Are you a Spain resident and wish to understand the rules governing crypto taxation and how they affect you? Then you’ve come to the right spot. Because this tax guide will address questions like how crypto transactions are taxed in Spain, How much taxes should you pay on your crypto transactions? and How to report your taxes to the Agencia Tributaria? 

For individuals involved in trading or investing in crypto assets, it is crucial to familiarise themselves with the guidelines and regulations governing the taxation of these transactions. Staying informed about the tax rules will help you avoid potential legal and tax implications when filing your tax report. As the landscape of crypto taxation continues to evolve worldwide, it is essential to understand that Spain is also implementing its own regulations in this regard. By staying up-to-date with the latest developments, you can ensure compliance with the tax requirements in Spain related to crypto assets.

This guide is comprehensive and will be updated regularly as the tax authorities keep updating the guidelines. So make sure you go through the entire guide thoroughly to avoid missing out on the pivotal aspects of crypto taxation.

So let’s get started…

Latest Updates/Guidelines

27/06/23- Updated to accommodate ICO, Gifts and Donation Taxes

27/06/23- Updated to accommodate 

How are crypto transactions taxed in Spain?

Agencia Tributaria, the Spanish tax authority defines Bitcoin and other crypto assets as:

“a digital representation of value that is neither issued nor guaranteed by a central bank or public authority, is not necessarily associated with a legally established currency and does not have the legal status of currency or money, but is accepted as a medium of exchange and can be transferred, stored or traded electronically.”

According to the latest guidelines from Agencia Tributaria, capital gains or losses from the sale of cryptocurrencies are treated as savings income for tax purposes. The taxation rules remain the same, whether you received fiat currency or another cryptocurrency after disposal.

The categorisation of crypto assets as property makes them liable for four kinds of taxes in Spain:

1. Income Tax
2. Wealth tax
3. Savings Income Tax
4. Inheritance and Donation Tax

Let’s dissect them one at a time.

Savings Income Tax(CGT)

Since crypto is considered a property and not a currency by tax authorities in Spain, the disposal of crypto assets attracts a capital gains tax, also known as the Savings Income tax. The following transactions are considered to be a disposal of crypto assets by the Agencia Tributaria:

1. Selling crypto for Fiat
2. Trading crypto for another cryptocurrency
3. Gifting crypto to other people

Depending on the size of gains you’ve made, you will be taxed according to the following rates:

Since Spain has a progressive tax infrastructure, you don’t pay a flat rate on your capital gains. You only pay a higher tax rate on the extra income.

General Taxable Income

Any income that’s not a savings income is by default assumed to be general taxable income for Spanish citizens and attracts a progressive income tax. Any income made from the following transactions is considered General taxable income by Spanish tax authorities:

1. Any income not considered savings income 
2. Any capital gains incurred without disposing or transferring crypto assets

Just like savings income, progressive tax rates apply to general income, which contains both a state tax rate and a local tax rate approved by each autonomous community in Spain. As a result, the applicable tax rate may vary between autonomous communities.

The general income tax rates are as follows:

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Wealth Tax

Like Norway, Netherlands, and Italy, Spain also levies a wealth tax on its citizens at the end of the tax year. It applies to individuals who are Spain's residents and those who own assets in the country, regardless of their place of residence. The tax rate ranges from 0.2% to 2.5% based on the individual net worth. It is primarily governed by the state, however, autonomous communities can establish independent guidelines for wealth taxation.

To calculate the wealth tax you owe to tax authorities, you need to calculate your taxable base first. Your taxable base is the total worth of your assets after all permissible deductions.

Here’s a list of permissible deductions while calculating wealth tax:

• Every Autonomous Community can set its minimum amount exempt from taxation. You can get more details from the website of the autonomous community.
• If an autonomous community fails to set its tax exemption threshold, a default exemption of €700,000 will be in effect.
• Your primary residence, be it a house or apartment, is eligible for a tax exemption of up to €300,000.
• Family company stakes and business assets may be exempt, provided certain criteria are fulfilled.

