Tax Residency in Spain: Conflicts and Their Resolution
How does the Spanish Tax Agency deal with the use of cryptocurrencies for tax fraud?
Complete guide to the taxation of cryptocurrencies in Spain for 2025
Cryptocurrency taxation in Spain in 2025 is a crucial topic as the Tax Agency intensifies its control over crypto assets. Understanding how cryptocurrencies are taxed and complying with regulations is essential to avoid sanctions. At Resitax, tax advisors who are experts in cryptocurrencies, we explain everything you need to know to manage your taxes correctly.
Cryptocurrency Taxation in Spain: Applicable Taxes and Regulations
Personal Income Tax (IRPF):
- Capital gains and losses: The purchase, sale or exchange of cryptocurrencies generates capital gains or losses that must be included in the tax return. The gain or loss is calculated as the difference between the transfer value and the acquisition value of the cryptocurrency. These gains are taxed in the taxable savings base at a rate of 19% to 30%.
- Mining cryptocurrencies: Income from mining cryptocurrencies is declared in the section on Income from Economic Activities…. The expenses necessary for the discovery of cryptocurrencies, such as electricity, are deductible.
- Staking: Cryptocurrencies obtained by staking are classified as income from movable capital.
- Exchange between cryptocurrencies: The exchange between different cryptocurrencies also generates a capital gain or loss.
- Use as a means of payment: When using cryptocurrencies to purchase goods or services, a capital gain or loss is generated, calculated by the difference between the acquisition value and the value of the cryptocurrency at the time of payment.
- Fees and commissions: The fees and commissions paid in the purchase and sale of cryptocurrencies are included in the calculation of capital gains ….
Wealth Tax (WT):
Cryptocurrencies must be declared in the Wealth Tax along with the rest of the assets and rights ….
They are valued at market price as of December 31 of each year ….
If the total value of the assets exceeds the exempt limit established by each Autonomous Community, the value of the cryptocurrencies must be declared.
Corporate Income Tax (CIT):
Companies that carry out activities with cryptocurrencies, such as intermediation or buying and selling, will pay Corporate Income Tax.
The profits obtained from the buying and selling or mining of cryptocurrencies are included in the tax base.
Value Added Tax (VAT):
Cryptocurrency mining operations are considered not subject to VAT, as there is no end customer in this activity.
The sale and purchase of cryptocurrencies by business owners or professionals is subject to and exempt from VAT.
The acquisition of goods or services in exchange for cryptocurrencies is considered a transaction subject to and exempt from VAT.
Information Obligations: Form 720 and Other Declarations
Form 720:
Taxpayers must report virtual currencies located abroad on form 720 if the value exceeds 50,000 euros.
This obligation includes cryptocurrencies held in custody by entities that offer private cryptographic key safeguarding services.
Other important considerations for cryptocurrency taxation:
- Intermediaries: Intermediaries and exchange offices for cryptocurrencies must register and report suspicious transactions.
- Fines: There are fines of up to 5,000 euros for each piece of undeclared or incorrectly declared data on cryptocurrencies, with a minimum of 10,000 euros.
- Income tax return: If total income (including cryptocurrency gains) exceeds 1,000 euros, there is an obligation to file an income tax return. In the 2024 income tax return, there is a specific box for declaring cryptocurrencies.
- Double Taxation Agreements: Foreign gains from the sale of cryptocurrencies by Spanish residents will not be taxed at source.
- Economic activities: If the main activity of a company is the purchase and sale of cryptocurrencies, these will be considered as stock.
- Risks: There are warnings about the risks of cryptocurrency volatility and the possibility of fraud.
In summary, the holding, buying, selling, exchanging and use of cryptocurrencies are subject to taxation in Spain, with various declaration obligations and possible sanctions for non-compliance. It is important to take into account the valuation of cryptocurrencies at market price and the possible capital gains or losses generated in each operation.
At Resitax, we are expert tax advisors in Mallorca and one of our specializations is cryptocurrencies, we help you to correctly manage your tax situation. If you need advice on the taxation of crypto assets, tax returns or the application of Double Taxation Agreements, contact our team and guarantee correct tax planning.