Taxation of cryptocurrencies in Spain

How will cryptocurrencies be taxed in Spain in 2025?

1.- The taxation of cryptocurrencies in Spain depends on the type of operation carried out

Spain has updated its regulatory framework and if you receive crypto as a gain, inheritance or donation, you are obliged to declare it to the AEAT. In addition, some regions impose a wealth tax if the total value of all your assets exceeds a threshold.

The process is simpler than it seems, but it requires following certain steps to avoid making mistakes or omissions.

PROPRIMONIAL GAINS AND LOSSES (IRPF)

Most transactions with cryptocurrencies that generate a gain or loss are considered capital gains or losses and the taxable savings base for Personal Income Tax (IRPF). This includes:

Sale of cryptocurrencies for euros or other fiat currencies:

Capital gain or loss
Amount: difference between transfer value and acquisition value
Chargeable to the year in which the currency is delivered under the purchase and sale contract
Savings income because it derives from the transfer of an asset.

Exchanges between different cryptocurrencies

The exchange between different virtual currencies gives rise to a capital gain or loss
The change in assets is valued in accordance with the specific rules for exchanges.
The market value of the virtual currencies that are exchanged is that which would correspond to the price agreed for their sale between independent parties
Gains or losses are savings income.

Using cryptocurrencies to purchase goods or services (this is considered an exchange).

A barter is an exchange of goods or services
When you use cryptocurrencies to buy something, you are exchanging your cryptocurrencies for the good or service you are buying
This transaction generates capital gains or losses, which you must include in your tax return
Gains and losses are considered as savings income and are included in your taxable income.

The gain or loss is calculated as the difference between the transfer value (sale/exchange price) and the acquisition value (purchase/obtaining price), minus the expenses inherent to the transaction (exchange commissions, etc.).

The tax rates applicable to the savings tax base in 2024 are:

Up to 6,000 euros: 19%
Between 6,000.01 and 50,000 euros: 21%
Between 50,000.01 and 200,000 euros: 23%
Between 200,000.01 and 300,000 euros: 27%
Over 300,000.01 euros: 28%

INCOME FROM MOBILIARY CAPITAL (IRPF)

Some activities with cryptocurrencies can generate income from movable capital, such as:

Staking: The rewards obtained by blocking cryptocurrencies to validate transactions are usually taxed as income from movable capital.
Lending (Lending of cryptocurrencies): Interest received for lending cryptocurrencies to third parties is also considered as income from movable capital.

This income is included in the savings tax base and is taxed at the same rates as capital gains.

Airdrops and bonuses or rewards received for referrals, are considered earnings and are taxed as income from movable capital or as capital gains, depending on their nature.

INCOME FROM ECONOMIC ACTIVITIES (IRPF)

If the activity with cryptocurrencies is carried out on a regular and professional basis (e.g. high-frequency trading, mining as the main activity, services related to cryptocurrencies), the profits obtained are considered income from economic activities and are taxed in the general IRPF tax base, with progressive rates that may be higher.

WEALTH TAX (IP)

If the total value of the cryptocurrencies owned by a taxpayer exceeds the threshold established by the autonomous community (generally 700,000 euros, although this may vary), they will be subject to Wealth Tax.

FORM 721

Information obligation for holding cryptocurrencies

Outside the field of income tax, it is also mandatory to declare balances in cryptocurrencies, so if on 31 December you had more than €50,000 in cryptocurrencies in a foreign exchange, you will also be obliged to file form 721 (until 31 March). Don’t worry, it is an informative form for the tax authorities and you will not have to pay tax for filing it, as it is an informative form.

2.- How does the Inland Revenue obtain the data?

The Tax Agency (Hacienda) uses several ways to obtain information on cryptocurrency transactions:

Exchange Platforms Reporting Obligation: Since 2023, cryptocurrency exchange platforms and virtual wallet custody service providers established in Spain are obliged to file form 173. This form provides information on transactions carried out by their clients resident in Spain, including balances, movements, purchases, sales, swaps and returns.
International Information Exchange: The Treasury participates in international tax information exchange agreements, such as the European Union’s DAC8 Directive, which extends the reporting obligation to cryptoasset service providers, regardless of their location. This will make it easier to obtain data on transactions carried out on foreign platforms by Spanish residents.
Specific Information Requests: The Treasury may issue specific information requests to foreign exchange platforms or to taxpayers themselves if it detects indications of undeclared transactions.
Data Analysis and Algorithms: The Treasury uses data analysis tools and algorithms to cross-check information from different sources and detect possible inconsistencies or indications of tax fraud related to cryptocurrencies.
Collaboration with other administrations: The Treasury can collaborate with other administrations and law enforcement agencies to investigate activities related to cryptocurrencies.