Given below are tax rates for autonomous communities in Spain:

• Catalonia: between 0.21% and 2.75% tax.
• Asturias: between 0.22% and 3% tax.
• Region of Murcia: between 0.25% and 3.5% tax.
• Andalusia: between 0.20% and 2.5% tax.
• Cantabria: between 0.24% and 3.03% tax
• Community of Valencia: between 0.25% and 3.5% tax
• Balearics: between 0.28% and 3.45% tax
• Extremadura: between 0.3% and 3.75% tax

Inheritance and Donation Tax

Spain has a gift and inheritance tax, also known as Impuesto Sobre Donaciones y Sucesiones, a tax imposed on transfers of wealth as gifts and inheritances. The tax rate depends on the value of the asset being transferred, the relationship between the giver and the recipient, and the autonomous community in which the recipient resides. 

Exemptions and reductions are available for transfers between close relatives, such as spouses and children. The Spanish government sets the general framework for the gift and inheritance tax, but each autonomous community can establish its tax rates and exemptions.

Can the Agencia Tributaria track crypto?

Yes, it can. The Agencia Tributaria has access to information from cryptocurrency exchanges, wallets, and other platforms to identify taxable transactions. This information can be used to verify if taxpayers have reported all of their taxable crypto transactions and to identify any discrepancies or underreporting. As a result, it is important for taxpayers to accurately report all of their cryptocurrency transactions to avoid any penalties or fines.

Crypto Gains Tax

Acquiring crypto is not a taxable event in Spain. However, since crypto is considered a type of property by the Spanish tax authorities, the disposal of crypto assets is considered a capital gain and attracts tax liabilities. 

In general, capital gains made by individuals are taxed at a rate in the range of 19% or 23% depending on the gain, while gains made by companies are taxed at a rate of 25%. However, certain exemptions and reductions may apply.

Consider the following transactions:

13/01/22 - Antonio bought 3 BTC 

11/02/22 - Antonio bought 4 ETH

18/04/22 - Antonio received 6.25 BTC as mining rewards (Total Value Є1,25,000)

23/05/22 - Antonio sold 1 BTC (Capital Gain = Є10,000)

21/06/22 - Antonio sold 1 ETH (Capital Gain = Є2,000)

01/08/22 - Antonio received 2 BTC as a gift (Perceived Value of the Gift Є50,000)

As evident from the above ledger of transactions, two disposals were made.

Since cryptocurrencies are treated as property in Spain, their disposal attracts a savings income tax.

So collective gain from both disposals = Є12,000

Since the total gain lies between Є6,000 and Є50,000, a 21% CGT will be levied on the gain. So Antonio owes Є2,520 in CGT to the tax authorities.

Now, Antonio received 6.25 BTC as mining rewards. Mining rewards are perceived as general taxable income in Spain, so the total value of the rewards (Є1,25,000) will attract a GIT (General Income Tax) based on the tax bracket it falls in.

As for the 2 BTC received by Antonio with a total perceived value of Є50,000, an inheritance and Donations Tax will be levied on the value.

Capital Gains Tax Rate

Capital gains are considered as savings income and are subject to a savings capital gains tax rate that varies from 19-23% based on your income:

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How to Calculate Crypto Gains and Losses

You can calculate your crypto gains or losses easily. The first step would be to find the cost basis for your assets which is the price you paid to acquire the crypto asset, including any gas fees or transaction fees paid in addition to the asset’s market value. Once you have that figured out, you can move on to the next step.

Your capital gain or loss is simply the difference between your cost basis and the value of your asset at the time of disposal. If the difference is positive, it’s considered a capital gain and if it’s negative, it is a capital loss. 

Consider the following transactions:

13/01/22 - Pablo buys 1 BTC for Є20,000

19/01/22 - Pablo buys 2 ETH for Є2,100 each

21/02/22 - Pablo buys 1 BTC for Є22,000

19/04/22 - Pablo sells 1 BTC for Є25,000

24/06/22 - Pablo sells 2 ETH for Є2,500 each

As evident from the above transactions, Pablo made 2 disposals, let’s calculate the gains/losses incurred by Pablo from these disposals one at a time.

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1st Disposal

1 BTC sold for Є25,000

Now since BTC tokens were acquired at two separate instances for different prices, we need to use a specialised accounting method to calculate the cost basis for this transaction. The Spanish authorities recommend using the FIFO or the First-In-First-Out accounting method for cost-basis calculations, stating that the first asset you buy is the first one you sell. 

