Do I need to declare the sales operations I perform on Bit2Me to the Tax Agency?

Yes, operations you carry out with cryptocurrencies are subject to declaration in Spain.

In Spain, operations carried out with cryptocurrencies are treated fiscally as capital gains or losses in the Personal Income Tax (IRPF).

Declaration in IRPF (Income Tax)

The following operations will generate a capital gain or loss that must be declared in the IRPF:

• Sale of cryptocurrencies.

• Exchange of cryptocurrencies for other digital currencies (swap).

• Exchange of cryptocurrencies for FIAT money (Euros or other traditional currency).

• Payment for goods or services using cryptocurrencies.

How to declare gains and losses:

• Capital gains and losses must be included in the specific section: “Capital gains and losses from the transfer and exchange of virtual currencies by individuals”.

• Losses incurred may be offset against gains from that year, or subsequent years, if certain legal circumstances are met.

Other income you must declare:

• Income from Staking: This will generate movable capital income and must be declared in the corresponding section.

• Income from Mining: This will generate movable capital income or income from economic activity, depending on whether it is generated within the framework of a business or professional activity.

Declaration in Wealth Tax

In case you are obliged to file the Wealth Tax declaration, cryptocurrencies must be declared at their market price on December 31 of each year, as indicated by the Tax Agency in the Binding Consultation V2679-21.

• Box to fill in: Box 46, titled “Balances in virtual currencies”.

You must complete the following fields:

1. Percentage of ownership.

2. Denomination or type of virtual currency.

3. Number of units.

4. Value in euros.

Risks of not declaring

In case you have obtained gains from cryptocurrencies and have not included them in your declaration, the Tax Agency could apply a penalty from 50% to 150% of the IRPF amount that should be paid for that gain.

Bit2Me support tools

To facilitate your declaration, you can export all your transaction information from Bit2Me:

• Download your activity and Tax Report: You can check how to obtain the Excel of movements and the Bit2Me Tax Report in the following link: How to export all activity on Bit2Me? How to obtain tax information on Bit2Me? (only for residents in Spain)

• Declaration Guide: If you need detailed instructions to declare your cryptocurrencies, consult our article: TAX: Steps to file the IRPF declaration (Spain only)