The tax authorities have multiple ways to track your cryptocurrency transactions, either through exchanges, your bank or through your own declarations. It doesn’t matter whether you have made or lost money, the most important thing is to declare all your transactions correctly to avoid tax problems.

3.- Who is obliged to declare cryptocurrencies?

The tax authorities require individuals and legal entities that hold virtual currencies and carry out transactions with them to declare cryptocurrencies and virtual currencies.

Those taxpayers who have obtained capital gains (from sale, exchange or use to acquire goods/services) or income from movable capital (from staking, lending, etc.) in excess of the limits established in the Personal Income Tax regulations are obliged to declare cryptocurrencies in the Personal Income Tax.

In general, if you have carried out any transaction that has generated a capital gain or loss, you are obliged to declare it, regardless of the amount (although losses can offset gains within certain limits and time limits).

With regard to Wealth Tax, taxpayers whose total wealth (including cryptocurrencies) exceeds the threshold established by their autonomous community are obliged to declare it.

4.- Understand the fiscal references and obligations in the Wealth Tax

CR1, CR2 and CR3 are fiscal references that are used to register operations carried out with cryptocurrency exchanges in Spain.

They are references that are used in the form 100 (personal income tax return) to identify different operations with cryptocurrencies.

For those who trade cryptocurrencies through exchanges located in Spain or hold Spanish bank accounts linked to cryptoasset services, it is crucial to know the tax references that may appear on their tax return, for example:

CR1 indicates that the taxpayer has carried out some type of transaction with an exchange using a Spanish bank account for fund movements, whether deposits or withdrawals.
CR2 indicates the existence of a balance in exchanges located in Spanish territory, even if there has not been much trading activity during the corresponding tax period.
CR3, on the other hand, identifies specific cryptocurrency sale or exchange transactions carried out in exchanges based in Spain. This data tends to appear especially when there are gains or losses derived from the movement of digital assets.

5.- How to include cryptocurrencies in the tax return?

To include cryptocurrencies in your tax return, you must complete the section on capital gains and losses derived from transfers.

Specific details must be provided on transactions made with cryptocurrencies during the relevant tax period. This includes information such as:

Key: Indicates the type of item transferred (e.g. ‘Cryptocurrency’)
Description: Specifies the cryptocurrency (Bitcoin, Ethereum, etc.)
Date of acquisition
Value of acquisition
Date of transmission
Value of transmission
Expenses inherent to the transmission

It is important to make sure to keep detailed and accurate records of all transactions involving cryptocurrencies, as lack of proper documentation can end up creating complications during the tax filing process.

Bearing in mind that each transaction, even if it is a swap of one currency for another, generates a gain or loss, which means that thousands of transactions can accumulate over the course of the year, even if the capital invested is not very large, and therefore thousands of gains or losses to control and group by currency when preparing the tax return.

The calculated capital gain or loss will be reflected automatically.

Important: It is essential to keep all the documentation that justifies the operations carried out with cryptocurrencies (exchange statements, purchase and sale receipts, commission invoices, etc.).

Cryptocurrency tax regulations can be complex and are constantly evolving. It is advisable to consult a specialised tax advisor to ensure proper compliance with tax obligations.

The integration of the information from Form 173 in the tax data that the Treasury makes available to taxpayers will facilitate the return, but it is the taxpayer’s responsibility to review and confirm that the information is correct and complete.

IN SUMMARY, the taxation of cryptocurrencies in Spain focuses mainly on capital gains and losses, which are declared in the IRPF. The Treasury obtains information through the platforms’ reporting obligation (form 173) and other mechanisms. It is crucial to be informed and comply with tax obligations to avoid penalties.

Keeping a detailed record of all your transactions and using tax management tools are best practices to simplify the reporting of your cryptos.

Dear EurocoinPay customer,

At EurocoinPay, we understand the importance of complying with your tax obligations related to your cryptocurrency transactions in Spain. Therefore, we provide you with all the necessary information so that you can go to your tax advisor and generate a draft of your tax return easily and accurately.

With this information provided by EurocoinPay, your tax advisor will be able to easily identify the capital gains or losses generated by your operations, as well as any other income subject to taxation. This will allow them to correctly apply the current regulations and complete your draft tax return efficiently.

We recommend you to contact your tax manager as soon as possible and provide him/her with the information provided by EurocoinPay so that he/she can advise you in the best way and help you meet your tax obligations within the established deadlines.

At EurocoinPay, we are committed to transparency and making it easier for you to manage your cryptoassets, including tax aspects. Please do not hesitate to contact our support team if you have any questions about the information provided.

Disclaimer: The information set forth herein should not be taken as financial advice or investment recommendation. All investments and trading involve risk and it is the responsibility of each individual to do his or her due diligence before making a decision.