Cryptocurrency disclosure now mandatory for models 172, 173, and 721: crucial information for investors
In an effort to bring transparency to the world of cryptocurrencies, the Spanish tax authorities have introduced three specific tax forms - Modelo 172, Modelo 173, and Modelo 721. Each form serves a unique purpose and has distinct requirements for those involved in cryptocurrencies.
**Modelo 172 and Modelo 173** are primarily used for declaring withholdings and payments on account, particularly by entities or professionals for reporting income or capital gains subject to withholding. While these models may apply to those generating income from cryptocurrencies subject to withholding, such as salary paid in crypto or certain business activities, there is no explicit detail available specifically for cryptocurrencies. Generally, Modelo 172 is a quarterly declaration of withholdings, and Modelo 173 is the annual summary of these withholdings.
**Modelo 721**, on the other hand, is a form used to declare assets held abroad, including cryptocurrencies in foreign wallets or exchanges. Residents must submit Modelo 721 if their foreign crypto wallets exceed €50,000 in value as of December 31st each year. This is a mandatory reporting requirement to disclose overseas assets for tax transparency purposes.
It is essential for crypto holders or professionals with crypto income to consult the Spanish tax agency or a tax advisor for compliance on these forms, as there is a lack of precise public details for Modelo 172 and 173 related to crypto.
Modelo 721 requires personal information like name and NIF, data on the custodian of the assets, and their valuation in euros as of December 31. Each operation may be subject to specific taxation, and precise valuation in euros is crucial to avoid errors. Model 721 is intended to inform about cryptocurrencies located outside the national territory.
Model 173 collects detailed information about operations performed, including the identity of those making the transactions, the currency used, the amounts negotiated, and the value and date of the transactions.
At the European level, regulations like MiCA (Markets in Crypto-Assets) aim to harmonize the control of digital assets throughout the Union, strengthening legal security and protecting users. These regulations are expected to have an impact on the Spanish crypto tax landscape in the future.
It is crucial for crypto holders and professionals to stay informed, maintain orderly accounting, and comply with new tax obligations to avoid legal problems and maintain confidence in the crypto ecosystem. Ignorance or negligence in declaration can trigger legal mechanisms that allow the Treasury to seize cryptocurrencies to settle outstanding tax debts. Properly declaring and filing cryptocurrencies on time is crucial to avoid sanctions ranging from economic fines to seizures of digital assets.
In summary:
| Form | Purpose | Crypto-specific requirement | |--------------|------------------------------------------------|-------------------------------------------------------| | Modelo 172 | Quarterly declaration of withholdings | Possibly for crypto income subject to withholding, but no explicit details found | | Modelo 173 | Annual summary of withholdings | As above | | Modelo 721 | Declaration of assets held abroad | Required if foreign crypto wallets exceed €50,000 as of Dec 31 |
References: [1] TokenTax guide on crypto taxes in Spain [2] European Union regulations and fintech laws [3] MiCA (Markets in Crypto-Assets) [4] Spanish tax authorities' website [5] Spanish tax agency's guidelines for cryptocurrencies
Custody is essential in filling out Modelo 721, as it requires the disclosure of the custodian of assets held abroad, which includes cryptocurrencies in foreign wallets or exchanges.
Proper accounting and understanding of personal finance, including cryptocurrencies, is crucial when dealing with Spanish tax forms like Modelo 172, 173, and 721, as there is a lack of precise details regarding cryptocurrencies in the public information available.
