As cryptocurrency adoption grows in Spain, the Agencia Tributaria (Tax Agency) has intensified scrutiny on digital asset transactions. Failing to properly declare crypto income can trigger audits, penalties, and legal consequences. This guide breaks down Spain’s crypto tax framework, helping you comply confidently while maximizing deductions.
## Is Cryptocurrency Taxable in Spain?
Yes. Spain treats cryptocurrencies as taxable assets under the Personal Income Tax Law (Ley del Impuesto sobre la Renta de las Personas Físicas). Key principles include:
– **Residency rules**: Spanish tax residents pay taxes on worldwide crypto income
– **Asset classification**: Crypto is considered a “movable asset” for capital gains tax
– **No specific crypto law**: Existing tax regulations apply, with guidance from the DGT (Dirección General de Tributos)
## What Crypto Activities Trigger Taxes in Spain?
You must report these taxable events:
1. **Selling crypto for fiat currency** (e.g., BTC to EUR)
2. **Crypto-to-crypto trades** (e.g., ETH to SOL)
3. **Staking rewards and mining income** (treated as ordinary income)
4. **Earning crypto as payment** for goods/services
5. **Airdrops and hard forks** (if they provide economic benefit)
6. **DeFi activities** like lending yields or liquidity mining
*Non-taxable events include:*
– Buying crypto with fiat
– Holding crypto
– Transferring between your own wallets
## How to Calculate Crypto Gains and Losses
Use this formula for each transaction:
> **Taxable Gain = Sale Price – (Acquisition Cost + Allowable Expenses)**
**Key components**:
– **Acquisition cost**: Original purchase price plus transaction fees
– **Sale price**: Market value in EUR at transaction time
– **Allowable expenses**: Blockchain fees, exchange commissions
*Example*: You bought 1 ETH for €1,500 (€20 fee). Later sold for €2,000 (€15 fee). Taxable gain = €2,000 – (€1,500 + €20 + €15) = €465
**Loss offset rules**:
– Capital losses offset capital gains in the same tax year
– Unused losses carry forward up to 4 years
## Step-by-Step Reporting Process
Follow this workflow for accurate filing:
1. **Gather records**: Compile all transaction history (dates, amounts, EUR values)
2. **Calculate gains/losses**: Use FIFO (First-In-First-Out) accounting method
3. **Complete Modelo 100**: Report gains on Schedule 2.1.7 (Rendimientos del Capital Mobiliario)
4. **File Modelo 720 if applicable**: Required if foreign exchange holdings exceed €50,000
5. **Submit by deadline**: April 1 – June 30 annually for previous year’s income
## Penalties for Non-Compliance
Failure to report accurately risks:
– **Late filing fines**: €100 minimum + interest
– **Underpayment penalties**: 50-150% of unpaid tax
– **Criminal charges**: For evasion over €120,000
– **Asset freezing**: Via the Tax Agency’s investigation unit
## 5 Essential Record-Keeping Tips
Maintain these records for 4 years:
1. Dated transaction logs from all exchanges/wallets
2. Screenshots of EUR conversion rates at transaction time
3. Receipts for hardware/software used in mining
4. Documentation of airdrops or fork events
5. Professional tax advisor correspondence
## Frequently Asked Questions (FAQ)
**Q: Do I pay tax if I only hold crypto?**
A: No. Taxation only applies when you dispose of crypto through selling, trading, or spending.
**Q: How are crypto-to-crypto trades taxed?**
A: Each trade is a taxable event. You must calculate gains in EUR based on market values at both acquisition and disposal.
**Q: What tax rate applies to crypto gains?**
A: Capital gains are taxed at 19-28% based on profit amount. Mining/staking rewards are taxed as ordinary income up to 47%.
**Q: Must I report crypto on foreign exchanges?**
A: Yes. Spanish residents must declare worldwide crypto income regardless of exchange location.
**Q: Can I deduct crypto losses?**
A: Yes. Capital losses reduce taxable gains. Excess losses carry forward for 4 years.
**Q: Is there a minimum threshold for reporting?**
A: No. All crypto gains must be reported regardless of amount.
Proactive reporting prevents penalties. Consult a Spanish tax advisor for complex cases like DeFi or NFT transactions. Keep detailed records – the Tax Agency increasingly uses blockchain analytics tools for verification.
