Spain’s Treasury Ministry has acknowledged that under the controversial Model 720, Spanish citizens are not compelled by law to declare their cryptocurrency holdings, which includes declaring money held abroad. While an anti-fraud law approved last year established this duty, there are still no regulations in place regarding cryptocurrencies even after the Model 720 was declared illegal by European law.
Model 720. There is no obligation to include crypto in tax statements under
The Spanish Treasury Ministry has acknowledged that the current legal framework does not include an obligation for Spaniards to declare their cryptocurrency holdings under Model 720, which has to do with money held abroad. The Spanish Tax Agency has confirmed that citizens have no duty to report their cryptocurrency holdings, even in an informative manner, since the underlying rules have not been established by the authorities.
This means citizens are not required to include any of their crypto-related information in the upcoming Model 720 Statement in line with previous years’ movements, even under the anti-fraud law that established it last year. Along with On this development, Esau Alarcon, the attorney in Gibernau, said:
You don’t need to declare. There is no information to declare. There is no price included, nor is the cryptocurrency data within the Model 720’s price boxes. There is no proper explanation that allows us to understand that cryptocurrency is declared in this model.
No change in other fields
There was no change in the announcement of cryptocurrencies in other tax areas as well. Income tax forms do not include a specific field for inclusion of cryptocurrencies. The only change that has been implemented is that now cryptocurrencies have a specific area that needs to be filled by taxpayers. However, as reported by local media, this is just a formality, as Spanish citizens were already declaring cryptocurrencies as money in other ways.
There are projects to include cryptocurrencies in a new, updated Model 720 in the future, and that the new regulation could be approved for next year’s tax season. The older Model 720 was declared illegal by European courts due to some of its surprising penalties, and some taxpayers are already being reimbursed by the authorities in relation to penalties paid under this model.
The rest of the law includes an obligation to notify cryptocurrency but omits the penalties criticized by the European Union.
What do you think about the taxation situation in Spain with respect to cryptocurrency holdings? Tell us in the comments section below.
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