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How cryptocurrencies are taxed in Spain

Meanwhile, cryptocurrencies are no longer just an investment object, but an alternative means of payment. Therefore, they are also part of the annual tax control plan for 2022, in order to exercise control over this type of operation.

The Ministry of Finance is already taking measures and collecting information from all entities involved in the purchase or sale of cryptocurrencies. In particular, from financial institutions, bureaux de change, payment gateways, entities linked to ATMs and companies that accept payments with these crypto-assets.

One of the many issues that concern ordinary citizens is knowing what data the tax authority can obtain; here it is important to know that you can of course see the data that the Ministry of Finance has on its taxpayers from the previous year. The levy deadlines for the 2021 Income and Wealth Campaign start on 6 April and end on 30 June. You may come across the following remark in your tax data: “According to the data available to the tax office, you appear to be the holder of a bank account that has maintained money flows with virtual currency operators”, so they indicate that they have certain indications and consequently should be included in the income tax return.

As for the declaration of transactions with cryptocurrencies, the Tax Directorate has already clarified how they should be treated depending on the type of transaction. Here is a summary:

– Capital gains and losses: are taxed in the savings basis, whose tax rates range from 19% to 26%. It is important that the taxpayer has the information in historical form to ensure traceability of the transactions carried out.

– Investment income: Interest or income generated by platforms to which cryptocurrencies have been sent will be reported.

– Profits and losses without transmission: This would be the case of the so-called “AirDrops”, where cryptocurrencies are obtained for free for promotional purposes. The General Revenue Authority has indicated that their acquisition constitutes a capital gain to be included in the general income tax base, unless it derives from the transfer of an asset.

In addition to IRPF taxation, taxpayers holding cryptocurrencies abroad are required to report them via tax form 720 if the amount exceeds €50,000.

If you have received cryptoassets by gift or inheritance, you must declare them for inheritance and gift tax in accordance with regional regulations.

It should be noted that all Spanish investors holding investments with banks or financial brokers abroad are required to file an annual D-6 information return, which must be filed by 31 January of the year following the year to which the return relates; although it is not mandatory to include cryptocurrencies in this return, it is expected that they will be included in the near future.

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