Spanish Treasury Admits That Cryptocurrency Holdings Don’t Need to Be Declared Under Model 720 – Taxes Bitcoin News


Spain’s Ministry of Treasury has admitted that Spanish citizens are not forced by law to declare their cryptocurrency holdings under the disputed Model 720, which involves declaring funds held abroad. While the antifraud law approved last year established this duty, there are still no rules regarding cryptocurrency after Model 720 was declared to be illegal by European laws.

No Obligation to Include Crypto in Tax Statements Under Model 720

The Spanish Treasury Ministry has admitted that the current legal framework does not include the obligation for Spaniards to declare their cryptocurrency holdings under Model 720, which has to do with funds held abroad. The Spanish Tax Agency confirmed that citizens don’t have any duty to report their cryptocurrency holdings, not even in an informative way, after the underlying ruleset has not been established by the authorities.

Track live crypto price of 10000+ coins!


This means that citizens need not include any of their crypto-related info in the upcoming Model 720 statement corresponding to last year’s movements, even with the antifraud law approved last year establishing it. On this development, Esau Alarcon, Attorney in Gibernau, stated:

You don’t have to declare. There is no information to declare. There are no values included, nor is there cryptocurrency data within the value boxes of Model 720. There is no reasonable interpretation that allows us to understand that cryptocurrencies are declared in this model.

No Changes in Other Areas

Other tax areas also suffered no changes regarding the declaration of cryptocurrencies. The income tax form does not include a specific area to include cryptocurrencies. The only change that has been executed is that now cryptocurrencies have a specific area that needs to be filled out by taxpayers. However, as local media informs, this is just a formality, because Spanish citizens were already declaring cryptocurrency as wealth in other ways.

Related:  India's Central Bank Governor Warns About Crypto After Collapse of Terra LUNA, UST – Regulation Bitcoin News

There are projects to include cryptocurrencies in a new, updated Model 720 in the future, and that new regulation might be approved for next year’s tax season. The old Model 720 was declared to be illegal due to some of its astounding penalties by European courts, and some taxpayers are already being reimbursed by authorities regarding penalties paid under this model.

The remaining law includes the obligation to inform about cryptocurrency but leaves out the penalties criticized by the EU.

What do you think about the taxation situation in Spain regarding cryptocurrency holdings? Tell us in the comments section below.

sergio@bitcoin.com'
Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.




Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: