Cryptocurrencies have increasingly gained their place at the heart of global finance.
If you live in Spain and have been buying, selling, staking or even just holding crypto, you must have wondered at some moment, "Do I need to declare tax as a crypto holder, how is crypto taxed and what happens if I don't declare my crypto assets, or even what crypto assets do I declare?"
In this guide, we will answer all your questions: how crypto taxes function in Spain, how and when to file crypto taxes, compare the Spanish tax system to those in Germany, Portugal, France and the U.S. We will also look at what to declare and give you tips on staying on the right side of the law without losing your mind nor your coins.
Are cryptocurrencies taxed in Spain?
Yes, absolutely. The Spanish Tax Agency (Agencia Tributaria or AEAT ) treats cryptocurrencies as digital assets, therefore subject to taxation. Spain sees profits from crypto taxable, either as Capital gains or as Income.
The Agencia Tributaria actively monitors crypto activity through international information-sharing agreements and to have access to any record across borders, They now require exchanges and platforms to report transactions. So, yes! They can trace your crypto dealings at the speed of light.
Takeaway: If you're earning, trading, staking, or receiving crypto in any way, there's a good chance it's taxable. Let's show you what activities are taxed and need declaration.
What crypto-related activities must be declared?
Are you one of the many people that mistakenly think crypto is only taxed when it is traded for fiat? Crypto is not only taxable when converting to Euros. As a matter of fact, there is a wide range of taxable activities like exchanging, earning, or receiving crypto as gifts and in other forms. Let's make it clearer…
- Selling crypto with profit or loss
If you sell crypto for fiat, let's say you sold some Bitcoins for Euros or for Dollars, any difference between the cost price and selling price is a capital gain or loss. That gain must be reported on your Modelo 100 income tax form.(stay with us to know what the Modelo 100 form is)
Tip: Capital gains are calculated using the FIFO (First In, First Out) method unless otherwise specified.
- From-Crypto-to-crypto exchange
Swapping one cryptocurrency for another is still taxable, Suppose you have some Bitcoins and you want to diversify your wallet by holding other crypto currencies, you decide to swap some Bitcoins for some Ethereum coins and Solana coins, Spain sees this as a disposal of the original asset (Bitcoin) which is taxable even if you did not touch fiat. You must calculate the market value in euros when the exchange took place.
- Income from Staking, Mining, Airdrops, or Play‑to‑Earn.
Given an uncareful situation, you might think earning rewards from staking is not taxable, well, shockingly, it is. The Spanish government considers it as generated income.
Also, receiving tokens from participating in a DeFi yield farming, crypto mining, promotional airdrops or earnings from a metaverse Play-to-Earn game is considered as generated income and must be declared. It is taxed at ordinary income tax rates and must be reported in the year received.
Make sure to record the fair market value in euros at the time of exchange.
- Receiving Crypto as payment for goods or services
As every good vendor or service provider receives payments in local currencies, it may be in Euros, Dollars or Pounds. If a freelancer, consultant, content creator, or any other service provider receives payment in the form of cryptocurrency, it is considered as income and is taxed at an effective income tax rate.
Payment for a good or product in cryptocurrency as well is taxed as income. The Spanish tax authority treats this as an economic activity. The amount you report is based on the fair market value in euros of the crypto at the time of the trade.
- Crypto as gifts & donations
In Spain, giving or receiving crypto as a gift has taxation tendencies. Consider a situation where a group of friends decide to give you some Bitcoin as a present on your birthday. I bet you would never think there is a tax on the gift. You pass the receiver must pay a gift tax based on the market value in euros at the time of the gift, following regional rules. The giver doesn’t pay a gift tax but may owe capital gains tax if the crypto has increased in value since it was acquired.
For example, in 2021 if you bought 1 ETH at €1,000 and if you gift it to a friend in 2022 when 1 ETH is worth €2,000 you made a €1000 gain even if you didn't sell it. This gain must be declared for that tax year. In short, the recipient pays gift tax, and the giver pays tax on any gain received.
