Until the MiCA regulation enters into force and while the modifications recently proposed by the Ministry of Finance do not, in Spain what we have is the application of the general tax rule that regulates any other asset.

Thus, although cryptocurrencies are considered digital assets registered in decentralized accounting books (ledgers) based on blockchain technology, as with any other asset if a transaction with them generates income, these must be declared in the capital gains and losses section of your tax return. And this includes any kind of profit that occurs from trading crypto assets, whether it be a sale, swap or exchange.

To calculate the tax base on which it will be taxed, you must subtract the acquisition value from the sale value of your virtual coins. The tax rate with which profits are taxed will be:

19% up to €6,000

21% from €6,001 to €50,000

23% from €50,001 to €199,999

25% from €200,000 and above

This is all self-declared, the tax agency "does not know" if we do not inform it. Currently there is a duty to report positions in assets located outside of Spain when their value exceeds €50,000, which includes the obligation to declare crypto assets through the model 720 that must be presented annually.

As we anticipated, there is a Royal Decree in progress that would develop the reporting obligations related to holding and operating with crypto assets.

Regarding these obligations, it is intended to introduce three new articles in the general regulation of actions and procedures of management and tax inspection:

Article 39bis that develops the obligation to report annually the balance in virtual currency, an obligation that will affect any Spanish Exchange, which must provide all customer data through form 172.

Article 39ter that will establish the obligation to present an annual informative declaration on the operations of acquisition, transmission, exchange and transfer of cryptocurrencies, as well as the payments made and received with them. An obligation aimed basically at companies that want to operate in crypto (from a corporate Exchange) and that will be carried out through model 173. It will also include the obligation to report an ICO.

Finally, model 171 will establish the obligation to the owner of coins located abroad to report the value balance as of December 31 of each financial year as long as they exceed €50,000 as a whole.

This last obligation would only include those located abroad, that is, guarded by companies not established in Spain, so that digital currencies guarded by Spanish companies or by the holders themselves in cold wallets would not be exposed to this regulation.

All these information obligations will be presented between January 1 and March 31 of each fiscal year.

In any case, we will wait to have the final text and we will continue reporting.