Spain has yet to update the form to report bitcoin possession abroad – CVBJ

Highlights:

The economist advises to record the holding of bitcoins on foreign exchanges as of December 31.

This way you have information for a future statement.

Hours after the end of 2021, the Spanish government is still not offering more details on the 720 model for foreign asset declaration, a regulation that affects holders of cryptocurrencies in exchanges in other country.

The situation was highlighted by the tax economist José Antonio Bravo Mateu, through a post on Twitter. In it, the expert notes that the State has not published anything in the Official Journal of the date and that, thus, the limits and the reporting model are not yet known.

The 720 model is mandatory for all Spanish taxpayers who have more than 50,000 euros deposited abroad, both in financial institutions and in cryptocurrency exchanges. Securities, rights and insurance and income abroad are also covered by the regulations. The deadline for submitting it is January 1 to March 31 of each year.

Although in Spain the obligation to declare the possession of cryptocurrencies is not new, it is that The Treasury is stricter with controls in this regard. As CriptoNoticias reported a few days ago, several Spanish taxpayers have received requests for information about their possession of crypto assets.

Caption: In Spain, the holding of cryptocurrencies must be declared in the 720 model, but it has not yet been configured for this. Source: Twitter @jabravo

Like the Declaration of assets abroad, the wealth tax does not apply to all people, as this media explains in the aforementioned article. Only those who have assets exceeding 700,000 euros must pay it, which is the minimum exempt. Anything over this amount is liable to be taxed.

How do I prepare to declare my bitcoins in Spain?

The reporting period for assets abroad begins in January of the following year. That is to say that from the first day of 2022 the deadline for declaring the goods for the year 2020 opens.

However, as Bravo Mateu explains, the Spanish government has yet to configure the 720 model to include reporting of this type of digital asset.

Faced with this eventuality, the expert recommends taking a snapshot of assets held on the last day of 2021, that is to say on December 31 in “stock exchanges and day care centers located abroad”. Thus, if a posteriori “the limit to be declared and the form is dictated, you already have the data”, he explains.

If this detail is not taken into account, says Bravo Mateu, many people will be “broke and without the necessary data”. It should be noted that this only applies to funds in accounts abroad, but not to non-depository portfolios, specifies the economist.