Accounting methods have been discussed in detail later in the guide.

So the cost basis for this transaction comes out to be Є20,000 because this is what Pablo paid to acquire the first BTC.

Cost Basis = Є20,000

Disposal Amount = Є25,000

Capital Gain = Є25,000 - Є20,000 = Є5,000

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2nd Disposal 

2 ETH sold for Є2,500 each

This is a pretty straightforward disposal since ETH tokens were acquired in only one instance.

Cost Basis = Є2,100

Disposal Amount = Є2,500

Capital Gain = Є2,500 - Є2,100 = Є400 (For 1 ETH)

Total Gain from both ETH = 2 * Є400 = Є800

Collective gain from both disposals = Є5,800

Crypto Losses

When you trade or invest in speculative capital markets, losses are inevitable. However, losses aren’t always bad. You can use your capital losses from crypto assets to reduce your tax bill by offsetting them against your gains. You can write off all your losses as long as you’ve made these losses in the same tax year as the gains. 

If you carry your losses to a subsequent tax year, you can only use 25% of the net loss to reduce your tax bill. To write off capital losses in Spain, you will need to provide evidence of the sale of the asset, such as a brokerage statement or other documentation and meet any other requirements established by the Spanish tax authorities.

Lost or Stolen Crypto

In Spain, there's a chance you can deduct a lost or stolen cryptocurrency as a tax loss, but it depends on various elements, including the country's tax laws and the situation surrounding the loss. To claim a tax loss on lost or stolen cryptocurrency, you must have evidence of the loss, such as a report from the police or exchange where the cryptocurrency was held. 

Furthermore, the tax laws in Spain may have specific regulations for reporting and claiming losses involving cryptocurrencies, so it would be wise to seek advice from a tax expert. You should remember that declaring a tax loss for lost or stolen crypto can be a complicated process and may not always be possible.

Crypto Cost Basis Method Spain

In Spain, the FIFO (first in, first out) method is employed when calculating your taxable income. This means that the first asset you buy is considered the first asset you sell, and the crypto taxes are calculated based on this original cost.

If you need more clarity on using the FIFO accounting method to calculate your crypto taxes you can refer to this article here.

Consider the following transactions:

13/01/22 - Carlos bought 1 BTC for Є21,000

15/02/22 - Carlos bought 1 BTC for Є23,000

17/06/22 - Carlos sold 1 BTC for Є25,000

As evident from the above ledger, Carlos acquired BTC tokens at two separate instances for different prices, now since we’re using the FIFO accounting method, the cost basis for this disposal would be Є21,000

Cost Basis = Є21,000

Disposal Amount = Є25,000

Capital Gains = Є25,000 - Є21,000 = Є4,000

Crypto Income Tax Spain

For Spanish citizens, any income that does not fall under the category of savings income is automatically treated as general taxable income and is subject to progressive income tax. The Spanish tax authorities consider the following transactions as generating general taxable income:

1. Income that does not qualify as savings income.
2. Capital gains arise from the ownership or holding of crypto assets without their disposal or transfer.

Crypto Income Tax Rates

Just like savings income, progressive tax rates apply to general income as well, which contains both a state tax rate and a local tax rate approved by each autonomous community in Spain. As a result, the applicable tax rate may vary between autonomous communities.

The general income tax rates are as follows:

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How to Calculate Crypto Income 

Calculating your taxable income from crypto assets in Spain is a straightforward process. Start by summing up all your capital gains from the sale or disposal of your crypto assets. Next, offset any capital losses you have incurred against these gains. The resulting amount after offsetting the losses is your taxable income from crypto assets. It's important to note that only the net capital gains (gains minus losses) are subject to taxation. By accurately calculating your taxable income, you can fulfil your tax obligations and ensure compliance with the tax regulations in Spain.

Tax-Free Crypto Transactions

Not all crypto transactions attract tax liabilities. The following transactions are tax-free in Spain:

• If you give cryptocurrency to someone, it may be exempt from taxes until it meets the criteria established by Spanish tax law.