Having seen what activities are taxed in Spain, let's look at how these activities are grouped and calculated from the capital gains to income brackets.
How are Crypto taxes calculated in Spain?
Spain taxes crypto earnings either as capital gains or as income. Let’s look at these scenarios.
1. Calculating Capital Gains
When you sell, exchange, or dispose of cryptocurrency, your capital gain or loss is calculated using the FIFO (First In, First Out) method. This means the first crypto you bought is considered the first you sold.
FIFO assumes you sell the coins you bought first before selling later ones. Once sold, your profit is based on the price you paid for those oldest coins.
Example: You bought 1 Bitcoin for €20,000 in May and another for €10,000 in June. If you sell 1 Bitcoin in July for €40,000, FIFO treats it as if you sold the May one. So, your profit is €40,000 minus €20,000, which is €20,000.
Formula: CG = SP - AC
Where:
- CG = Capital Gain or Loss
- SP = Selling Price (in €)
- AC = Acquisition Cost (in €, determined using FIFO method)
2. Income Tax Rates (IRPF) Applied to Crypto Gains
Capital gains are taxed progressively under the IRPF (impuesto sobre la renta de las personas físicas. Personal Income Tax brackets:
It's worth noting that income from staking, mining, or business activities is taxed at regular income tax rates, which can be as high as 47%.
Offsetting gains with previous losses
By now you are probably wondering what will happen if you do not gain or earn in a given tax year, do you still declare your loss and, how?. Until now we have only seen how to declare your earnings. If you've incurred some losses trading in the past, there's good news: you can offset gains with past losses, up to a limit of 25% of your net savings income.
What does it mean to offset gains?In simple terms, it means using your losses to reduce the amount of tax you are supposed to pay on your gains. If you can prove that you incurred losses in a given year, these losses will be subtracted from your gains and you only have to pay tax on what is left.
Example:
If you had a €5,000 loss from selling Bitcoin earlier in the year and later made an €8,000 gain from selling other cryptocurrencies, you can offset the gain by the loss, so you only pay tax on €3,000
In the case where you lost more than you gained, you do not lose them. You can carry forward these losses to the next year, subtract the losses from the gains of that year and pay less taxes on your gains. This carry forward process can be done repeatedly for up to four years.
Tip: Always keep track of
- Date of purchase and sale
- Amount spent and received
- Market value in EUR
What tax forms do Crypto investors in Spain need to file?
In general filing tax is a pain in the neck. Adding crypto can seem more complicated. Surprisingly it is as simple as Knowing and tracking your activities and numbers and then filling it on a form.
These forms are Modelo 100, Modelo 720 and Modelo 714, where you simply enter details like acquisition costs, sale prices, and transaction dates. These forms are to be filed annually between April and June for the past tax year. For example, the deadline for the 2024 tax year was June 30, 2025.
- Modelo 100 (Income Tax Declaration)
This is the annual income tax return also known as Impuesto sobre la Renta de las Personas Físicas. This form is particularly used by individuals to file their personal income tax returns. This form contains report on your:
- Capital gains from crypto trading
- General income from staking,mining,etc
- Payments and other activities (if self-employed)
- Modelo 721 (Declaration of Foreign Crypto Assets)
Introduced in 2024 Since the European Court of Justice (ECJ) has declared the Modelo 720 illegal, it is no longer enforceable. This form is for reporting cryptocurrency holdings outside Spain. You must file Modelo 721 if:
- Your total crypto holdings abroad exceed €50,000 as of December 31 of the reporting year.
- You held more than €50,000 at any point in the year but less than €50,000 on December 31. In this case, the date where your holdings changed needs to be reported as well.
- Modelo 714 (Wealth tax form)
Also known as Impuesto sobre el Patrimonio, This form is used for declaring your worldwide assets. Your complete net worth which obviously includes crypto and every crypto assets you have if the net total exceeds €700,000.
Primary residents have up to €300,000 exemption. In this form all crypto assets must be listed clearly because Spain considers crypto as part of your net worth.
