Cryptocurrencies and NFTs must be declared on your taxes in Spain, with specific requirements and models depending on your activities. Here's what you need to know:

Tax Obligation Overview

• You must declare cryptocurrency activities if you buy, sell, or generate profits
• All crypto transactions affect your Income Tax differently
• This includes trading, exchanging, and staking operations

Required Tax Models in Spain

• Model 172: For crypto operations by Spain-based entities
• Model 173: For declaring balances in exchanges and centralized platforms
• Model 721: For crypto assets held abroad (pending regulation)
• Model 720: Required for non-cryptocurrency foreign assets above certain thresholds

Buying and Selling Operations

• Capital gains or losses must be reported
• The tax rate depends on your total earnings
• Keep detailed records of all transactions, including purchase and sale prices
• Document dates and amounts for accurate reporting

Cryptocurrency Mining Taxation

• Mining income is considered economic activity
• Must be declared as professional income
• May require registration as self-employed
• Include expenses like electricity and equipment

NFT Taxation

• NFTs are taxed similarly to cryptocurrencies
• Gains from NFT sales must be declared
• Consider both creation and trading activities
• Document all transactions and valuations

Key Compliance Tips

1. Monitor all crypto transactions carefully
2. Maintain detailed records of purchases and sales
3. Keep proof of all operations
4. Consider consulting a tax advisor
5. Stay updated on regulatory changes

Remember that failure to declare crypto assets can result in significant penalties. When in doubt, always consult with a qualified tax professional who understands cryptocurrency regulations in Spain.

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