As cryptocurrencies grow in popularity as both a payment method and an investment, crypto taxes in Spain have become a key concern for investors and traders. Whether you’re buying, selling, mining, or staking cryptocurrencies, understanding how crypto tax in Spain works is vital for staying compliant and maximizing your returns. This guide covers everything from how crypto is taxed in Spain to potential penalties for non-compliance and strategies for avoiding crypto tax liabilities.
Is Cryptocurrency Taxed in Spain?
Yes, cryptocurrency is taxable in Spain. The Spanish tax authority, Agencia Tributaria, treats crypto as a capital asset, which means it can be subject to income and savings taxes, depending on the situation. Here’s a breakdown of how crypto taxation works for individual investors:
- Selling, or spending crypto: Any gains are considered savings income and taxed between 19% and 28%.
- Mining rewards: These are treated as income from freelance activities and taxed as part of your personal income.
- Staking rewards: Considered investment income, and taxed at 19% to 28% range.
- Wealth tax: Depending on the region and the value of your crypto holdings, you might also owe wealth tax.
- Regional differences: Spain’s autonomous communities may have varying tax rates, so your specific obligations can differ depending on where you live.
- Crypto abroad: From 2023 onwards, if you hold over €50,000 worth of crypto outside Spain, you must report it using the Model 721 form.
Cryptocurrency taxation in Spain is straightforward but varies depending on the type of transaction and the taxpayer’s personal circumstances.
Key Crypto Scenarios for Spain’s Tax Rules
Here are some common taxable scenarios for cryptocurrency in Spain:
Selling Crypto for EUR (Capital Gains Tax):
When you sell crypto for euros or any other fiat currency, you’ll need to pay tax on any capital gains from the transaction.
Getting Paid in Crypto (General Income Tax):
Receiving payment in cryptocurrency is taxable. Whether you’re an employee or a contractor, the value of the crypto must be declared as income and is subject to general income tax.
Mining Crypto (General Income Tax):
Mining is classified as a business activity, and any income earned from mining is taxed under the general income tax rules. Additionally, disposing of mined rewards is treated as savings income.
Hodling Crypto (Wealth Tax):
If your total assets, including cryptocurrency, exceed the Wealth Tax threshold in your region, you are liable to pay wealth tax based on the total value of your assets.
Gifting Crypto (Inheritance and Gift Tax):
Gifting cryptocurrency is treated as a disposal and is subject to inheritance or gift tax, with rates varying by autonomous region.
How Crypto is Taxed in Spain?
Spain’s tax authority, Agencia Estatal de Administración Tributaria (AEAT), has issued updated guidance on the taxation of cryptocurrencies. In Spain, crypto transactions may fall under three primary tax categories:
- Impuesto sobre la Renta de las Personas Físicas (IRPF): Covers subcategories such as savings income, investment income, and business activities.
- Wealth Tax
- Inheritance and Donations Tax
Here’s a breakdown of each tax type and how it applies to crypto:
Savings Income from Crypto
Any capital gains from the sale or exchange of crypto are classified as savings income. You generate a capital gain whenever your crypto is disposed of, which includes:
- Selling crypto for EUR
- Trading crypto for another cryptocurrency
The tax on savings income is applied progressively, with rates ranging from 19% to 28%, depending on the total net profit and financial year.
Savings Income Tax Rate (Base Imponible del Ahorro)
The progressive tax rates for savings income are:
- 19%: Profits up to €6,000
- 21%: Profits between €6,000 and €50,000
- 23%: Profits between €50,000 and €200,000
- 27%: Profits between €200,000 and €300,000
- 28%: Profits over €300,000
It’s important to note that the tax rate is applied incrementally, meaning different portions of your profit are taxed at different rates. For instance, if you made a €60,000 profit, you’d pay 19% on the first €6,000, 21% on the next €44,000, and 23% on the remainder.
Wealth Tax on Crypto in Spain
In most regions of Spain, a Wealth Tax applies to the total value of your assets, including cryptocurrencies. The Wealth Tax thresholds and rates vary by region, but the minimum exemption typically starts around €700,000. Tax rates range from 0.2% to over 3%, depending on the region.
Here are the regional Wealth Tax rates:
- Cataluña: 0.21% to 3.48%
- Asturias: 0.22% to 3%
- Región of Murcia: 0.24% to 3%
- Andalucía: 0.20% to 2.5%
- Cantabria: 0.24% to 3.03%
- Comunidad Valenciana: 0.25% to 3.5%
- Baleares: 0.28% to 3.45%
- Extremadura: 0.30% to 3.75%
- Madrid: No Wealth Tax, but you must submit a Wealth Tax Return for informational purposes if your total assets exceed €2 million.
If your assets exceed the exemption limit, you will need to file a Wealth Tax declaration. The value of your cryptocurrencies must be calculated in euros based on their market value as of December 31 of the relevant tax year.
Inheritance and Donations Tax on Crypto
When you inherit or receive cryptocurrency as a gift, it must be declared in the Inheritance and Donations Tax (ISD) return. The tax rate you will pay on inherited or gifted crypto depends on the value of the assets and the region where you live. Each Autonomous Community sets its own tax rates, typically ranging from 7% to 36.5%.