• If you use crypto assets for personal expenses, such as purchasing goods or services, then these transactions may not be subject to taxes.

• Transfers of cryptocurrency between your wallets or exchanges may not be subject to taxes in Spain.

Taxed Transactions

If you’ve been a part of any of the transactions listed below, you might owe some taxes to the Spanish tax authorities:

• If you trade one cryptocurrency for another or exchange it for fiat currency, you may be subject to taxes on any capital gains or profits from the transaction.

• If you sell cryptocurrency for a profit, the profit may be considered a capital gain and subject to taxes in Spain.

• If you use cryptocurrency for business operations, such as accepting it as payment for goods or services the transactions may be subject to taxes.

• If you earn cryptocurrency through mining, the rewards may be considered taxable income.

Tax on Mining Crypto Spain

The Agencia Tributaria is silent on the taxation of cryptocurrency earned through mining operations. However, as many other countries consider mining rewards equivalent to regular income, it is best to report it in your tax return, as you are effectively compensated for a service. This approach is likely the safest option.

We do suggest seeking help from an experienced tax professional to better understand how mining rewards are viewed from a tax perspective.

Tax on Staking Crypto

The Agencia Tributaria is yet to release specific guidelines on the taxation of staking rewards. But since most countries in the vicinity treat mining and staking rewards similarly from a tax perspective, any staking rewards will probably be taxed as general income.

However, we do suggest seeking advice from an experienced tax accountant to avoid legal trouble in the future.

Crypto Margin Trading, Futures and CFDs

In Spain, the tax treatment of margin trading, futures, and Contracts for Difference (CFDs) depends on the classification of the investor. If you’re a retail investor, any profits from these financial instruments are taxed as capital gains. And If you’re a professional trader, the profits are taxed as business income.

For retail investors, capital gains are taxed at 19% for gains up to €50,000 and 23% for gains over €50,000. In addition, Spain has a progressive tax system, so the more you earn, the higher the rate will be.

For professional traders, business income is taxed at the normal corporate tax rate of 25%. However, it may be possible to qualify for a reduced tax rate of 20% under certain conditions. Professional traders are also subject to VAT, which is currently set at 21%.

Crypto Gifts and Donation Taxes

When an individual inherits cryptocurrencies, it is important to include them in the ISD (Inheritance and Gift Tax) statement.

Similar to the Wealth Tax, the taxation of inherited or gifted cryptocurrencies depends on the amount received and the specific jurisdiction. Each Autonomous Community in Spain establishes its tax rate for inherited and gifted assets. However, as a general guideline, the taxable rate typically ranges from 7% to 36.5%. The specific rate applied will vary accordingly.

NFT Taxes Spain

In Spain, the taxation of Non-Fungible Tokens (NFTs) is determined based on the specific use and nature of the NFT. NFTs can be considered a means of payment, or a work of art, or a financial asset.

• If the NFT is used as a means of payment, it is subject to value-added tax (VAT) at the standard rate of 21%.

• If the NFT is considered a work of art, it is subject to inheritance and gift tax. This tax is levied at a rate of 7.65% for close relatives, such as children or grandchildren, and a rate of 19% for other beneficiaries.

• If the NFT is considered a financial asset, it is subject to capital gains tax.

ICO Taxes

ICOs are special events that allow investors to acquire tokens from unreleased projects in exchange for mainstream tokens like BTC and ETH. ICOs are similar to IPOs in traditional markets and are viewed as crypto-to-crypto trades for tax purposes across jurisdictions.

Therefore, it is highly probable that any crypto assets received through ICOs will be viewed as a crypto-to-crypto trade and will be subjected to capital gains tax or Savings Income Tax in Spain. We do suggest seeking the advice of experienced tax professionals to better understand how such transactions are taxed.

DAO Taxes

DAOs are member-owned communities with a shared vision. All the decisions in a DAO are made by the members in the absence of central leadership. DAOs are new-age institutions that aim to democratise decision-making and allow people to have a say in decisions that directly affect them. DAOs are often called the soul of Web3 and enable members to earn rewards in multiple ways. DAO contributors are rewarded for their contributions to the organization, similar to how centralized organizations pay salaries to their employees. They also pay out bounties for one-time projects and redistribute any profits generated through operations.

