Spain has emerged as one of Europe’s most crypto-friendly jurisdictions, with a growing number of individuals participating in cryptocurrency trading, mining, staking, and other blockchain-based activities. Despite its welcoming stance toward digital innovation, Spain maintains a robust tax framework for cryptocurrencies, ensuring compliance with both national laws and EU-wide transparency initiatives like the DAC8 directive. The Agencia Tributaria (AEAT), Spain’s national tax authority, oversees all aspects of crypto taxation, enforcing strict reporting requirements and penalties for non-compliance.
Understanding how digital assets are treated under Spanish tax law is essential for any investor, trader, or crypto earner operating in the country. Cryptocurrencies are legally classified as digital assets—not currency—and are treated similarly to property or stocks. This classification forms the foundation of Spain’s crypto tax system, which includes capital gains, income, wealth, and inheritance taxes. The First In, First Out (FIFO) method is typically used to calculate capital gains, adding another layer of complexity to accurate reporting.
Types of Crypto Taxes in Spain
Spain applies several types of taxes depending on how and why you acquire or dispose of crypto. These include:
- Capital Gains Tax (CGT): Levied when you sell cryptocurrency for fiat currency or use it to make purchases.
- Income Tax: Applies to earnings from mining, staking rewards, airdrops, or receiving salary in crypto.
- VAT Exemption: Following EU guidelines, cryptocurrency is exempt from Value Added Tax (VAT) when used as a means of payment.
- Wealth Tax: A regional tax applied if your total net worth exceeds €700,000.
- Inheritance & Gift Tax: Applies when crypto is transferred upon death or as a gift, with rates varying by region and relationship.
👉 Discover how to simplify your crypto tax reporting with expert tools and resources.
Tax Rates & Brackets
Capital Gains Tax
Profits from selling crypto are taxed progressively:
- 19% on gains up to €6,000
- 21% on gains from €6,001 to €50,000
- 23% on gains from €50,001 to €200,000
- 27% on gains from €200,001 to €300,000
- 28% on gains exceeding €300,000
Income Tax
Earnings such as mining income or crypto salaries fall under Spain’s Personal Income Tax (IRPF) brackets:
- 19% (up to €12,450)
- 24% (€12,451–€20,200)
- 30% (€20,201–€35,200)
- 37% (€35,201–€60,000)
- 45% (€60,001–€300,000)
- 47% (over €300,000)
Wealth Tax
Wealth tax is regionally administered and varies significantly:
- In Catalonia, rates range from 0.21% to 3.48%.
- In Madrid, full exemptions apply for net assets under €2 million, though reporting is still required above that threshold.
Exemptions
While income below €1,000 may not require filing a return, foreign crypto holdings exceeding €50,000 must be reported regardless of income level.
How Different Crypto Transactions Are Taxed
Understanding the tax implications of various crypto activities is crucial for compliance.
Buying & Selling Crypto
Purchasing crypto with fiat currency is not a taxable event. However, selling it—whether for euros or to buy goods and services—triggers capital gains tax based on the difference between purchase and sale value.
Mining & Staking
- Mining: Considered professional activity if done regularly. Miners must register as autónomos (self-employed), and rewards are taxed as income at rates up to 47%.
- Staking: Rewards are generally treated as investment income and subject to capital gains tax when sold (19%–28%).
Receiving Crypto as Salary
Any salary paid in cryptocurrency is treated as earned income and taxed at standard IRPF rates.
Crypto-to-Crypto Trades
Swapping one cryptocurrency for another is typically not a taxable event unless fiat currency is involved in the transaction chain.
Lending & Yield Farming
Tax treatment remains unclear due to lack of official guidance. However, most experts suggest these earnings are likely treated similarly to staking or interest income.
NFT Transactions
NFT sales are subject to capital gains tax when converted to fiat. Creators selling NFTs may also face income tax depending on frequency and intent.
👉 Stay ahead of tax season with strategies tailored for crypto investors.
Reporting Requirements & Compliance
All Spanish taxpayers involved in crypto must meet strict annual reporting obligations:
- Form 100 (Modelo 100): Filed by June 30 each year to report income and capital gains.
- Form 721 (Modelo 721): Required between January 1 and March 31 if foreign-held crypto exceeds €50,000 in value on January 1.
- Form 714 (Modelo 714): Mandatory for individuals with net assets over €700,000 for wealth tax purposes.
Taxpayers must retain detailed records—including dates, amounts, wallet addresses, counterparties, and EUR values—for at least five years. Failure to maintain proper documentation can result in audits, fines up to 150% of unpaid taxes, or even criminal charges if undeclared assets exceed €120,000.
Deductions & Loss Offsets
Certain expenses can reduce your taxable burden:
- Crypto Miners: Registered autónomos can deduct business costs such as electricity, hardware depreciation, and internet fees.
- Capital Losses: Losses from failed investments can offset capital gains and may be carried forward for up to four years.
Note: Transferring crypto between personal wallets or simply holding digital assets does not trigger taxation—unless tied to foreign asset reporting requirements.
Enforcement & Penalties
The AEAT actively monitors compliance using multiple tools:
- DAC8 Directive (2024): Requires crypto exchanges like Binance and Coinbase operating in Spain to report user data automatically.
- KYC Data & Blockchain Analytics: Authorities cross-reference identity data with public ledger activity to detect unreported transactions.
- Audits & Investigations: Increasingly common for high-net-worth individuals and frequent traders.
Non-compliance can lead to severe consequences:
- Fines up to 150% of owed taxes
- Criminal prosecution for evasion over €120,000 (potential jail time: 1–2 years)
With Form 721 enhancing transparency, the risk of detection has never been higher.
The Future of Crypto Taxation in Spain
As the EU prepares to implement the Markets in Crypto-Assets (MiCA) regulation by late 2025, Spain is expected to issue clearer guidance on decentralized finance (DeFi), NFTs, and DAOs. While the country fosters innovation, regulatory scrutiny will likely increase—especially around transparency and enforcement.
Investors should stay informed about evolving rules and consider professional advice to navigate this dynamic landscape.
👉 Prepare for future regulations with proactive compliance solutions today.
Frequently Asked Questions (FAQs)
Is cryptocurrency legal in Spain?
Yes. Cryptocurrency trading, mining, and usage are fully legal but subject to taxation under existing frameworks.
What is the capital gains tax rate on crypto in Spain?
It ranges from 19% to 28%, depending on the amount of profit realized during the tax year.
Are crypto-to-crypto trades taxable?
Generally not taxable if no fiat currency is involved. However, accurate recordkeeping is essential for future disposal events.
How are mining rewards taxed?
Mining income is treated as professional income and taxed up to 47%, requiring registration as an autónomo.
Do I need to report small crypto holdings?
You may not need to file if your income is under €1,000—but foreign holdings over €50,000 must be declared using Form 721 regardless.
What records should I keep for crypto taxes?
Maintain transaction logs with dates, values in EUR, wallet addresses, and descriptions for at least five years.
Final Thoughts
Spain’s comprehensive approach to crypto taxation ensures alignment with EU standards while maintaining domestic control over financial transparency. With capital gains taxed between 19% and 28%, income up to 47%, and strict reporting via Forms 100, 721, and 714, compliance is not optional—it's mandatory.
Given the complexity of FIFO calculations, regional wealth tax differences, and evolving DeFi regulations, leveraging tools like Koinly or Blockpit can streamline reporting. However, consulting a qualified tax professional remains the best way to ensure accuracy and avoid penalties.
In a rapidly changing environment shaped by MiCA and DAC8, being proactive about your obligations is the smartest investment you can make.