The Income 2020 campaign takes place from April 7 to June 30 and can be done online although from May 6 It can be done by phone if you have any questions or from June 2 it can be done in person. There is a question that haunts us in recent years, do we have to declare cryptocurrencies? We explain how they are declared, what must be taken into account or how it varies depending on whether you have bought cryptocurrencies, have made transactions with them or are dedicated to mining bitcoins.
Although Bitcoin is the most common, it is not the only one. There are many other cryptocurrencies that we must take into account at the time of making the Income or to pay our taxes year after year. So keep it in mind whether you have them in a wallet or if you have bought them, if you operate with them, if you mine cryptocurrencies.
What are cryptocurrencies?
Many people in Spain are already familiar with cryptocurrencies and you have surely heard about them, about cryptocurrencies, bitcoin. A type of digital and intangible currency that you do not carry in your wallet or credit card, which does not have its own bills as such, but which we must take into account when making the income statement. They are self-regulating payment units because there is no entity or bank that controls them but it is decentralized and there is no bank or unit that can control it but rather they are controlled through peer to peer exchanges. But even if they are self-regulated payment units, we must take into account that they exist when making the declaration of Income 2020.
Common rules for all
In Spain there is still no specific law for this type of assets but the regulation is expected to change from 2021. The European Union is already working on a common regulation for all and in our country, in Spain, it is being processed in the Parliament the “Law of prevention and fight against tax fraud” where more information is given and on this type of assets. This law explains that those who provide key safeguarding services or cryptocurrency exchange They must report on the balances maintained by the virtual currency holders, but operations such as transfers, collections, payments, swaps, and transmission must also be reported.
Taxes and Income 2020 with cryptocurrencies
Depends. It will depend on whether you have cryptocurrencies bought, sold or if you dedicate yourself to mining them. It must be taken into account that what must be declared in the income is the loss or profit generated by the cryptocurrencies. That is, you do not have to declare cryptocurrencies if you bought them years ago and they are in a wallet without any use. The purchase of cryptocurrencies does not require declaration, but we must declare them if we sell them or if we are dedicated to mining them, be it bitcoin or any other.
Capital gains: If you have sold cryptocurrencies
Most taxpayers who make transactions with cryptocurrencies have received a message explaining that the State Tax Administration Agency has data that you have carried out operations with cryptocurrencies. This message indicates that the benefits are classified as capital gains and, as we will explain below, they must be included in box 389 of the income statement. Specifically, in the title “Other capital gains to be included in the tax base of savings”.
For the first 6,000 euros, you have to pay the 19%. For quantities between 6,000.01 and 50,000 euros, the guy goes up to the twenty-one%. From the 50,000.01 euros, all additional earnings are taxed at 2. 3%. Of course, in 2021 a higher tranche has been added that you must take into account: from 200,000 euros earned you must pay 26%.
As we have said before, you must declare them in box 389.
How to declare them
- Enter the Tax Agency page
- Access the rental campaign (with Cl @ ve Pin, reference number …)
- Create “New Declaration”
- Fill in the data of the declarant (NIF, name and surname, marital status …)
- Go to the top and choose “Sections”
Look for box 389: “Other capital gains to be included in the tax base of savings”Where you will have to fill in the corresponding 2020 income data.
Remember that you can look for some tutorials in ADSLZone on how to make the draft of the Tax Agency for the Income statement or what is Cl @ VE PIn, what it allows us and how we can get this form of authentication to enter to make the draft.
Wealth tax
The Wealth Tax must be paid stating the value of the cryptocurrencies that we have at the end of 2020. The Wealth Tax forces you to pay taxes not for what you earn or consume but for the assets you have. The minimum is 700,000 euros Although it is an amount that varies from one Autonomous Community to another, so it is convenient that you look and look for the updated data of yours to know whether or not you should file the tax or not report them.
Model 720: Overseas
We must take into account model 720 if we have assets and rights abroad. It is a model that must be submitted before March 31 of each year. As collected from Infoautonomos, the Model 720 It is an informative declaration on assets and rights located abroad and is required to be submitted by all natural or legal persons with accounts in entities located abroad, securities, rights, insurance, real estate …
If you do not report the assets abroad, you can face all kinds of sanctions either for not reporting, for providing inaccurate data or for submitting it after the deadline.
Cryptocurrency Mining: Autonomous
If you dedicate yourself to cryptocurrency mining, you must be registered as a self-employed person. It can be considered that it is an activity similar to any other on behalf of others and whose profit is the cryptocurrencies themselves. This will imply that you must register as a self-employed person and that you must pay personal income tax correspondent.
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