Tax consulting methodology
The obligation to file information statements on balances, transactions, or holdings abroad may fall on the holders of the crypto-assets, or on those who custody them, among others.
Study of the client’s activity and crypto-assets
Examination of the client’s activity (holder, custodian service provider, ICO issuers, etc.), the types of crypto-assets, as well as the transactions carried out with them, and their location.
01.
Identification and submission of the information return
From the examination of all of the above, and if the client is obliged to declare, we will proceed to prepare and submit the corresponding information statement.
02.
Objective
Avoid tax penalties in complying with your reporting obligations
Use cases in advisory on reporting obligations for crypto-assets
Do you know how to comply with reporting obligations for crypto-assets efficiently and accurately?
With the rise of crypto-assets, tax authorities around the world have imposed new reporting obligations to ensure transparency in digital transactions. These regulations require rigorous and detailed compliance to avoid penalties. We present use cases that show how companies and individuals can manage it effectively, ensuring correct declaration and regulatory compliance.
Information return for virtual currencies
If you have cryptocurrencies in a foreign exchange, you are an individual or company, and the amount of the same exceeds 50,000 euros at the exchange rate, you are obliged to submit form 721 to the Tax Agency.
If you have any questions, or you want us from D292 to help you in the preparation and presentation of the form, to avoid possible penalties, do not hesitate to contact us.
Declaration of balances
Individuals and companies that provide services for safeguarding private cryptographic keys on behalf of third parties, either as a main activity, or in connection with another activity, are obliged to submit form 172.
Transactions with cryptocurrency
Form 173, on the other hand, obliges individuals and entities that provide exchange services between virtual currencies, or between these and fiat currency, that intermediate in said operations, or provide services for safeguarding cryptographic keys on behalf of third parties, to maintain, store and transfer cryptocurrencies, ICO issuers, or launchpad.
If you have doubts about whether the reporting obligation affects you or not, contact us and we will help you.
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Personalized approach and regulatory compliance
Advice on reporting obligations for crypto-assets is always adapted to the specific needs of each client, with a comprehensive approach that covers both legal and tax aspects.
Strict adherence to regulations in multiple jurisdictions, ensuring that each crypto-asset project is completely legal and secure.
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Do you want to know more about reporting obligations on crypto-assets?
Frequently Asked Questions
I have cryptocurrencies in a foreign custodian or exchange, do I have to inform the tax authorities in Spain?
If the balance exceeds 50,000 euros at the exchange rate, they will not have an obligation to inform the tax authorities. However, if you exceed that amount, you must declare them, submitting form 721 of the Tax Agency for this purpose.
A different question is whether you have to declare them in the wealth tax, if you are obliged to do so.
What if I have the cryptocurrencies deposited in a Spanish custodian or exchange?
If the third-party custodian is resident in Spain, or at least has a permanent establishment here, you are not obliged to make any information return. The exchange itself will be obliged to communicate the information to the Tax Agency.
¿Me puede sancionar Hacienda, si no declaro mis criptomonedas en el extranjero, estando obligado a hacerlo?
Yes. The penalty for not submitting form 721, being obliged to do so, amounts to 300 euros, if it is the Administration that requires you. If you have submitted it, but incorrectly, the penalty is 150.
In addition to the above, the tax authorities may sanction you with another fine of 20 euros, for unregistered record, or 10 euros per incorrectly declared record.
Resources on legal and tax advice on technology and digital assets
