In Spain, for calculating capital gains, the FIFO (first in, first out) method is used.
This means that the asset sold will be the first one acquired in chronological order.
Now, let’s look at a practical example of how the FIFO method works:
User A purchases 0.5 ETH on February 1st at a price of €1,000 (ETH price €2,000).
User A purchases 1 ETH on April 7th at a price of €1,600 (ETH price €1,600).
User A sells 1 ETH on June 3rd at a price of €1,800 (ETH price €1,800).
The calculation of gains/losses is as follows:
[(0,5 * 2.000) + (0,5 * 1.600)] - (1 * 1.800) = 0
Losses generated from cryptocurrencies can only be offset with gains coming from cryptocurrencies as well.
Unused losses can be carried forward for up to a maximum of 4 years.
If, at the end of this period, they remain unused, they can be used to offset gains generated from other income sources such as dividends or bonds up to 25% of this source of income.