How to Calculate Your Crypto Capital Gains
There are a few steps to calculate crypto capital gains. Here they are:
Step 1: Determine Your Cost Basis
Your cost basis is the amount you initially paid to acquire the crypto, including any fees or associated costs. If you received the crypto through other means (like a gift or airdrop), use the fair market value on the day you obtained it.
Step 2: Calculate the Gain or Loss
Subtract your cost basis from the sale price or the fair market value on the disposal date (for trades, gifts, etc.). If the result is positive, you have a capital gain. If it’s negative, you have a capital loss.
Step 3: Reporting Capital Gains:
- Capital Gain: Include the total gain in your annual personal income tax return.
- Capital Loss: You can offset losses against similar types of capital gains. If your losses exceed your gains, you can carry forward the unused losses for up to four years to offset future gains. Additionally, after this period, up to 25% of other income from savings (like dividends or interest) can be offset by these losses.
Important Update on Capital Losses and Wash Sales
Previously, Spain had a rule regarding capital losses and wash sales that applied to crypto, similar to the rules for stocks. It prevented capital losses from being claimed if the taxpayer had purchased identical assets within two months before or after selling. However, this rule no longer applies to crypto assets in Spain. Starting with the 2022 tax return, the Agencia Tributaria removed this requirement for crypto, simplifying the reporting process for capital losses from cryptocurrency transactions.
Tax-Free Crypto Transactions
Certain crypto transactions in Spain are exempt from taxation. These include:
- Buying cryptocurrency
- Holding cryptocurrency (unless subject to Wealth Tax)
- Transferring crypto between your own wallets
How to Report Crypto Taxes in Spain
The AEAT (Agencia Tributaria) requires Spanish tax residents to report their crypto-related income and capital gains in their annual Income Tax Return.
Filing Crypto Taxes in Spain
To report your crypto taxes, you’ll need to complete Form 100 (Modelo 100) as part of your income tax declaration. You or your accountant can use tools or apps to calculate the tax owed. The simplest way to file is through the AEAT’s Renta Online system.
Depending on your crypto transactions, different sections of your tax return will apply:
- Income from economic activities (e.g., mining rewards):
- Go to D1: Rendimientos de actividades económicas, then select Actividades económicas en estimación directa.
- In Box 0166, select BO6, and report your income in Box 0178: Otros ingresos.
- Investment income (e.g., staking rewards):
- Go to B: Rendimientos del capital mobiliario, then to Rendimientos del capital mobiliario a integrar en la base imponible del ahorro.
- Enter your total capital income in Box 0031: Rendimientos íntegros.
- Savings income (e.g., selling or trading crypto):
- Go to F2: Ganancias y pérdidas patrimoniales, then to Monedas virtuales.
- Use Box 1804 to report details of each crypto disposal throughout the financial year. If you have many transactions, consult with the tax office to possibly submit an attachment with your total gains and losses rather than listing each individual transaction.
Make sure all your crypto income and capital gains are accurately declared to comply with Spain’s tax regulations.
Spain Tax Deadline
In Spain, the tax year is the same as the calendar year, running from January 1 to December 31. You can start filing your income tax returns in early April, and they must be submitted by June 30 for the previous year. For example, you need to file your tax return for the 2024 tax year by June 30, 2025.
Important Tax Dates for Crypto in Spain
Model 720 Declaration:
This form is used to report assets you hold abroad, ensuring you pay the correct Wealth Tax. You must file this if you have foreign assets worth more than €50,000, like properties or bank accounts. Although it was initially thought that this form applied to cryptocurrencies, the Spanish tax authority has clarified that it does not. However, if you have other financial assets abroad valued over €50,000, you still need to submit this form.
Model 721 Declaration:
This form was introduced to help prevent tax fraud and specifically applies to cryptocurrencies held outside Spain. If your cryptocurrency portfolio is worth €50,000 or more, you must file Model 721 between January 1 and March 31. This requirement starts with the 2023 tax year, meaning your first submission would be due in 2024.
To value your cryptocurrencies, you need to check the average price as of December 31 for each year. If your portfolio was worth more than €50,000 at any time during the year but dropped below that amount by December 31, you must provide details on when it lost that value.
If you fail to submit Model 721 on time, you will face a penalty of €200. If you submit it incorrectly, the penalty is €150.
Should I Keep Track of My Crypto Transactions?
Yes, the AEAT (Spanish tax authority) requires you to maintain detailed records of your cryptocurrency transactions for 5 years. This timeframe starts from either when you prepared or obtained the records or when you completed the transactions, whichever is later. You should keep the following information:
- The date of each crypto transaction
- The value of the cryptocurrency in Euros at the time of the transaction (this can be sourced from a reliable online exchange)
- Details about the transaction, including what it was for and the identity of the other party involved (even if it’s just a wallet address)
Conclusion
Navigating crypto taxes in Spain is essential for investors and traders. While crypto trading is allowed in Spain, it comes with specific tax obligations, including capital gains tax that varies by income level. Stay informed, utilize tax tools, and consult with professionals to ensure compliance and optimize your tax liabilities.