Cryptocurrencies can be defined as a digital exchangeable asset that uses cryptographic methods to secure its financial transactions, control the creation of new units and verify the transfer of assets.
They are considered, for tax purposes, as intangible assets, which are computed by units or fractions of units. Although they are not legal tender, they are used as a means of payment as they can be exchanged for other goods, including other virtual currencies.
In recent years, interest in investing in cryptocurrencies has grown as a result of a combination of technological, economic, social and cultural factors. It is a phenomenon that is constantly evolving, and the adoption of cryptocurrencies seems to be on an upward trend due to innovation in the sector and the growing interest in alternatives to the traditional financial system.
For this reason we believe it is important to understand the fiscal effects and obligations to which we are exposed when using and owning cryptocurrencies.
Written by Constanza PedrazziPersonalized services
- For individual investors (Income tax declaration, calculation of profits and losses, Wealth Tax)
- For traders (Fiscal optimisation)
1. When do I have to declare cryptocurrencies?
Deadline for declaring cryptocurrencies
The yield and holding of cryptocurrencies must be declared from April until June, by filing form 100 and form 714.
what is the threshold above which cryptocurrencies must be declared?
There is no minimum amount; you are always obliged to declare the result of your investments in cryptocurrencies.
Obligation to declare cryptocurrencies abroad
From the 1st of January until the 31st of March, all residents in Spain, both individuals and legal entities, are obliged to declare their holdings of cryptocurrencies abroad if the accumulated balance exceeds €50,000.
The declaration is made using Form 721 of the Informative Declaration on virtual currencies located abroad, which must include precise information on the cryptocurrencies held and be filed between January and March of the following year.
should cryptocurrency losses also be declared?
Losses obtained by holding cryptocurrencies are also declared for income tax purposes.
Check out our 2025 tax calendar so that you don't miss any deadlines.
2. How to declare cryptocurrencies in Spain
The result of the transactions carried out with cryptocurrencies must be declared for income tax (IRPF) and the holding of cryptocurrencies for Wealth Tax (IP).
Personal Income Tax (Impuesto a la renta de las personas físicas (IRPF))
Transactions made with virtual currencies will give rise to a capital gain or loss. This is generated by the difference between the price at which the cryptocurrency is acquired and the price at which it is sold or exchanged. Therefore, the result must be determined for each particular transaction by calculating the difference between the sale price in euros (unless this is lower than the market value) and the amount at which the said currency was acquired. Expenses and taxes directly related to these transactions may be considered.
All units of the same cryptocurrency are equal to each other, which means that they cannot be differentiated from each other. Therefore, when a sale is made of cryptocurrencies that have been purchased at different times and at different prices, the FIFO ("First In, First Out") rule is used. This means that, in order to calculate the result of the transaction, the first coins purchased are considered to be sold.
By means of example, if you have cryptocurrency type A according to the following table.
|
DATE |
UNITS |
VALUE |
TOTAL |
|
05/09/2022 |
5 |
€10,000.00 |
€50,000.00 |
|
15/11/2022 |
2 |
€12,500.00 |
€25,000.00 |
|
23/03/2023 |
3 |
€11,350.00 |
€34,050.00 |
And on the 25th of November 2023, 6 cryptocurrencies (A) are sold at a value of €14,250.00 each.
The total sales price would be €85,500 and for the calculation of the cost we must first consider the oldest units.
Meaning that we will have:
5x10.000€ = 50.000€
1x12.500€ = 12.500€
Total cost = 62.500€.
To calculate the capital gain the sum would be €85,500 - €62,500 obtaining, therefore, a gain of €23,000. From this capital gain we can deduct the expenses that are directly attributable to the transactions carried out.
As such, we have determined a capital gain that, according to the provisions of Law 35/2006, of the 28th of November, on Personal Income Tax (IRPF) (Ley 35/2006, de 28 de noviembre, del Impuesto sobre la Renta de las Personas Físicas (IRPF)), must be included in the income tax return.
Another issue to take into account is the moment at which we must impute this gain.
According to article 14 of the Personal Income Tax Law, this gain will occur at the moment in which the virtual coins are delivered, regardless of the moment in which the sale price is received.
In our example we can consider the sale to have been made in November 2023, so we must include this capital gain in our income tax liquidation for 2023.
It remains for us to determine what type of income constitutes the capital gains and losses derived from the transfer of virtual currencies.
According to article 46 of the Personal Income Tax Law, the amount of capital gains or losses derived from the transfer of virtual currencies constitutes savings income and must be included in the income tax return in the specific section for cryptocurrencies.
Since it is savings income, the following percentages will be applied.
