14. Virtual currencies

Regulations: Art. 24 Wealth Tax Law

"Virtual currency" (also called "cryptocurrency") is defined in Article 1.5 of Law 10/2010, of April 28, on the prevention of money laundering and the financing of terrorism as "that digital representation of value not issued or guaranteed by a central bank or public authority, not necessarily associated with a legally established currency and which does not have the legal status of currency or money, but which is accepted as a medium of exchange and can be transferred, stored or negotiated electronically ."

Taking this definition into account, virtual currencies are considered, for tax purposes, as intangible assets, computable in units or fractions of units, which are not legal tender, but which are used as a means of payment as they can be exchanged for other assets, including other virtual currencies, rights or services if they are accepted by the person or entity that transfers the asset or right or provides the service. Since virtual currencies have economic content, like the rest of the assets owned by the taxpayer of the Wealth Tax, they must be declared.

In the Wealth Tax, the taxpayer must declare the balance of each virtual currency different from the one he owns on the accrual date, that is, on December 31 of each year, valuing it at market price on the aforementioned date, that is, at its equivalent value in euros on that date.