The Spanish Ministry of Treasury has recognised that residents are not required by law to register their cryptocurrency ownership under the Model 720, which requires revealing monies stored overseas. While the antifraud law passed last year introduced this obligation, there are currently no cryptocurrency restrictions in place after the Model 720 was pronounced unlawful by European laws.
The Spanish Treasury Ministry has acknowledged that the existing legal framework does not require Spaniards to register their cryptocurrency ownership under Model 720, which deals with money stored overseas. After the basic rule set has not been defined by the authorities, the Spanish Tax Agency affirmed that citizens have no need to register their cryptocurrency holdings, even in a non-informative manner.
This implies that citizens are not required to include any crypto-related information in the next Model 720 statement.
No Changes in Other Areas
There were no modifications in other tax categories related to the declaration of cryptocurrency. The only difference is that cryptocurrencies now have a separate section that taxpayers must fill out. According to local media, this is only a formality, as Spanish residents have already declared bitcoin as wealth in various ways.
In the future, there are plans to incorporate cryptocurrencies in a new, revised Model 720, and this new legislation might be passed in time for next year’s tax season. European courts found the previous Model 720 unconstitutional because of some of its draconian penalties, and some taxpayers have already been refunded for fines paid under this model.