The Agencia Tributaria is yet to release any guidance on the taxation of income from DAOs, we suggest seeking the advice of an experienced tax professional to understand better how such transactions are viewed from a tax perspective.

DeFi Crypto Taxes Spain

Agencia Tributaria is yet to release clear guidelines around the taxation of DeFi transactions. Inferring from the existing guidelines and tax rules, we can say the following:

1. Any income made from DeFi transactions shall be subjected to income tax
2. Any income made from crypto-to-crypto swaps, trades, and liquidity farming shall be subjected to savings income tax.

Taxes on buying and selling crypto in Spain

Whether or not buying crypto is taxable depends on the nature of your transaction. If you’re using fiat currency to buy crypto assets, the event is non-taxable. However, if you buy a crypto asset and pay for it using another crypto asset, the event is considered a disposal of a capital asset. It attracts a Savings Income Tax ranging from 19-26% depending on the size of your income.

Selling cryptocurrency, regardless of the type of currency you receive is deemed a taxable event. So, when you swap a cryptocurrency for euros, stablecoins, or any other crypto asset, it's necessary to calculate the capital gains from the cryptocurrency sold.

How are Airdrops and Forks taxed in Spain?

The Spanish Tax Agency has not issued any official guidance on the taxation of cryptocurrency airdrops and forks. However, as a precautionary measure, it is advisable to consider crypto received from airdrops and forks as taxable income under personal income tax.

How to report crypto taxes in Spain?

You can use the form Modelo 100 to declare all your income to the tax agency in Spain, and since capital gains are considered a part of your income, you can report all your capital gains and losses through this form.

There’s been a bit of confusion regarding the declaration of foreign assets worth more than €50.000 using the Modelo 720 declaration form but the recent notifications from the Agencia Tributaria clarify that crypto assets are not included in the list of financial assets that must be reported using this form.

How to file your crypto taxes in Spain?

Once you’ve successfully calculated your cost basis and the collective taxable income across all your transactions, you need to fill up the form called Modelo 100 and submit it to the Agencia Tributaria.

You can do this physically or through their online portal called Renta Online which allows you to fill, edit, and submit your tax forms from the comfort of your home.

What crypto records will the Agencia Tributaria want?

The Spanish Tax Agency, AEAT, mandates that thorough documentation of cryptocurrency transactions be retained for 5 years. This requirement applies from the later of either the date when the records were prepared or obtained or the completion of the transactions they relate to. The following information should be included in these records:

• The date of each cryptocurrency transaction
• The value of the cryptocurrency in Euros at the time of the transaction, which can be obtained from a reputable online exchange
• The purpose of the transaction and the identity of the other party involved, even if it is just a wallet address.

FAQs

1. What is the deadline to file taxes in Spain?

In Spain, the tax year follows the standard calendar year, starting on January 1st and ending on December 31st. To keep up with tax obligations, Spanish income tax returns for the previous year must be submitted by June 30th. This means, for the 2022 tax year, the deadline for submitting your tax return is June 30th, 2023.

2. Who can help you calculate your crypto tax in Spain?

Although you can calculate your crypto taxes on your own, or have a tax accountant do it for you, there’s a high chance that you might miss reporting on your tax report and that may lead to some legal complications. It is advisable to use an online tax calculator like Kryptokatt that can auto-fetch all your transactions from your digital wallets and investment profiles and generates a legally compliant tax report for you within minutes saving you thousands in consulting fees.

3. How is Crypto Staking Taxed in Spain?

Spain doesn’t have clear guidelines on the taxation of cryptocurrency staking rewards. However, because staking rewards are similar to mining rewards, it's advisable to treat staking rewards as general income and report it on your tax return, just like you would with mining rewards. This is the most correct and prudent approach.

4. Is crypto taxable in Spain?

Yes, cryptocurrency is taxable in Spain. According to Spanish tax law, any capital gains obtained from the sale of cryptocurrency are considered taxable income and are subject to taxation. The tax rate varies based on the individual's tax bracket, and the applicable tax rate can range from 19% to 26%. It's essential to consult with a tax professional for specific questions about your tax situation.