Cryptocurrency taxation in Spain is governed by the Agencia Tributaria (Spanish tax agency) and falls under Personal Income Tax (PIT).
Gains from crypto transactions are generally considered savings income and are subject to varying tax rates depending on the type of transaction and individual taxpayer circumstances.
Overview
Capital Gains: Gains from selling, swapping, or spending crypto are considered savings income and are taxed at rates between 19% and 26%.
Mining Rewards: Considered a freelance business activity and taxed under Income Tax.
Staking Rewards: Viewed as investment income and taxed at rates between 19% and 26%.
Wealth Tax: Crypto may be subject to Wealth Tax depending on your region and the value of your crypto portfolio.
Reporting Requirements: From 2023 onward, Spanish taxpayers must report crypto holdings over €50,000 held abroad using Model 721.
Savings Income from Crypto
Capital Gains: Capital gains occur when you sell crypto for EUR or trade crypto for another cryptocurrency.
Tax rates on savings income range from 19% to 28% based on the amount of net profit:
19% on profits up to €6,000
21% on profits between €6,000 and €50,000
23% on profits between €50,000 and €200,000
27% on profits between €200,000 and €300,000
28% on profits over €300,000
This tax rate is progressive. That means that you won't pay the same tax rate on the entire amount.
For example, if you had a €60,000 net capital gain, you wouldn't pay 23% on all of it.
Instead, you'd pay 19% for the first €6,000, 21% for the next €44,000, and 23% on the remaining net profit.
Calculation of Capital Gain and Loss
Cost Basis: The cost basis is the purchase price of your crypto, including transaction fees.
Sale Proceeds: Sale proceeds are determined by the fair market value of the crypto at the time of disposal.
Crypto-to-Crypto Trades: For trades between cryptocurrencies, sale proceeds are determined by the higher FIAT market value of the outgoing or incoming asset at the moment of trading.
Cash-Out Method: Crypto tax is calculated using the FIFO (first in, first out) method.
Capital Loss Management
Spanish taxpayers can apply losses to offset gains of a similar type. For instance, if you have crypto gains, you can use crypto losses to reduce these gains.
In cases where there are no gains to offset the losses against, or the losses exceed the gains, you can carry these losses forward to future tax years.
Unused losses may be carried forward for up to four years to offset other capital gains. If any losses remain unused after this period, you may also offset them against other income sources such as dividends, interest, and bonds, up to 25% of this income.
Special Crypto Scenarios
Staking: Rewards are considered investment income and must be included in cell 0033 in the Income Tax Return.
Mining: Treated as a business activity requiring registration as a freelancer under business activity code 832.9.
Airdrops: Viewed as gifts and should be reported in cell 0304 of the Income Tax Return.
Wealth Tax
Wealth tax may apply depending on the region and value of crypto assets.
Inheritance and Donations Tax
Crypto received as an inheritance or gift must be included in the ISD statement.
Gifting Crypto
It's seen as a kind of disposal and you'll need to pay Inheritance and Gift Tax.
The exact amount you'll pay varies depending on the autonomous region that you live in.
Spanish Financial Year
The financial year runs from January 1 to December 31.
Income tax returns for the previous year must be filed by June 30 of the following year.
Model 721 Declaration
Individuals holding crypto portfolios valued at €50,000 or more must submit Model 721 between January 1 and March 31 of the following year.
Penalties apply for late (€200) or incorrect submission (€150).
How to Report Crypto in Spain
Spanish tax residents must complete Form 100 (Modelo 100) for Spanish income tax declarations.
Filing taxes can be done via the AEAT's Renta Online.