Does everything to do with crypto and the Treasury sound like Greek to you? You are not alone. With the technological revolution in full swing, more and more people and companies are betting on investing or developing businesses related to cryptocurrencies. But, be careful, because the tax side is not a game: both residents and non-residents in Spain must pay attention to avoid getting into trouble.
Why is it so important to declare cryptocurrencies?
Cryptocurrencies are digital assets that can generate profits, losses, economic returns and, in many cases, are considered to be subject to taxation. The Tax Agency, the Bank of Spain and the CNMV have been warning for some time that they are scrutinizing everything related to crypto operations. Failure to declare can be costly, so it is better to be forewarned.
Tax residents in Spain: Personal Income Tax and more
- Capital gains on transfer of assets
- They occur when you sell (or exchange) cryptocurrencies and make a profit between the sale price and the acquisition price.
- Example: you bought BTC at 20 000€ and you sell it at 30 000€. That difference is taxed as a capital gain in the savings base.
- Income from movable capital
- If, for example, you receive interest or contract any financial product based on cryptocurrencies (that pays you coupons or yields), these are classified as income from movable capital.
- They are included in the savings base, just like the interest on a bank deposit.
- Gains or losses without transmission
- They arise from transactions in which you have not sold the asset directly, but there is an increase or decrease in your equity.
- Example: if you receive cryptocurrencies as a reward from a hard fork or airdrop, it can be considered a non-transmission gain.
- Economic activity
- If you engage in mining or other crypto activities as a business (e.g., node management, staking on a business basis, regular trading), the Inland Revenue may classify it as an economic activity.
- You must register in the census of entrepreneurs, keep accounts and pay income tax in direct estimation or in the corresponding regime, in addition to the payment of self-employment fees in case of personal dedication.
- Keeping track of everything:
Keeping a detailed record of each transaction is what will save you in case of a request. - Be aware of new reporting forms:
The obligation to report cryptoassets abroad is currently regulated; failure to provide the correct data can lead to huge penalties.
Non-residents: IRNR and double taxation agreements
- Non-Resident Income Tax (IRNR):
If your earnings or transactions are linked to Spain (e.g., an exchange based here), you may be subject to filing in Spanish territory. - Double taxation agreements:
If you are also taxed in another country, you may be able to avoid paying twice for the same thing. Each case is different.
What happens if you do not declare?
Penalties can be very high and vary depending on the infraction. From “manageable” fines to much higher surcharges, the Tax Agency is not for jokes. In addition, with digitalization and new regulations such as the MiCA Regulation at the European level, there will be more and more transparency and cross-checking of data.
Recommendations for a smooth rental campaign
- Keep track of all your transactions: Use apps or keep an Excel with dates, costs and profits of each transaction.
- Know your real tax residence: Living in Spain for more than 183 days a year is not the same as living in another country.
- Be sure to stay informed: Regulations change fast and affect activities such as staking, mining and, of course, trading.
- Consult with professionals: No matter how handy you are with technology, the fiscal part is complex. An expert can save you from future surprises.
Advixy: your ally in the cryptocurrency era
At Advixy we are a consultancy that lives and breathes digital transformation. We know the crypto environment and the regulations that are constantly moving in Spain, Europe and the world. Beyond mere disclosure, we help you structure your crypto investments safely so that you meet all your obligations and sleep peacefully.
The 2025 income tax campaign is approaching and, whether you are a tax resident in Spain or not, declare your cryptoassets correctly and keep everything in order to avoid fines and headaches. In Advixy we give you a hand so that bureaucracy does not become an obstacle for your projects.
Do you have doubts about how to declare your cryptocurrencies?
Contact us and get the peace of mind you need to get things right from the start, we are waiting for you!
