Hacienda's Stark Warning About the Income Tax Return: Required to Do It

The Tax Agency has issued an important reminder: all taxpayers must file the Income Tax Return for the 2024 fiscal year. This year, significant changes are introduced, especially regarding cryptocurrency transactions.

New Developments in Cryptocurrency Transaction Reporting in 2024

Starting from the 2024 fiscal year, Hacienda has strengthened control over cryptocurrency transactions. Exchanges located in Spain are required to report all transactions made by their users, including purchases, sales, exchanges, and year-end balances.

Additionally, it is expected that by the end of 2025, exchanges in the European Union will also share this information with Spanish tax authorities, thanks to the transposition of the administrative cooperation directive.

How to Calculate Gains or Losses for Income Tax

To correctly report your cryptocurrency transactions, it is essential to keep a detailed record of all transactions. Capital gains or losses are calculated by subtracting the acquisition value from the transmission value of the cryptocurrency.

That is, if you sell or exchange a cryptocurrency for a value higher than you acquired it, you obtain a gain; if it is lower, a loss. These gains are taxed in the savings base, with tax rates ranging from 19% to 28%, depending on the amount.

Model to Submit

In addition to the Income Tax Return, you may need to submit Model 721 with the declaration of cryptocurrency balances abroad as of December 31. This model is mandatory if you hold cryptocurrencies on platforms or wallets outside Spain and your balances exceed certain limits established by current regulations.

To properly comply with your tax obligations and avoid possible fines, Hacienda recommends keeping detailed records. Note all your cryptocurrency transactions, including dates, amounts, acquisition, and transmission values.

Do not omit any transaction. There are specialized applications and software that help you keep precise control of your cryptocurrency movements. If you have doubts, it is advisable to consult a tax advisor specialized in crypto assets. cincodias.elpais.com

How to Avoid Hacienda Sanctions: Note These 'Tips'

Not declaring or doing so incorrectly can lead to sanctions from Hacienda. To avoid them, submit your declaration within the established deadlines. The 2024 Income Tax campaign begins on April 2, 2025, and ends on June 30, 2025.

Before submitting your declaration, ensure that all data is correct. If you detect an error after submitting the declaration, you can make a corrective self-assessment to rectify it.