The Tax Agency is already looking at your cryptocurrencies worldwide: how it affects your tax return and what you should do
More and more people are coming to our firm with the same concern: “I have cryptocurrencies on exchanges outside of Spain; can the Tax Agency find out?” The answer today no longer leaves room for doubt: yes, and it is becoming increasingly easy. As of this year, a significant international system has come into force that requires cryptocurrency platforms to identify users, record all their transactions, and share that information with the tax authorities of different countries. This means that even if your cryptocurrencies are on a foreign exchange, the information may still end up reaching the Spanish Tax Agency.
The objective of these new regulations is very clear: to prevent cryptocurrencies from being used to hide assets or undeclared gains. Therefore, intermediaries must collect data such as the purchase price, sale value, gains obtained, and the holder’s tax residence. All of this is automatically exchanged between tax administrations. In other words, what many previously considered difficult to track is now increasingly controlled and much more transparent for the Tax Agency.
In this context, it is essential to understand which cryptocurrency transactions must be declared. Tax is not only due on the classic “buy low, sell high” trading, but also on the exchange of one cryptocurrency for another, the payment for goods or services with crypto-assets, and even certain donations. All these operations can generate gains or losses that must be correctly reflected in the income tax return. Failure to do so can lead to penalties, surcharges, interest, and even greater problems in serious cases.
For this reason, our recommendation is always to act with foresight. It is important to keep an orderly record of your movements, keep reports from the platforms where you operate, and ensure that everything is correctly declared. Furthermore, in many cases, it is also advisable to review previous tax years to check if everything is in order before the Tax Agency can initiate any proceedings.
At Martínez Caballero Abogados, we regularly assist individuals who have operated with cryptocurrencies for years, taxpayers who have already received communications from the Tax Agency, or those who have moved countries and need to regularize their situation in Spain. In all these cases, we analyze each situation individually, assess the possible options for regularization, and accompany the client throughout the process, especially if a procedure is already open.
If you have cryptocurrencies and do not know if you are declaring them correctly, if you have received a communication from the Tax Agency, or if you simply want to ensure that your situation is secure, we can help you. At Martínez Caballero Abogados, we study your case, explain your obligations clearly, and accompany you to avoid unnecessary penalties and protect your interests.
DIANA CABALLERO AGUIRRE
CEO – Founding Partner
M&C Abogados
