How to Report NFT Profit in Spain: Complete Tax Guide for 2024

Understanding NFT Taxation in Spain

As NFTs (Non-Fungible Tokens) explode in popularity, Spanish taxpayers must navigate complex reporting requirements for profits. Whether you’re an artist, collector, or investor, Spain’s Tax Agency (Agencia Tributaria) treats NFT transactions as taxable events. This guide breaks down exactly how to report NFT profits while avoiding penalties – crucial knowledge as Spain tightens crypto oversight.

Step-by-Step: Reporting NFT Capital Gains

For occasional sellers, NFT profits typically qualify as capital gains. Follow this process:

1. Calculate your profit: Sale price (converted to EUR) minus acquisition cost and deductible expenses (gas fees, platform commissions)
2. Determine holding period: Assets held 1 year = long-term
3. Apply tax rates:
   • Short-term: Added to regular income (19%-47% based on brackets)
   • Long-term: Savings tax rate (19% first €6,000; 21% €6,000-€50,000; 23% above €50,000)
4. Report on Form 100: Declare gains in Box 326 (short-term) or Box 323 (long-term) during annual income tax filing (April-June)

Reporting Professional NFT Income

If you create/sell NFTs regularly, you’re likely considered a professional:

• Register as autónomo (self-employed) within 30 days of first sale
• File quarterly VAT returns (Modelo 303) – NFTs currently exempt from VAT
• Pay quarterly income tax installments (Modelo 130)
• Maintain detailed records: Sales ledgers, expense receipts, wallet statements
• Income taxed at progressive rates (19%-47%) plus social security contributions

Essential Documentation Requirements

Spanish tax authorities require:

1. Dated transaction records showing EUR values (use exchange rates at transaction time)
2. Proof of acquisition costs and ownership history
3. Wallet addresses and blockchain transaction IDs
4. Receipts for deductible expenses (platform fees, creation tools)
5. Foreign exchange records if using non-EUR platforms

Critical Mistakes to Avoid

• Ignoring small transactions: All sales must be reported regardless of amount
• Forgetting cost basis: You can deduct original purchase price plus improvement costs
• Mixing personal/business wallets: Maintain separate accounts for professional activity
• Missing deadlines: Annual declaration due June 30; quarterly filings due April, July, October, January 20
• Omitting losses: Capital losses offset gains and carry forward 4 years

Frequently Asked Questions (FAQ)

Do I pay taxes if I only trade NFTs occasionally?

Yes. All profits from NFT sales are taxable, regardless of frequency. Occasional sellers report as capital gains.

How do I value NFTs purchased with cryptocurrency?

Convert crypto value to EUR using the exchange rate at acquisition and sale times. Document the source of your rate data.

Are NFT airdrops and royalties taxable?

Airdrops count as acquisition at €0 cost basis. Royalties qualify as miscellaneous income (Box 26 on Form 100).

What if I use a foreign NFT marketplace?

You must still declare profits. Foreign platforms may report to Spanish authorities under DAC8 regulations.

Can I deduct gas fees and minting costs?

Yes. Transaction fees, minting expenses, and platform commissions are deductible from your profit calculation.

When should I register as self-employed?

If you make >€1,000/year from NFTs or demonstrate habitual commercial activity, register immediately to avoid penalties.

Disclaimer: Tax regulations evolve rapidly. Consult a Spanish asesor fiscal for personalized guidance as penalties for non-compliance reach 150% of owed tax plus interest.