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Bitcoins in the tax return


Investments in bitcoins are taxed:

An investor who through a broker has been carrying out operations with cryptomoney coins during the fiscal year 2017 and has obtained profits must incorporate them to his patrimonial gains of the taxable base of the saving of IRPF, taxing for them to a percentage that can vary between 19% and 23% depending on the obtained profit. The same applies if you have traded with bitcoins through CFDs or if you have traded on non-regulated trading platforms.

Taxable Savings Base - Earnings

Income tax 2017 From 0 to 6.000€ 19%.

From 6.000€ to 50.000€ 21%.

More than 50.000€ 23%.

Under the Income Tax Law on Natural Persons (IRPF) it would be adapted to Article 33:
Variations in the value of the taxpayer's net worth are capital gains and losses that are evidenced by any alteration in the composition of the taxpayer, unless they are classified as income by this Law.

How to calculate capital gains with crypto coins?

The calculation of capital gains with cryptomoney is obtained from the difference between the acquisition value and the transfer value, excluding expenses (commission, spreads and other expenses related to the operation). If the investor has carried out more than one transaction with cryptomoney, it must apply the FIFO (first in, first out) criterion; i. e. the first sales of cryptomoney correspond to the acquisition value of the first transaction, as a single transaction, just as it does in the taxation of shares.

It is important to point out that even if you do not make real cash the benefits with crypto coins you will have to present the benefits in your Income Statement; that is, even if you do not take the Bitcoins out of your virtual purse, you will have to pay tax for them.

Losses operating on cryptomoney?

The capital losses derived from the trading of cryptomoney can be offset against other capital gains from Forex, CFDs, Options or Cryptomodels in the same year. If, after offsetting them with the annual profits, we still have capital losses due to the operations with cryptomoney, they can be compensated with a limit of 15% with the Income from Capital Furniture. If we still have capital losses, these can be offset against the taxable income for the next 4 years.

Form 720 with cryptomonons

A doubt for investors of coin-crypt investors arises at the time of presenting 720 form for goods and rights abroad that exceed € 50,000; different experts in the matter indicate that if the money in crypto is kept in virtual wallets there is no geographical location of them and therefore would not have to present forml 720 for the coin-cryptomonedas. Although the Tax Agency has not yet made a statement on the obligation to report through form 720 amounts over € 50,000 in crypto currencies, we must wait. Although it's more than likely they'll have to testify.

Josep Navarro's picture
Josep Navarro es Licenciado en Económicas por la UB, especializado en Inspecciones Tributarias, con más de 25 años de experiencia en asesoría fiscal para empresas y particulares en España.