Crypto Taxes in Spain: a Guide for 2024

WhitepayPosted 18.01.2024
Crypto Taxes in Spain: a Guide for 2024

As of December 2023, Spain does not apply any specific crypto taxes. However, cryptocurrency gains are still #taken into account when calculating taxes. If you are a Spanish tax resident, and you use cryptocurrency, three main taxes may apply to you:

  • capital gain (savings) tax;
  • income tax;
  • wealth tax.

In this article, we will break down each of the three “cryptocurrency taxes” in Spain in detail. At the end, we will provide an example.

Disclaimer: this is an informational article. For an accurate calculation of your taxes, we advise you to consult a professional accountant or tax specialist.

Taxes on Capital Gains

Earned cryptocurrency is regarded as a capital gain (savings taxable income) when it is obtained by the selling, trading, swapping, or other disposal of an asset for cryptocurrency or fiat. The progressive rate of taxation on capital gains is between 19% and 26%.

Taxable IncomeTax Rates
Up to 6,000 EUR19%
>6,000 EUR ≤ 50,000 EUR21%
>50,000 EUR ≤ 200,000 EUR23%
200,000 EUR and up26%

First-in-first-out, or FIFO, accounting is utilized in Spain for both inventory valuation and cryptocurrency capital gains. In Spanish, it is called PEPS, which stands for "primero en entrar, primero en salir".

Taxes on Crypto Income (Impuesto sobre la renta)

When crypto is mined, earned, received as payment for a good or service, or gained as an active income in any other way, it is considered general taxable income, the tax rate on which is a higher tax rate than capital gains.

Here is the table of #income tax rates in Spain.

Taxable IncomeTax Rate*
Up to 12,450 EUR19%
> 12,450 EUR ≤ 20,200 EUR24%
>20,200 EUR ≤ 35,200 EUR30%
>35,200 EUR ≤ 60,000 EUR37%
>60,000 EUR ≤ 300,000 EUR45%
300,000 EUR and up47%

*The Tax Rate consists of state and regional taxes. The state tax is the same all over the country, but the regional tax may differ in different Autonomous Communities

site ua-2.png

The map may be outdated. Please, double-check the current rates of your Autonomous Community on the official websites.

Wealth Taxes (Impuesto sobre)

#wealth tax will also apply to you if the total worth of your assets exceeds 700,000 EUR (or 400,000 EUR or 500,000 EUR, depending on the Autonomy). Your net worth is determined by taking into account your cryptocurrency holdings as well as other assets (real estate, stocks, art and so on). A maximum of 300,000 EUR in allowance is available based on the valuation of your house. 

So, for example, if your net worth is 5,000,000 EUR, 500,000 EUR of which is your house, you need to pay wealth taxes on 4,000,000 EUR (5M minus 700k allowance minus 300k house allowance).

To calculate your wealth tax, you need to know the cumulative value of your taxable assets. The Tax Base is calculated as of December 31 of the previous year. So, for example, if you own 1 BTC, and its price on December 31 was 50,000 EUR, you need to add 50,000 EUR to your net worth.

Here is the calculation table:

FromUntilTax Rate*
0167,129.450.2%
167,129.45334,252.880.3%
334,252.88668,499.750.5%
668,499.751,336,999.510.9%
1,336,999.512,673,999.011.3%
2,673,999.015,347,998.031.7%
5,347,998.0310,695,996.062.1%
10,695,996.06Onwards3.5%

*The wealth tax rates are different in different Autonomous Communities. For example, Catalonia charges between 0.21% and 2.75%.

**The minimum taxed amount is also different. For example, in Madrid it is 700,000 EUR, but in Catalonia it is only 500,000 EUR.

site ua-6.png

The map may be outdated. Please double-check the info on the official websites.

The 60% Rule

There is “the 60% rule” in Spain. It says: the total amount of the Wealth Tax and the Income Tax paid in a given year cannot exceed 60% of the taxpayer's taxable income, or the income tax base. So, if you noticed that your expected cryptocurrency taxes in Spain will be more than 60%, you can refer to this rule to get a reduction.

Crypto Taxes in Spain: Taxable Events

Let's look at a few typical sources of income for a cryptocurrency user and the tax that will apply to them.

