How to Pay Taxes on Crypto Income in Spain: Your Essential 2024 Guide

As cryptocurrency adoption surges in Spain, understanding how to pay taxes on crypto income is crucial for investors, traders, and miners. The Spanish Tax Agency (Agencia Tributaria) treats cryptocurrencies as taxable assets, not legal tender, meaning profits from crypto activities are subject to capital gains tax and income tax. Failure to comply can lead to hefty penalties. This comprehensive guide breaks down Spain’s crypto tax rules, reporting requirements, and practical tips to stay compliant.

Understanding Spain’s Crypto Tax Framework

In Spain, cryptocurrencies are classified as “digital assets” under tax law. This means:

• Capital Gains Tax (CGT) applies when you sell, trade, or spend crypto at a profit. Rates range from 19% to 26% based on profit amount.
• Income Tax (IRPF) applies to crypto earned through activities like mining, staking, or airdrops, taxed at your marginal rate (19%-47%).
• Wealth Tax may apply if your global assets (including crypto) exceed €700,000, with regional variations.

Note: Buying crypto with fiat currency or holding it long-term isn’t taxable—only disposal or earnings trigger obligations.

Crypto Transactions Subject to Tax in Spain

You must report:

• Trading: Selling crypto for EUR or other cryptocurrencies (e.g., BTC to ETH).
• Spending: Using crypto to purchase goods/services.
• Mining/Staking: Rewards are taxed as income at fair market value when received.
• Airdrops & Forks: Free tokens are taxable income if they result from prior ownership.
• Crypto Interest: Earnings from lending or DeFi platforms.

Example: Selling Bitcoin bought for €5,000 at €7,000 incurs CGT on €2,000 profit.

How to Calculate Your Crypto Tax Liability

For Capital Gains:

• Calculate profit: Selling Price – Purchase Price – Allowable Costs (e.g., transaction fees).
• Apply CGT rates: 19% (first €6,000 profit), 21% (€6,000-€50,000), 26% (€50,000+).

For Crypto Income:

• Value rewards (mining/staking) at market price when received.
• Add to annual income and tax at your IRPF bracket (19%-47%).

Tip: Use FIFO (First-In-First-Out) method for cost basis calculations. Crypto tax software like Koinly or TaxScout can automate this.

Reporting Crypto Taxes: Forms and Deadlines

Key filings:

• Form 720: Declare crypto held in foreign exchanges/wallets if total value exceeds €50,000. Due March 31.
• Modelo 100: Report all crypto income and capital gains annually. File between April 1-June 30.

Required records:

• Transaction history (dates, amounts, wallet addresses).
• Proof of acquisition costs and disposal values.
• Exchange statements and DeFi activity logs.

Penalties for Non-Compliance

The Agencia Tributaria actively tracks crypto via SII (Immediate Supply of Information) systems. Penalties include:

• Fines of 50%-150% of unpaid tax for undeclared income.
• Additional charges for late Form 720 filings (€5,000 per data group).
• Criminal prosecution for severe evasion (€120,000+).

5 Tips for Hassle-Free Crypto Tax Compliance

1. Track every transaction in real-time using apps like CoinTracking.
2. Separate personal and investment wallets for clearer audits.
3. Declare foreign holdings via Form 720 if applicable—even if no tax is due.
4. Consult a gestor (tax advisor) specializing in crypto for complex cases.
5. Leverage tax-loss harvesting: Offset gains by selling underperforming assets.

FAQ: Paying Taxes on Crypto in Spain

1. Do I pay tax if I transfer crypto between my own wallets?
No—internal transfers aren’t taxable events if you retain ownership.

2. Is crypto taxed if I hold it long-term?
Holding isn’t taxed. Tax applies only upon disposal (sale/trade/spend) or earning income.

3. How is staking income valued?
Taxed as income at market value when rewards are received. Later sales may incur CGT.

4. Can I deduct crypto losses?
Yes! Capital losses offset gains in the same year or carry forward four years.

5. What if I use a non-Spanish exchange?
You still owe Spanish taxes. Report via Form 720 if holdings exceed €50,000 abroad.

Staying informed and organized is key to navigating Spain’s crypto tax landscape. Always verify rules with a professional, as regulations evolve rapidly.