Spanish Treasury Admits That Cryptocurrency Holdings Don’t Need to Be Declared Under Model 720 – The Spanish Treasury Ministry has confirmed that the existing legal framework does not require Spaniards to register their cryptocurrency holdings under Model 720, which deals with funds kept outside of Spain.
After the underlying ruleset has not been established by the authorities, the Spanish Tax Agency confirmed that citizens have no obligation to register their cryptocurrency holdings, even in a non-informative manner.
This means that, despite the antifraud law passed last year creating it, citizens will not be required to disclose any crypto-related information in the next Model 720 statement relating to last year’s movements.
Esau Alarcon, a lawyer in Gibernau, commented on the development, saying:
“You are not required to declare. There isn’t anything to report. There are no values in the Model 720 value boxes, and there is no cryptocurrency data. There is no logical way to explain that cryptocurrencies are announced under this model.”
Other tax categories have remained unchanged when it comes to the declaration of cryptocurrency. The income tax form does not have a separate section for cryptocurrency. The only change is that cryptocurrencies now have a separate section where taxpayers must give out information.
However, according to local media, this is really a formality, as Spanish residents had already declared cryptocurrency as wealth in other ways.
In the future, there are plans to include cryptocurrencies in a new, revised Model 720, and that new legislation might be passed in time for next year’s tax season.
Spanish Treasury Admits That Cryptocurrency Holdings Don’t Need to Be Declared Under Model 720 – The former Model 720 was found illegal by European courts because of some of its draconian penalties, and some taxpayers have already been compensated for penalties paid under this model.
The remaining regulation includes a requirement to warn people about bitcoin but excludes the sanctions that the EU has challenged.