Cryptocurrency Taxation – Spain

Crypto gains taxed as savings income at same rates as stocks: 19% up to €6,000, 21% €6,000-€50,000, 23% €50,000-€200,000, 27% €200,000-€300,000, 28% above €300,000. No preferential rate for long-term holdings - holding period irrelevant.

Triggering events: selling crypto for EUR/USD (fiat), trading one crypto for another (BTC to ETH counts as taxable sale + purchase), using crypto to purchase goods/services, receiving crypto as payment for services. Staking and mining rewards taxed as general income at higher rates 19-47%.

Must use FIFO (First In, First Out) method for calculating gains. Cost basis = purchase price + acquisition fees. Sale proceeds = sale price minus selling fees. Cannot cherry-pick which units to sell. Complex for frequent traders.

Crypto losses can offset: other crypto gains in same year, other savings income gains (stocks, real estate) up to 25% of total, carried forward indefinitely to future years. Cannot offset against general income (salary). Strategic loss harvesting valuable.

Spanish tax residents must declare foreign crypto holdings exceeding €50,000 on Modelo 720 by March 31 annually. Report total value at December 31. Each crypto wallet/exchange account separately assessed against €50,000 threshold.

Failure to file Modelo 720 or filing late: minimum €5,000 penalty per type of asset, minimum €10,000 per item or data omitted. Can reach €100,000+. Undeclared assets treated as unjustified wealth gain taxed at 47% rate. Most severe reporting penalties in EU.

Must report: foreign exchange accounts (Coinbase, Binance, Kraken if not Spanish), foreign custodial wallets, foreign companies holding crypto. Does NOT need reporting: hardware wallets in Spain, crypto held on Spanish exchanges. Threshold applies to each category separately.

First year requires complete asset details and values. Subsequent years only if increased by €20,000+ or new accounts opened. Still severe penalty if miss first filing. Many expats caught unaware of requirement.

Crypto received from mining or staking taxed as general income (not savings) at progressive rates 19-47% based on fair market value at receipt. Much less favorable than capital gains rates. Must report as business/professional income on quarterly payments.

Free crypto received from airdrops or hard forks taxed as general income at fair market value when received. Creates immediate tax liability even if not sold. Subsequent sale triggers additional capital gain/loss.

NFT sales and trades follow same taxation rules as cryptocurrency. Treated as digital assets. Must report gains/losses. Modelo 720 reporting if foreign wallets exceed €50,000. Artist income from NFT sales taxed as professional income.

DeFi lending, liquidity provision, yield farming all potentially taxable. Each token swap = taxable event. Rewards = income. Spain tax authorities aggressive on DeFi. Recommend professional crypto tax advisor for substantial DeFi activity.

Spanish and EU exchanges required to report all user transactions to AEAT (Spanish tax authority). Automatic exchange of information under DAC8 directive from 2026. Non-compliance easily detected. Assume tax authority knows your activity.

Report all crypto transactions in annual IRPF tax return (Modelo 100) due April-June. Must calculate and report each gain/loss. Software or crypto tax specialist essential for more than handful of transactions. Mistakes costly.

Crypto taxation enforcement priority for AEAT. Frequent audits of crypto holders. Cross-reference exchange data, bank deposits, lifestyle expenses. Back taxes, interest, and penalties severe. Voluntary disclosure programs occasionally offered.