Investing in cryptocurrencies is becoming increasingly popular due to their high long-term profitability, especially by hiring expert brokers to effectively manage this highly volatile asset.
According to the Spanish law on the prevention of money laundering, a virtual currency is a digital representation of value that is neither issued nor guaranteed by a central bank or public authority, is not necessarily associated with a legally established currency and does not have the legal status of currency or money, but is accepted as a medium of exchange and can be transferred, stored or traded electronically.
Virtual currencies are intangible goods, computable in units or fractions of units, which are not legal tender, which can be exchanged for other goods, including other virtual currencies, rights or services, and which can generally be acquired or transferred in exchange for legal tender.
Each virtual currency has its origin in a specific computer protocol, different scope of acceptance, different liquidity, value and denomination, different virtual currencies are different goods.
The exchange between virtual currencies or exchange for legal tender gives rise to income which is classified as a capital gain or loss.
The amount of the capital gain or loss will be the difference between the acquisition and transfer values of the assets, with the possibility of deducting investment costs and transaction expenses.
Finally, both in the case of transfer of virtual currencies in exchange for other virtual currencies and in the case of transfer in exchange for euros, the capital gain or loss must be included in the tax period in which the change in assets takes place. In other words, at the time when the virtual coins are delivered by the taxpayer under the purchase and sale contract, regardless of when the sale price is received, and the capital gain or loss must therefore be allocated to the tax period in which the delivery is made.
Additional information. Article footer
Álvaro Morales Sousa, Partner, TempleCambria Lawyers
(+34) 695262097 email@example.com
Please note that any information provided through TempleCAMBRIA’s blogs, website or social media pages is for informational purposes only and should not be used as the basis for making any particular decisions. Please remember that legislation and case law can change over time and the articles published through this medium may not be up-to-date, which is why we recommend you seek individual specialist advice. TempleCAMBRIA law firmprovides legal services to international clients who have become enamoured with the Costa de la Luz. Our job is to ensure that their decision to settle down or set up business here is a successful one, and that their time here becomes the best experience of their lives.