Economy Income 2022: How are cryptocurrencies declared?

Despite its tremendous ups and downs and risks, cryptocurrencies or virtual currencies continue to be a financial alternative for many Spaniards. Although there has always been an obligation to declare these digital assets, in 2023 the Tax Agency has promoted research on bitcoins and other currencies to locate assets with the aim of avoiding tax evasion and fraud.

One of these controls is the Income campaign, which in 2021 introduced the obligation to declare capital gains and losses obtained from operations with cryptocurrencies. For Income 2022, which begins on April 11, 2023, taxpayers are still required to provide these data.

However, not all taxpayers know that cryptocurrencies count when it comes to complying with the Treasury. In Spain, 4.4 million people invest in cryptocurrencies, according to a study cited by the General Council of Economists (CGE) of the Association of Financial Users (Asufin), of which more than 40% believe that they do not have to pay taxes for the profits obtained and 28.4% recognize that they have to pay taxes for it, reports Europa Press.

In the 2021 Income Campaign, continues the CGE, only 35,200 declarations incorporated profits derived from operations with crypto assets, for an amount of more than 759 million euros. For their part, in the Wealth Tax, 1,275 taxpayers have included a total of 911.9 million euros as the balance of their cryptocurrency portfolios.

It should be remembered that the Tax Agency considers cryptocurrencies, for tax purposes, as intangible assets, “computable by units or fractions of units, which are not legal tender, but are used as a means of payment as they can be exchanged for other assets , including other virtual currencies, rights or services if they are accepted by the person or entity that transmits the good or right or provides the service”. Come on, they must be declared.

From Income 2021, the declaration has a new box, 1626, to identify the balances of virtual currencies. Entering code 0, the section “Equity gains and losses derived from transfers of other assets” corresponds to “Virtual currencies”.

The profits obtained are taxed in the tax base of savings with the following tax rates:

To calculate what has been earned from the sale of a cryptocurrency, the sale value must be subtracted from the purchase value, making the change to euros.

Regarding the losses, these can be offset with other gains, reducing the payment of taxes, by 25% per year during the following four years. Likewise, it must be taken into account that a taxpayer who has digital currencies in his wallet but without making operations (trading) should not include it in the declaration.

According to the criteria of The Trust Project

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