ActivityDescriptionTax
Crypto holding and sellingYou have been holding a cryptocurrency, it went up in value, and you decided to lock in your profit. Capital gains tax (applied to net profit)

Wealth tax (only if the total value of all your assets (including non-crypto) is greater than 700,000 EUR)
Crypto holding (no selling)You hold a cryptocurrency, it increased in value, but you do not sell it.Wealth tax (only if the total value of all your assets (including non-crypto) is greater than 700,000 EUR)
Successful crypto investmentsYou bought the cryptocurrency for less in fiat and sold it more expensively.Capital gain tax
Unsuccessful crypto investmentsYou bought a cryptocurrency for fiat more expensive and sold it cheaper.No tax
Successful crypto tradingYou traded on a cryptocurrency exchange and made a profit through a series of successful trades.Capital gains tax
Unsuccessful crypto tradingYou traded cryptocurrency and lost money.No tax
MiningYou earned cryptocurrency through mining and realized a profit.Income tax (applied to net profit)
StakingYou earned cryptocurrency through staking (earned passive income for holding).Capital gain tax
AirdropYou received cryptocurrency as part of a drop.Income tax
Full-time salary in cryptoYou work for a blockchain company and receive a salary in cryptocurrencies.Taxes are paid by your employer
Income in cryptoYou accepted payments in cryptocurrency (for example, for your services on freelancing).Income tax
ArbitrageYou are engaged in reselling cryptocurrency and earn on the difference of the exchange rate on different platforms.Income tax (applied to net profit)
LendingYou lend cryptocurrency and receive passive income for it.Capital gain tax
 

This is not a complete list of cryptocurrency earning scenarios, but a common logic will apply to all of them:

  • Investment income — capital gain tax;
  • Active earning — income tax;
  • Holding assets totaling 400,000-700,000+ EUR (including non-cryptocurrency assets) — wealth tax.

Guided by this logic and the official cryptocurrency tax rates in Spain, we can calculate several specific scenarios.

Crypto Tax in Spain: Example

Let's assume you are a tax resident of Spain living in Barcelona. Your net worth as of December 31st of last year was 1,300,000 EUR, of which 500,000 EUR is your only house in Barcelona.

During this year, you earned 40,000 EUR from cryptocurrency investments, another 10,000 EUR from DeFi-staking, and 2,000 EUR from airdrops.

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Step 1: Calculating wealth tax

Your net worth is calculated before all taxes are paid. Of your 1,300,000 EUR, 500,000 EUR are not subject to wealth tax in Catalonia. You can also deduct part of the value of your house (300,000 EUR) from this amount. This leaves you with a taxable amount of 500,000 EUR.

Of the 167,129,45, you have to pay tax in Catalonia at a rate of 0.210%.

Then, of the remaining 332,870.55, you need to pay tax at a rate of 0.315%.

Total:
(167,129.45 х 0.0021) + (332 870,55-350,97 х 0.00315) = 350,97 EUR + 1 048,54 EUR = 1 399,51 EUR.

Step 2: Calculating income tax

If your sources of income, only 2000 EUR from airdrops are subject to income tax. They are counted at the minimum income tax rate of 20% in Catalonia.

Total:
2000 x 0.20 = 400 EUR.

Step 3: Calculating capital gain tax

The capital gain tax applies to staking and income from cryptocurrency investments, i.e. 50,000 EUR.

The first 6000 EUR of these are taxed at the rate of 19%. The remaining 44,000 fall under the 21% rate.

Total:
(6000 x 0.19) + (44,000 x 0.21) = 1140 EUR + 9 240 EUR = 10 380 EUR.

Step 4: Summarizing cryptocurrency taxes in Spain

Total for the three taxes you will have to pay:
1,119.38 + 400 + 10,380 = 11,899.38 EUR

Note: this amount may not be final. It may also be affected by:

  • Other types of taxes (for example, tax on air pollution may be applied to Bitcoin miners).
  • Taxpayer category.
  • Family status.
  • Region of residence (autonomous region of Spain).
  • Availability of benefits and deductions.
  • And other parameters.

That's why we insist that this is an introductory article that can give you a rough idea of the taxation of cryptocurrencies in Spain. To calculate your own taxes, we recommend consulting a professional.

Form 720: A New Reporting Requirement for Crypto Assets

Form 720 is an informative declaration on assets and rights located abroad. The declaration must contain information on accounts in financial entities located abroad, real estate outside Spain and other similar assets.

Do cryptocurrencies have to be declared on the Model 720? The Ministry of Finance admits that it is not necessary to include information on cryptocurrencies in the Model 720, after no regulatory development has been implemented yet. But you can still do this if you want.

Useful Links to Learn More About Crypto Taxes in Spain

Accepting crypto payments in Spain is subject to tax, so we advise you to explore:

It is also important to consult with a tax specialist before connecting crypto acquiring.

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