📌 1. Do I have to declare just for buying cryptocurrencies?

No. If you simply buy and hold cryptocurrencies, you do not need to declare them in your income tax (IRPF) as long as you do not sell or exchange them for another crypto, euros, or another asset.

But you must take into account:

  • If you use Binance or another foreign exchange and your wallet exceeds €50,000, you may be required to submit Model 721 (mandatory from 2024).

💰 2. When do I have to declare in the income tax?

You must declare when you make profits, for example:

  • You sell cryptocurrencies for euros.

  • You exchange one crypto for another (this also counts as a transaction with profit or loss).

  • You use cryptocurrencies to pay for goods or services.

These operations generate a capital gain or loss that you must reflect in your income tax return.

📊 Profits are taxed according to the following IRPF brackets (2024):

  • Up to €6,000 → 19%

  • From €6,000 to €50,000 → 21%

  • From €50,000 to €200,000 → 23%

  • More than €200,000 → 27%-28%

📤 3. What models can the Tax Agency require from me?

  • Model 721 (new): To declare balances in foreign exchanges if the value exceeds €50,000 as of December 31.

    • Penalties for not submitting it: starting from €5,000 for each undeclared item.

  • Model 100: Your income tax return, where you must include the profits or losses from your operations with cryptos.

  • (Coming soon) Model 104: Will include data on cryptocurrency operations within Spain. It will be linked to what national exchanges report.

🔍 4. How does the Tax Agency know what I do with my cryptos?

  • Many platforms (like Binance, Coinbase, or Kraken) are starting to collaborate with the Tax Agency and other tax authorities.

  • In addition, money movements between your bank and an exchange leave a trace.

  • The Tax Agency cross-references data with other declarations and can open inspections if inconsistencies are found.

✅ 5. Basic tips if you trade cryptocurrencies

  • Keep a record of all your transactions (purchase price, sale, dates, fees).

  • Use tools like Koinly, CoinTracking, or Accointing to help you calculate your taxes.

  • If you trade frequently or have significant profits, consult a tax advisor specialized in crypto.

  • Even if you haven't declared yet, prepare yourself now: the regulatory environment is advancing, and taxation on cryptocurrencies will be increasingly strict.

Knowing your obligations and acting transparently is the best way to protect yourself and build a solid long-term wealth.

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