The spanish government has been the European country where there have been more approaches to regulate bitcoin (BTC) and the rest of the ecosystem. Now the long-awaited obligation to report on the cryptocurrencies that its citizens have abroad has arrived, which will be framed in a new tax declaration model.
In image and similarity to the questioned Model 720, the Spanish Ministry of Finance is about to present Model 721. This informative declaration of the assets of a person abroad is now extrapolated to digital assets, under the promise of fining those who do not stick to the law .
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Model 720 is an informative declaration that came into force in 2012, by the former Minister of Finance, Cristóbal Montoro. In it, Spaniards are obliged to declare their assets outside the country and impose significant sanctions on those who do not.
According to the local media VozPópuli, Model 721 requires cryptocurrency owners to submit the information form within the first three months of the year. These are investors who have balances greater than 50,000 euros in digital assets, disposed of in service providers (wallets or exchanges) that do not reside in Spain.
Whoever fails to comply will have to face large fines. The fact of not reporting cryptocurrency holdings abroad can cost an amount of 5,000 euros for each data, or set of data, of each virtual currency that should have been included in the declaration. The same goes for someone who has misreported their money.
In the event that a person declares outside the established period or by means not approved by the Treasury, the amount of the fine will be 100 euros for each data or set of data referring to each virtual currency, with a minimum of 1,500 euros. This sanctioning regime has already been seen, as was said, in Model 720.
The 721, in addition to forcing banks, savings banks, insurers and public entities to declare, adds to a sector that is still growing in that country , despite the fact that the penetration of bitcoin has given rise to talk in Spain.
Model 720, be annuled bt spanish government?
The arrival of article 721 occurs at a time when article 720, which has an open file in the European Commission against Spain, will be the subject of a ruling by the Court of Justice of the European Union (CJEU) this month of January. It is speculated that a decision by the arbitrator could lead to the annulment of the disputed order.