Crypto Taxation in Spain: A Complete Guide

In Spain, more people are joining blockchain activities as they participate in cryptocurrency trading and mining along with other blockchain related operations. Although Spain takes a crypto-friendly approach, it has also implemented a sound tax framework to govern digital assets. Cryptocurrency traders and investors should be aware of how it is taxed; otherwise, they could be penalized for not being compliant. Agencia Tributaria (AEAT) is the country’s main tax authority that imposes crypto tax laws, guarantees transparency, and complies with global standards like the EU’s DAC8 directive.

Tax Authorities & Regulations

In Spain, the regulating and enforcing body for cryptocurrency taxation is the national tax authority Agencia Tributaria (AEAT). While Spain’s Personal Income Tax Act (IRPF) covers crypto, Royal Decree 249/2023 extends the act to any foreign crypto holdings.

Cryptocurrencies in Spain are referred to as digital assets, similar to stocks and not traditional currency. In that case, crypto is primarily considered property for tax purposes. The First In, First Out (FIFO) method is usually applied for capital gains calculations. In addition to that, Spain follows the EU transparency initiatives, including DAC8, to monitor and report cross-border crypto holdings.

Types of Crypto Taxes in Spain

• The Capital Gains Tax (CGT) is applied when cryptocurrencies are sold for fiat or used for payments.
• Income Tax – on Income received from mining operation, staking, airdrops, or salary in crypto.
• The EU guidelines state that Crypto is exempt from VAT when used as payment method.
• Other – Unitary tax must be declared if you have a net worth exceeding €700,000, while inheritance or gift taxes apply if you receive crypto, depending on the relationship and region.

Tax Rates & Brackets

Capital Gains Tax

• 19% for profits up to €6,000
• 21% for €6,001 – €50,000
• 23% for €50,001 – €200,000
• 27% for €200,001 – €300,000
• 28% for gains above €300,000

Income Tax:

• 19% (up to €12,450)
• 24% (€12,451–€20,200)
• 30% (€20,201–€35,200)
• 37% (€35,201–€60,000)
• 45% (€60,001–€300,000)
• 47% (above €300,000)

Wealth Tax:

• Varies across regions (e.g., Catalonia between 0.21% and 3.48%; Madrid offers exemptions but only if assets are below €2 million and must be reported if assets are above €2 million)

Exemptions:

• If one receives an income below €1,000, it is possible for that person not to file, but if their foreign holdings exceed €50,000, it still must be declared.

Crypto Transactions & Tax Treatment

• Cryptocurrency Buying and Selling: There is no tax when purchasing crypto with fiat. Upon selling it or using it for payments, capital gains tax is applied based on profit.
• Crypto Mining and Staking: Incomes of mining are considered as professional incomes (up to 47%) and need autónomo registration. Investment income relating to staking rewards (basically) is taxed at CGT rates (19%–28%).
• Payment of Crypto as Salary or Payment: It will be considered as earned income and taxed as such at the standard income rate.
• Crypto-to-crypto trades are generally not taxable, assuming no fiat is involved.
• Lending, Yield Farming: Similar to staking or income, there is still no official clarity.
• Transactions of NFTs: Sales of NFTs are treated as other digital assets and hence taxed under capital gains rules when they are sold with fiat.

Crypto Tax Reporting & Compliance

If you are a taxpayer in Spain and engaged in crypto, you have to file an annual income tax return on Form 100 (Modelo 100) by June 30. If you hold foreign cryptocurrency worth more than €50,000 as of January 1, you must report this asset between January 1 and March 31 using Form 721 (Modelo 721). Also, the individual over €700,000 net worth must file Form 714 (Modelo 714) for wealth tax.

Taxpayers must keep detailed records of any transaction with associated dates, amounts, wallet addresses and counterparties for at least five years and the EUR value at the time of each transaction. Failure to comply can lead to big fines or even criminal charges, depending on whether the amounts of undeclared money add up to more than €120,000.

Tax Deductions & Exemptions

Supposing you are already registered as autónomo, crypto miners can deduct these costs as business-related: electricity, equipment depreciation and internet cost. Holding crypto trading losses gives one the ability to offset capital gains and can be carried forward for up to four years. 

It is, however, not just the incomes of less than €1,000 that can be exempt from filing a tax return; crypto holdings above certain thresholds (for example, foreign wallets higher than €50,000) need to be declared as well. Transfers from one wallet to another and holding crypto do not generate taxes, unless in conjunction with wealth or foreign asset reporting, for example, to comply with FATCA requirements.

Enforcement & Penalties for Non-Compliance

There are many ways for the Agencia Tributaria to ensure crypto tax compliance. International crypto exchange platforms, including Binance and Coinbase, which are also active in Spain, need to comply with the country’s anti-fraud regulations as well as the EU’s directive DAC8, which came into effect in 2024. Further, KYC (Know Your Customer) data is used to trace wallets and watch undeclared transactions on public ledgers.

Severe penalties apply for noncompliance. Fines can go up to 150% of undeclared taxes, and misuse in excess of €120,000 can lead to criminal charges and one or two years in prison. An improvement in Spain’s anti-fraud laws, such as the implementation of Form 721, has made it easier for the government to detect those individuals evading taxes in the crypto sector as well as penalize them. There is also increasing usage of regular audits and investigations, and therefore, accurate and timely reporting is required.

Future of Crypto Taxation in Spain

This will probably add more clarity and uniformity to crypto tax rules for the European Union, which is going to implement Markets in Crypto-Assets (MiCA) regulation by the end of 2025. In line with these standards, Spain is expected to bring clear guidance on frontiers such as DeFi, NFTs and DAOs. The positive environment for crypto innovation in Spain is anticipated to become tighter, with greater enforcement and increased transparency requirements. Investors are advised to be up to date with regulatory changes, as well as advise their professionals on how to effectively catch up.

Conclusion

Spain has established a complete crypto tax system that addresses capital gains, income, and wealth. Capital gains are taxed between 19 and 28%, and income up to 47%—so being compliant is essential, as failure to do so can lead to fines and legal troubles. There is also an annual Form 100 reporting requirement and, in certain instances, Form 721 and Form 714. Records are to be maintained for 5 years. Tools like Blockpit and Koinly can make compliance a lot simpler, but because crypto regulations are so complex, it is recommended to seek professional tax advice. The best course of action in the ever-dynamic crypto landscape of Spain is to be informed and proactive.

Frequently Asked Questions (FAQs)

1. Is cryptocurrency legal in Spain?

 Crypto trading, mining, and transactions are legal but are fully taxable.

2. What is the Spanish crypto capital gains tax rate?

 Depending on the amount of gain, the rates vary from 19 to 28%.

3. Are crypto-to-crypto trades taxable?

 Generally not, unless Fiat is included in the trade.

4. How are mining rewards taxed?

 Subject to a 47% tax rate as ‘professional income’ and requires autónomo registration.

5. What documentation does a taxpayer need to report crypto tax in Spain?

The taxpayers application of Form 100 (income tax), Form 721 (foreign holdings), and Form 714 (wealth tax if applicable) are needed to report the crypto tax in Spain.