- 19% for the first €6,000 of profits.
- 21% for profits between €6,000 and €50,000.
- 23% for profits between €50,000 and €200,000.
- 26% for profits between €200,000 and €300,000.
- 28% for profits over €300,000.
Wealth Tax (IMPUESTO SOBRE EL PATRIMONIO (IP))
Cryptocurrencies are considered intangible assets and are part of personal wealth. If the total assets exceeds the limits established by the regulations, cryptocurrencies must be included in the declaration of wealth.
How are cryptocurrencies declared WITH REGARD TO WEALTH TAX?
In case your total wealth, including cryptocurrencies, exceeds the established limits, you must file this form, including cryptocurrencies in the section "Other assets and rights of economic content" ("Otros bienes y derechos de contenido económico").
That is to say, in the Wealth Tax Form 714, cryptocurrencies are declared in the section of "Other assets and rights of economic content". There is no specific section in this form.
In order to calculate the value in euros of the cryptocurrencies to be included in Form 714 (IP), the price of these on the 31st of December will be taken. If no price is found, the acquisition value will be taken.
If the total value of your cryptocurrencies abroad exceeds 50,000 euros, file Form 721 between the 1st of January and the 31st of March of the year following the fiscal year to be declared.
If you need help with your tax returns, contact our team of tax advisors.
3. Fines for not declaring cryptocurrencies
Penalties for not declaring cryptocurrencies can be severe:
- Minimum fine of €500 plus a percentage of 0.5% to 2% of the
undeclaredvalue.
- For incomplete declaration: €100 per piece of undeclared data (minimum €1,500
)
- For non-declaration: €5,000 per piece of undeclared data (minimum €10,000
)
4. Legal and Regulatory Framework in Spain
There are several laws and regulations that seek to balance technological innovation with consumer protection and the integrity of the financial system, as well as to prevent money laundering and terrorist financing through the use of virtual currencies.
The main laws and relevant articles are detailed below:
- Law 10/2010, of the 28th of April: Prevention of money laundering and financing of terrorism. (Ley 10/2010, de 28 de abril: Prevención del blanqueo de capitales y de la financiación del terrorismo)
- Law 58/2003, of the 17th of December, General Tax Law: Basis of taxation in Spain. (Ley 58/2003, de 17 de diciembre, General Tributaria: Fundamento de la tributación en España)
- Law 35/2006, of the 28th of November, Personal Income Tax (IRPF). (Ley 35/2006, de 28 de noviembre, Impuesto sobre la Renta de las Personas Físicas (IRPF))
- Wealth Tax Law (Law 19/1991, of the 6th of June). (Ley del Impuesto sobre el Patrimonio (Ley 19/1991, de 6 de junio))
- Royal Decree-Law 9/2018, of the 3rd of August (Law on urgent measures for the adaptation of Spanish law to European Union regulations). (Real Decreto-ley 9/2018, de 3 de agosto (Ley de medidas urgentes para la adaptación del derecho español a la normativa de la Unión Europea))
- Law 11/2021, of the 9th of July, Measures for the protection and fight against tax fraud. (Ley 11/2021, de 9 de julio, Medidas de protección y lucha contra el fraude fiscal.)
- Order HFP/886/2023, which approves form 721 and establishes the conditions for its filing. (Orden HFP/886/2023, que aprueba el modelo 721 y establece las condiciones para su presentación.)
- Directive (EU) 2018/843, on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (fourth AML directive).
- MiCA (Markets in Crypto-Assets) Regulation.
5. What is the purpose of the cryptocurrency factual report?
- It facilitates the accurate calculation of capital gains and losses arising from cryptocurrency transactions.
- It helps to properly comply with tax obligations, providing the necessary information to complete tax returns, including Form 721 and Form 100.
- It serves as documentary support in the event of a possible tax inspection by the Tax Agency.
- It allows for a more effective control of cryptocurrency investments, facilitating financial decision making.
- It provides an easy way to track and summarise all transactions related to digital assets, including expenses, gains and losses.
- It helps to ensure that the correct amount of tax is being paid on cryptocurrency transactions.
- It simplifies the preparation and submission of a complete and accurate income statement related to cryptocurrencies.
6. What's new in cryptocurrencies for 2025
- More regulation and control over cryptocurrencies is expected from the Tax Agency.
- New forms may be introduced or existing ones may be modified to improve tax transparency in the field of cryptoassets.
You can check here for more tax news for 2025
Tax advice for cryptocurrencies
Given the complexity of the regulations, it is advisable to have a tax advisor specialised in cryptocurrencies. These experts can help you to optimise the declaration and avoid mistakes that could result in penalties.
