Having cryptocurrencies is not illegal. Not declaring them when necessary, however, can be.

Be careful…

📌 1. Do I have to declare just for having bought cryptocurrencies? No. If you simply buy and hold cryptocurrencies, you do not have to declare them in your Income Tax Return (IRPEF) until you sell them or exchange them for another crypto, euros, or another asset. But you need to consider: 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 return? You must declare when you make gains, for example: You sell cryptocurrencies for euros. You exchange one crypto for another (this also counts as a transaction with a gain 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. 📊 Gains are taxed according to the following IRPEF brackets (2024): Up to €6,000 → 19% From €6,000 to €50,000 → 21% From €50,000 to €200,000 → 23% Over €200,000 → 27%-28%.

📤 3. What models can the Revenue Agency ask me for? Model 721 (new): To declare balances in foreign exchanges if the value exceeds €50,000 as of December 31. Penalties for not submitting it: from €5,000 for undeclared data. Model 100: Your income tax return, where gains or losses from your crypto transactions must be included. (Coming soon) Model 104: Will include data on crypto asset transactions within Spain. It will be linked to what is reported by national exchanges.

🔍 4. How does the Revenue Agency know what I'm doing with my crypto? Many platforms (like Binance, Coinbase, or Kraken) are starting to collaborate with the Revenue Agency and other tax agencies. Furthermore, money movements between your bank and an exchange leave a trace. The Revenue Agency cross-references data with other declarations and can open inspections if it finds inconsistencies.

✅ 5. Basic advice if you operate with cryptocurrencies Keep track 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 gains, consult a tax advisor specialized in crypto. Even if you haven't declared yet, prepare now: the regulatory environment is advancing and taxation on cryptocurrencies will become increasingly stringent.

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