Another important thing to note is that in Spain, wealth tax rates vary by region, typically from 0.2% to 3.75%. Some regions like Madrid and Andalusia offer 100% tax exemptions on gifts and inheritance ( a point worth noting if you live in these regions.).
Now we understand that there can be differences in taxes between one region and the other in the same country, it will be worth looking at crypto taxes in some other countries in comparison to Spain.
Crypto Tax Comparison: Spain vs. Other Countries
Each country has distinct tax rules and systems, Crypto therefore is taxed differently in different countries. While Spain has some of the most detailed rules and complex crypto tax requirements, other countries seem much more relaxed on crypto taxes, especially if you are holding long-term. You could even hold crypto tax-free depending on the country and how long you have been holding..
Spain vs Germany, Portugal, France, the US and El Salvador
Germany 🇩🇪
Tax rules in Germany are very favorable for long-term crypto investors. If you hold your cryptocurrency for more than 12 months before selling, you don’t have to pay any tax on the profits no matter how much you gain.
A smart move will be to be patient, hold the crypto for more than a year,then enjoy your crypto gains at 100% tax-free. But if you decide to sell your crypto within a year, it's taxed as income (depending on your tax bracket).
Portugal 🇵🇹
Portugal did not tax crypto gains for individual investors until 2023. If you sell your crypto within one year of buying it, you’ll pay a 28% flat tax on the profits. Holding the crypto for more than one year, your gains become tax free. As a smart crypto investor holding crypto long-term benefits you big time.
France 🇫🇷
France has quite an interesting tax system. It directly applies a 30% flat tax called the PFU (Prélèvement Forfaitaire Unique) on crypto gains made by individual, non-professional investors. If you only trade crypto once in a while, France hits you with a flat 30% tax on your profits including income and social contributions.
However, if you trade frequently or at high volumes,The French authority may classify you a pro, that means your crypto gains will be hit by an unpleasant progressive income tax rate that can be significantly higher than 30%.
In short, occasional investors have a lower tax burden, while professional-level traders face higher taxes and complex regulations
The United States of America 🇺🇸
The U.S. tax authorities see just about everything as taxable, traded ETH for SoL, got some tokens from airdrop or some rewards from staking? Obviously you are getting taxed on all of that depending on your income level and how long you held the crypto before selling. Capital gains are taxed within the range of 10% to 37% depending on your income level.
El Salvador: Bitcoin as Legal Tender 🇸🇻
Did you know El Salvador is the first country to officially recognize Bitcoin as legal tender, giving it the same status as the U.S. dollar in its economy? Different from Spain, France, or the U.S. where most crypto transactions are taxable events, El Salvador offers a uniquely favorable environment for using Bitcoin in daily life, though some practical tax considerations remain.
In El Salvador, Bitcoin is used effortlessly by individuals for daily activities, from buying coffee, paying of salaries to even settling bills without the set back of being taxed on every little transaction made. El Salvador is using the almost tax-free system to attract investments, innovation and growth to its economy.
What Happens If You Don’t Declare Crypto in Spain?
Thinking about skipping your crypto taxes in Spain? Think again! The Agencia Tributaria is on the hunt for unreported crypto and they are leaving no stone unturned. They have become much more active in identifying and investigating undeclared crypto gains, using advanced tools and data sharing agreements.
Failing to declare your cryptocurrency income in Spain can lead to serious legal and financial consequences. Here are the risks you may face:
- Fines
Failing to report your crypto holdings or gains in Spain is something you shouldn't be a victim to. The fines can vary widely based on how much you didn’t declare and how serious the omission is.
Lets say you forgot to report a simple and small swap you did from last year, in which you didn't even gain any coin at all, just an oversight. This is legally a crime against the tax authority and you can pay a fine up to a few hundred Euros if you correct this error quickly. But if the Tax authorities suspect that you were trying to hide something and come for you, you can be fined up to thousands of Euros.
The more money involved and the longer the delay, the harsher the penalty is likely to be. In some cases, failing to file required forms like Modelo 720 or 721 for foreign crypto assets can trigger fixed penalties of €5,000 per error, with a minimum total fine of €10,000. So even a simple mistake can get pretty expensive.
