Comprehensive Guide to Cryptocurrency Taxation in Spain

Cryptocurrencies like Bitcoin and Ethereum have gained popularity not only as investment assets but also as tools for financial transactions. However, their growing adoption has raised significant regulatory and tax challenges worldwide. In Spain, understanding the taxation of cryptocurrencies is crucial for both investors and businesses operating in this field. Here, we provide a comprehensive guide covering the key legal and tax considerations that stakeholders should be aware of.

1. Definition and Classification of Cryptocurrencies

What are Cryptocurrencies?

Cryptocurrencies are digital representations of value based on blockchain technology. They include cryptocurrencies like Bitcoin, altcoins like Ethereum, and tokens representing specific assets or rights within a digital ecosystem.

Legal Classification

In Spain, cryptocurrencies are classified as intangible assets, not legal tender. This classification directly impacts how transactions and possession of cryptocurrencies are taxed.

2. Tax Obligations for Individuals

Capital Gains and Losses

Profits from the sale of cryptocurrencies are considered capital gains and are subject to Personal Income Tax (IRPF). Losses can be offset against gains in the same tax year or the following four years.

Tax Rates

  • Up to 6,000 euros: 19%
  • From 6,000 to 50,000 euros: 21%
  • More than 50,000 euros: 23%

Declaration of Cryptocurrencies

Model 720

There is debate on whether cryptocurrencies should be included in this foreign asset declaration. However, it’s advisable to declare them to avoid potential penalties.

Model 100

Income tax return (Model 100), including gains and losses from cryptocurrencies.

Cryptocurrency Mining

Income from cryptocurrency mining is considered economic activity and is subject to IRPF. Miners must also register and file quarterly VAT returns (Model 303), although mining is currently VAT exempt in the EU.

3. Tax Obligations for Companies

Accounting and Record Keeping

Companies dealing with cryptocurrencies must maintain accurate and detailed accounting records of transactions.

Corporate Income Tax

Profits from cryptocurrencies are included in the taxable base for Corporate Income Tax, with a general rate of 25%.

VAT and Transactions

Cryptocurrency transactions are generally VAT-exempt in Spain, in line with EU regulations. However, services paid with cryptocurrencies are subject to VAT and must be declared in Model 303.

4. Exchanges and Cryptocurrency Platforms

Platform Obligations

Cryptocurrency exchanges operating in Spain are subject to Anti-Money Laundering (AML) regulations and must implement Know Your Customer (KYC) policies. They are not required to withhold IRPF but must provide detailed information to facilitate user tax compliance.

Fiscal Fraud Prevention Law

New regulations require reporting of cryptocurrency holdings and transactions, with significant penalties for non-compliance.

5. Tax Planning and Recommendations

Specialized Consultancy

Seeking advice from cryptocurrency tax experts is crucial due to the complex and evolving nature of cryptocurrency taxation laws.

Record Keeping

Maintaining detailed records of all cryptocurrency transactions is essential for audit purposes and compliance.

Tax Optimization

Utilizing legal strategies to minimize tax liabilities, such as offsetting losses against gains.

Legislative Updates

Staying informed about legislative changes is vital to adjust strategies and comply with tax obligations.


Investing in cryptocurrencies in Spain presents opportunities alongside significant tax responsibilities. Staying informed, documenting transactions meticulously, and obtaining professional advice are essential steps to comply with regulations and maximize benefits in this dynamic market.

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