What will the Treasury do if I don’t declare my bitcoins abroad?

The period for declaring Bitcoin (BTC) and other cryptocurrencies held by Spanish users outside the country is coming to an end. This March 31 closes the period established by the tax agency, an office dependent on the Ministry of Finance.

Since last January, Spanish Are Complying With New Obligations Regarding Cryptocurrenciesbased on model 721, It contains an informative declaration that all taxpayers who hold virtual currencies abroad must formalize them. This is in terms of your holdings more than 50,000 euros, Till December 31 last year.

As per the rules, the organization offers a grace period of four days if the model cannot submit online due to “technical issues”. In that sense, those who do not declare their bitcoins or do so after the deadline may face sanctions,

It has been established that Fixed fine of 5,000 euros For each data or set of data referring to each type of cryptoasset that is not included in the model; or whose information is incomplete, inaccurate or incorrect. The amount of fine in these cases is expected to be minimum. approximately 10,000 euros,

On the other hand, if the model is submitted after the deadline, the fine ranges between 100 euros for each data or set of data. Minimum for this reduction It has been set at 1,500 euros,

Obligated subjects must provide the name, surname, company name and tax identification number of the country of residence of the people or entities providing cryptocurrency services.

The agency says that it is not mandatory to submit the declaration form every year. After the first time, Form 721 is re-submitted only if the balance of cryptocurrency held abroad is An increase of more than 20,000 euros compared to the previous statement,

Doubts about self-custody wallet

The new requirement is contained in Article 42 of Royal Decree 1065/2007 of July 2023. And it lies in the general regulation of tax management and inspection functions for the application of taxes.

Its application responds to the revision of European rules on money laundering and terrorist financing. This was also promoted in the 2021 anti-fraud law.

So far, the doubts that have arisen regarding the Model 721 have mostly been related to cryptocurrencies. Which are kept in self-custody wallet,

As reported by CriptoNoticias, experts in the field explain that if the user is the one who maintains control of the wallet’s private keys, this means that the assets deposited there are not abroad,

Irrespective of whether they are cold wallets (without internet connection) or hot wallets (with connection), these holdings or balances should be declared not under Model 721 but under Model 714, which relates to property tax declaration,

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