Category : Crypto

Crypto Taxation News Resident

M 720 - Declaration of foreign assets

By dneutiens@segurantis.com

Form M 720 for residents

On the 1st of January the declaration period for foreign assets starts if you are resident in Spain. It is important that this informative declaration of your assets abroad is completed. From this year on wards (2022 => 2021 taxable year) all crypto coins held abroad have to be declared as assets. If you have crypto coins in your possession, it is advisable to contact us to find out whether or not you need to declare these assets.

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Crypto Financial Tax News

Crypto currencies and taxation in Spain

By dneutiens@segurantis.com

The Spanish taxman gets his money's worth

Those who have invested in crypto currencies will probably have had a good 2020. The prices rose sharply in 2020 and 2021 is also a year where the prices remain fairly stable after what was a turbulent spring.

Anyone who has cashed in the profits will have to take account of them in their personal tax return. The Spanish tax authorities consider the profits as a form of investment return (similar to the profits, dividends, interest, etc. from investments such as shares, investment funds, derivatives, etc.).

If the profits have not been realised, i.e. you have not sold your crypto coins, they do not fall under returns achieved and you are exempt from the declaration. If the total value of your crypto portfolio is above the exemption limit of the wealth declaration, then you are obliged to file the wealth declaration and to report the total value that has been invested.

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Crypto Financial Tax News

Spanish wealth tax

By dneutiens@segurantis.com
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Spanish wealth tax is applicable to residents

If you are a permanent resident in Spain and have assets of at least EUR 500,000, it is best to check whether you are eligible for the wealth tax. 

There is an exemption limit and it can differ per autonomous community. Generally, the exemption limit is 700,000 euros, from which you may deduct your own home up to a maximum of 300,000 euros. But in some communities, such as Catalonia, the exemption limit is 500,000 euros. There are 17 federal states in Spain so keep this in mind.

In order to determine that you have to file a tax return on your assets, you will have to attach a value to your assets, which is determined annually on 31/12/.... of the calendar year. So, for example, you will have to determine a value for investments (shares, funds, ...), but also other forms of investments including crypto coins. It is your responsibility to reflect that value correctly.

If the sum of your investments, real estate (minus own home) exceeds the exemption limit, you will have to submit a wealth tax return.

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