures against tax fraud, an amendment to the eighteenth additional provision of Law 58/2003, General Tax, regarding the declaration of assets and rights located abroad was approved, “Form 720”, which adds the following paragraph:
“d) Information about the virtual currencies located abroad of which you are the owner, or in respect of which you have the status of the beneficiary or authorized or in any other way have the power of disposal, guarded by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies”
Taxpayer’s obligations
This new category adds to the taxpayer’s obligation to report on accounts, securities, and real estate abroad.
As for the thresholds from which the taxpayer is obliged to submit form 720, Royal Decree 1065/2007 establishes that there is no obligation to report accounts, securities, or real estate abroad if on December 31 of the previous year:
a) It does not exceed, in any of these categories, €50,000; or
b) Having previously submitted the form for some or all of said categories, if there has not been an increase of more than €20,000 concerning the last form 720 submitted; or
c) Having presented the model previously, cancellations must be reported.
This rule does not incorporate cryptocurrencies in its regulation, although it is understood that these thresholds are extended for the declaration of cryptocurrencies from the year 2022.
Finally, the recent ruling of the EUCJ of January 27, 2022, does not affect the incorporation of cryptocurrencies in form 720, although the regulation of the sanctions that may be derived or the prescription for profits derived from goods and rights abroad not declared or declared incorrectly, they will soon be modified when the Spanish legislator adapts the ruling of the EUCJ to the internal regulations.
If you have any questions regarding this topic, please contact our tax advisors in Barcelona by email or phone.
