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If you change from Bitcoin to another virtual currency
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In this case taxes would have to be paid for the profits of the operation, as there is a change in equity. Again, the difference between the value of buy and sell will be taken into account.
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In this case taxes would have to be paid for the profits of the operation, as there is a change in equity. Again, the difference between the value of buy and sell will be taken into account.
If this is true, being tax compliant in Spain becomes a hell for an active trader.
Strangely it contradicts somewhat with:
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Bitcoins operate through virtual wallets, which is where these virtual coins are stored. From a point of view of the taxation of the virtual currencies, these have no real value until you convert them to a national currency, that is, to euros in the Spanish case.
No real value before conversion to Euros, but liable to taxation in change of equity between cryptos.
I know some other European countries agreeing with the "no real money before converted" thinking, but sane enough not to say you need to announce profits trading between BTC/altcoin pairs. Can someone confirm this schizophrenic ruling? How in the world can they enforce it?
Quotes Chrome translated from this source:
http://www.bolsamania.com/declaracion-impuestos-renta/como-tributan-los-bitcoins-en-la-renta/
Adding to my earlier questions the link for the site provided by Don Pedro Dinero above:
(http://www.bolsamania.com/noticias/declaracion-renta/los-impuestos-del-bitcoin-y-el-ether-asi-tributan-operadores-mineros-y-comercios-que-trabajan-con-criptodivisas--2724307.html)
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The calculation of this equity gain is obtained from the difference between the acquisition value and the transfer value. The second "is very easy to calculate because it is what you get for the value of the bitcoins," clarifies De la Cruz. But the complication arises in the value of acquisition, since you may have bought criptomoneda at many different prices, so you must choose an accounting criterion to decide how much we paid in your day for each of the currencies we sell. The expert on legislation on blockchain recommends the FIFO system ("First in, First out"), that is to say, the first ones that enter are the first ones that come out, because "since the ultimate goal is speculation, just as in actions, it is better to apply the FIFO", he justifies. "Nor would it be a bad approximation to apply a weighted average price criterion. That is, take stock of the bitcoins that have been taken during the year and calculate the average purchase price, "adds De la Cruz.
There is a derivation of this subject that is the conversion of bitcoins to another criptomoneda of the universe of more than 300 'altcoins' that exist at present . "From my point of view, if you switch from bitcoins to ether, for example, I'm already making a pecuniary alteration," says Grant Thornton's lawyer. But the majority of those who liquidate the bitcoins only do so when they switch to euros, since it is when Hacienda has the reference that there has been an income in the bank account, an option that the specialist questions, since the criptomonedas do not enjoy of the profits of the investment funds , in which one can move from one to the other and the latent capital gains are maintained.
There is a derivation of this subject that is the conversion of bitcoins to another criptomoneda of the universe of more than 300 'altcoins' that exist at present . "From my point of view, if you switch from bitcoins to ether, for example, I'm already making a pecuniary alteration," says Grant Thornton's lawyer. But the majority of those who liquidate the bitcoins only do so when they switch to euros, since it is when Hacienda has the reference that there has been an income in the bank account, an option that the specialist questions, since the criptomonedas do not enjoy of the profits of the investment funds , in which one can move from one to the other and the latent capital gains are maintained.
I'm still confused about value gained between alt transactions...
All my BTC purchases happened years ago with insignificant amounts and thus I'm not even interested in reporting deductions of sales.
If I became a tax resident in Spain, could I just simply report taxes simply by declaring capital gains tax on the BTC converted to Euros?
Can a Spanish resident trader simply sell BTC to EUR into bank account and just report that as capital gains and be done with it?
For me I couldn't justify residing in a jurisdiction which required me to report every single trade I've made between cryptocurrencies...
Anyone got a clue / where to get completely reliable information about this?
First, these are the Spanish lawyers who know the most about cryptos taxes. I may go to ask them in the future.
https://www.abanlex.com/areas-de-practica/derecho-de-internet/bitcoin-y-otras-criptomonedas/
As for what you are asking for Hacienda (the Spanish law department): investing in cryptos is like investing in forex, you only pay taxes on them when you convert them into Euros, because you may lose everything. There are some exceptions to this like the Impuesto del Patrimonio, but as far as what you are asking I think it will be enough to declare them when you convert them into euros.
That quote you put is the opinion of a lawyer, he says that you should pay taxes when you exchange cryptos for btc or the other way around, but Hacienda hasn’t means to check that nowadays.
This taxation is like when you buy and sell stocks or funds. You may have bought them at different times and prices, so if you sell part of your investment, the FIFO system applies.
If you are taking about a significant amount of money, it is worth spending a little bit asking abanlex lawyers. For small amounts, if you pay taxes, Hacienda is not likely to mess with you.
