Crypto Taxes in Spain: a Guide for 2024

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Navigating cryptocurrency taxation in Spain requires a clear understanding of how digital assets are treated under local tax law. As of 2024, Spain does not impose a dedicated crypto-specific tax. However, profits and holdings from cryptocurrency activities are integrated into the broader tax system through three primary mechanisms: capital gains tax, income tax, and wealth tax. For Spanish tax residents, compliance hinges on accurately reporting these earnings and valuations in line with national and regional regulations.

This guide breaks down each applicable tax, outlines key taxable events, and provides a real-world example to help you estimate your potential liabilities. Whether you're investing, trading, staking, or receiving crypto as payment, understanding these rules is essential for legal and financial clarity.

Capital Gains Tax on Cryptocurrency

When you sell, trade, swap, or otherwise dispose of cryptocurrency at a profit, the gain is classified as savings income and subject to capital gains tax. The tax rate follows a progressive scale ranging from 19% to 26%, based on the amount of net gain realized during the fiscal year.

Here’s the current capital gains tax bracket in Spain:

Spain applies the First-In, First-Out (FIFO) method—known locally as PEPS (Primero en Entrar, Primero en Salir)—to determine which units of crypto are considered sold. This means the earliest acquired assets are treated as the first disposed of, impacting your cost basis and taxable gain.

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Income Tax on Active Crypto Earnings

Cryptocurrency earned through active efforts—such as mining, staking rewards (in some interpretations), airdrops, freelancing payments, or salary paid in crypto—is generally treated as general taxable income. This category is taxed at higher progressive rates than capital gains.

The income tax brackets (combining state and regional rates) are:

⚠️ Note: Regional tax rates vary across Spain’s Autonomous Communities. For example, Catalonia and Madrid apply different surcharges. Always verify the combined rate applicable in your region.

Wealth Tax on Crypto Holdings

If your total net worth exceeds certain thresholds, you may be liable for wealth tax (Impuesto sobre el Patrimonio). Cryptocurrency holdings are included in your overall asset valuation as of December 31 of the previous year.

The national threshold is €700,000, though some regions set lower limits:

A key allowance exists for your primary residence: up to €300,000 can be deducted from the taxable value of your home.

The progressive wealth tax rates are:

Regional variations apply—Catalonia’s top rate is 2.75%, for example.

The 60% Rule: Limiting Total Tax Burden

Spain enforces a critical safeguard known as the “60% rule” (Regla del 60%). This rule ensures that the combined total of your wealth tax and income tax cannot exceed 60% of your taxable income for the year.

If your calculated liability exceeds this threshold, you’re entitled to a reduction to bring it within the 60% limit. This is particularly relevant for high-net-worth individuals with substantial crypto portfolios.

Common Taxable Events in Crypto

Understanding what triggers a tax obligation is crucial. Here’s a breakdown of typical crypto activities and their tax treatment:

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Frequently Asked Questions (FAQ)

Q: Do I pay tax if I only hold cryptocurrency without selling?
A: You don’t pay capital gains tax on unrealized gains. However, if your total net worth exceeds regional wealth tax thresholds (e.g., €500,000 in Catalonia), you may owe wealth tax based on your crypto’s value as of December 31.

Q: Are staking rewards taxed as income or capital gains?
A: In Spain, staking rewards are typically treated as capital gains when disposed of, not as immediate income. However, tax authorities may reassess this based on activity level.

Q: How is crypto valued for wealth tax purposes?
A: The market value of your crypto on December 31 of the previous year is used. For example, 1 BTC valued at €50,000 on that date adds €50,000 to your net worth.

Q: Is there a tax exemption for small crypto transactions?
A: No specific exemption exists for small trades. All gains must be reported regardless of size.

Q: Do I need to report my crypto on Form 720?
A: Currently, the Spanish Ministry of Finance states that cryptocurrencies do not need to be declared on Form 720, which reports foreign assets. However, this could change with future regulation.

Q: Can I use crypto losses to reduce my tax bill?
A: While realized losses aren’t directly deductible against income, they can reduce your overall capital gains liability when calculating net profit.

Practical Example: Calculating Your Crypto Taxes

Let’s assume you’re a tax resident in Barcelona with:

Step 1: Wealth Tax Calculation (Catalonia)

Apply Catalan rates:

Step 2: Income Tax

Only airdrop income (€2,000) is taxed as income at 24% (Catalonia rate):
→ Income tax: €480

Step 3: Capital Gains Tax

Total gains from investments + staking = €50,000

Step 4: Total Tax Liability

€1,399.51 (wealth) + €480 (income) + €10,380 (capital gains) = €12,259.51

Note: This does not include potential regional adjustments or deductions.

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