Crypto Taxes in Spain

How Crypto taxes works in Spain?



Introduction

Cryptocurrency and tax compliance in Spain. Below you will find everything from Bitcoin to Ethereum taxes, ensuring you navigate the complexities with ease. The tax rate for capital gains ranges from 19% to 26%, depending on the taxpayer's taxable income. Keep reding for understanding crypto taxes in Spain.

Do I need to pay taxes for Bitcoin?

Spanish citizens are mandated to declare their foreign cryptocurrency holdings by the end of March 2024. This requirement specifically applies to individuals whose balance sheets reflect cryptocurrency assets exceeding the equivalent of 50,000 euros.

Spanish residents holding crypto assets on non-Spanish platforms must adhere to this declaration obligation, following new laws governing the taxation of virtual assets.

The Spanish Tax Administration Agency, commonly known as Agencia Tributaria, has introduced the form 721 , a tax declaration form for virtual assets abroad. This form was initially announced in the Boletín Oficial del Estado, the official state gazette of Spain, on July 29, 2023.

The submission period for the form 721 declaration is set to commence on January 1, 2024, and conclude on the last day of March. Both individual and corporate taxpayers are required to declare the amount of funds stored in their foreign crypto accounts as of December 31, 2023.

However, the declaration obligation is applicable only to individuals whose balance sheets show cryptocurrency assets exceeding the equivalent of 50,000 euros (approximately $55,000). Those who store their assets in self-custodied wallets must report their holdings using the standard wealth tax form 714 .

In recent times, the Agencia Tributaria has intensified efforts to enforce compliance among local holders of crypto assets. In April 2023, it issued 328,000 warning notices to individuals who hadn't paid taxes on their crypto holdings for the 2022 fiscal year. This marked a significant annual increase of 40%, as there were only 15,000 notifications in 2021 and 150,000 in 2022.

Spain is actively implementing various regulations to govern the crypto space. In October, the Spanish Ministry of Economy and Digital Transformation announced that the first comprehensive European Union crypto framework, the Markets in Crypto-Assets Regulation, would be enforced nationally in December 2025, six months ahead of the official deadline.

In November, the National Securities Market Commission, the principal financial regulator in Spain, initiated its first case against a technology provider for violating rules related to the promotion of cryptocurrencies.

Capital gains tax

Gains from selling, swapping, or spending cryptocurrency are viewed as savings income and are generally subject to taxation under Personal Income Tax (PIT). The tax rate for capital gains ranges from 19% to 26%, depending on the taxpayer's taxable income.

Income tax

Income from mining, staking, and other activities related to cryptocurrency mining may be considered income from a business activity and taxed accordingly. The tax rate for business income can be up to 47%.

Wealth tax

If your cryptocurrency holdings exceed a certain threshold, you may be subject to wealth tax. The threshold varies depending on the Autonomous Community where you live. The tax rate for wealth tax ranges from 0.7% to 3.5%.

Inheritance and donations tax

If you receive cryptocurrency as an inheritance or gift, you will need to include it in your inheritance and donations tax (ISD) statement. The tax rate for inheritance and donations tax varies depending on the Autonomous Community where you live, but it is generally between 7% and 36.5%.