- Interest Charges on Unpaid Tax
Like every normal agreement, when you don’t pay the crypto taxes on time, the Spanish tax agency will charge you interest on the unpaid amount. This interest starts accumulating from the day the tax was due until the day you pay it. Even if you didn’t mean to delay payment, the interest still applies automatically.
While the rate may seem insignificant at the beginning, around 4%–5% annually,it adds up as time passes. The longer the delay, especially on large unpaid amounts, the higher the interest.
- Audits and Legal Action in Severe Cases
Some Crypto dealers deliberately hide large amounts of crypto incomes, when the Spanish Tax authority suspects these actions? They can open a full tax audit.During an audit, they'll examine your financial history in detail, including bank records, exchange transactions, wallets, and even foreign crypto holdings. If found guilty of tax fraud or intentional evasion, you may face criminal charges that may lead to prison sentences.
How to optimise your Crypto taxes legally
As a crypto investor, you obviously want to maximise your gains and optimise your taxes to pay as little as possible. While you are looking for ways to optimise your taxes, there is no better option than doing it legally in order to avoid issues that will lead you into trouble with the Tax Agency. Here are a number of ways to legally optimise your crypto taxes.
- Hold long-term where possible
In many countries, holding crypto for over a year can lead to reduced tax rates or even tax exemptions (like in Germany or Portugal). While Spain doesn’t offer full exemptions, delaying sales can help you control when gains are realized, potentially pushing them into a lower tax year.
Assuming you made a €10,000 profit in selling Bitcoin. If you decide to sell it this year, your total income is already high. You will be taxed at 26% or even at 28%. But if you wait until next year when your gain or total income may fall into a lower tax bracket, say 19%, saving you hundreds of euros. Timing matters!
- Use Tax-Loss Harvesting
If you’ve had a bad year with crypto and ended up selling at a loss, you can use these losses to offset the taxes. In Spain, those losses can actually help you pay less tax. You can subtract your crypto losses from your crypto profits, which means you’ll only pay tax on the difference.
In the case of heavy losses, the losses can be carried over to the next year and this process can be repeated up to four years.
- Keep Detailed and Organized Records
Good record-keeping is as important. If the tax office ever asks questions, having everything clearly documented will save you time, stress, and possibly money.
Here’s what you should keep track of for every crypto transaction:
- Date of the transaction
- Type of transaction (buy, sell, trade, staking reward, etc.)
- Crypto asset involved (BTC, ETH, SOL)
- Amount of crypto bought or sold
- Value in euros at the time of the transaction
- Fees paid
- Wallet addresses and platforms used
Using crypto tax software or spreadsheets for easy record keeping.
- Report Everything Transparently
Make sure to declare all your crypto income, no matter how you earned it. Whether through staking rewards, mining, airdrops, or getting paid in crypto for freelance work or services.Spain takes crypto tax filing seriously, especially when it comes to foreign-held assets.Declare all your crypto accurately.
- Seek Professional Advice
Crypto tax rules can be complicated and they’re always changing. A brilliant idea will be to seek the services of a certified tax advisor who understands both Spanish law and how crypto works.
Even if you use crypto tax software, having a professional review your situation gives you peace of mind. Think of it as a smart move by a smart investor to protect his investments and avoid surprises from the tax office especially for long term holders.
Conclusion
Understanding crypto taxes in Spain and abroad can be challenging, especially as the rules continue to change alongside the evolving world of crypto. Knowing which activities are taxable, how to calculate your gains, and which forms to submit can help you stay compliant and even save money.
Also staying informed and up to date on what is new on crypto taxes will protect you from penalties and keep your crypto journey on the right track.
Disclaimer: The content provided in this article is for educational and informational purposes only and should not be considered financial or investment advice. Interacting with blockchain, crypto assets, and Web3 applications involves risks, including the potential loss of funds. Venga encourages readers to conduct thorough research and understand the risks before engaging with any crypto assets or blockchain technologies. For more details, please refer to our terms of service.