Guide to Crypto Taxes in Spain
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Recently there has been an “exponential” rise in crypto tax audits in Spain. Currently, Spain requires investors with foreign crypto in foreign exchanges to declare their holdings. Additionally, Spanish crypto exchanges must report user information to the tax authority. [1]
However, beginning December 31, 2022, Spain may require traders holding more than 50,000 EUR in crypto to disclose the details of all their holdings, regardless of where they're held or whether they've resulted in earnings.[2]
In Spain, individual residents pay the PIT (personal income tax). The PIT is divided into two categories: general taxable income and savings taxable income. Capital gains and interest are taxed as savings taxable income, while most other income (wages, payments) are taxed as general taxable income.[3]
Spain has a complex hierarchy of taxes. The national tax authority outlines rules, but autonomous communities have the option of modifying national rules about tax exempt minimums, tax rates, and tax deductions to the base.[4] In this guide, we’re using the national rules, but the specifics may be different for you, depending on which region of Spain you live in.
In Spain, crypto earnings could be savings taxable income or general income, depending on how it is earned. It may also be subject to the wealth tax or inheritance and donation tax.
Taxes on capital gains
Acquiring crypto with fiat is not a taxable crypto event, and purchasing/transferring crypto is not subject to the value added tax (VAT).
When crypto is earned from selling, trading, swapping, or otherwise disposing of an asset in exchange for crypto or fiat, it is considered a capital gain (savings taxable income). Capital gains are taxed at a progressive rate that ranges from 19% to 26%.
| Savings taxable income | Tax rates |
|---|---|
| Up to 6,000 EUR | 19% |
| >6,000 EUR ≤ 50,000 EUR | 21% |
| >50,000 EUR ≤ 200,000 EUR | 23% |
| Over 200,000 EUR | 26% |
Capital gains accounting method
In Spain, FIFO (first-in-first-out) accounting is used for inventory valuation, and thus also for crypto capital gains. In Spanish, this type of specific ID accounting is known as PEPS (primero en entrar, primero en salir).
Taxes on crypto mining and direct payments
When crypto is mined, or crypto is received as payment for a good or service, it is considered general taxable income and subject to a higher tax rate than capital gains.
| General taxable income | Total tax rate (state + regional) |
|---|---|
| Up to 12,450 EUR | 19% |
| > 12,450 EUR ≤ 20,200 EUR | 24% |
| >20,200 EUR ≤ 35,200 EUR | 30% |
| >35,200 EUR ≤ 60,000 EUR | 37% |
| >60,000 EUR ≤ 300,000 EUR | 45% |
| Over 300,000 EUR | 47% |
Wealth taxes
If the total value of your assets is greater than 700,000 EUR, you will also be subject to a wealth tax. Crypto holdings are counted in this calculation of your net worth. You can get an allowance of up to 300,000 EUR for the value of your home.
| Tax base (EUR) | Fee (EUR) | Remaining taxable amount (EUR) | Tax rate |
|---|---|---|---|
| 0 | 0 | 167,129.45 | 0.2% |
| 167,129.45 | 334.26 | 167,123.43 | 0.3% |
| 334,252.88 | 835.63 | 334,246.87 | 0.5% |
| 668,499.75 | 2,506.86 | 668,499.76 | 0.9% |
| 1,336,999.51 | 8,523.36 | 1,336,999.50 | 1.3% |
| 2,673,999.01 | 25,904.35 | 2,673,999.02 | 1.7% |
| 5,347,998.03 | 71,362.33 | 5,347,998.03 | 2.1% |
| 10,695,996.06 | 183,670.29 | Onwards | 3.5% |
To calculate your wealth tax, you need to know the cumulative value of your taxable assets.
Spanish crypto tax calculation example
Let’s say your taxable net worth is 1.5 million EUR. You own a flat worth 450,00 EUR.
First, you can deduct your allowances from your total assets’ value. You can deduct 1,000,000 EUR because of your allowance and home.
You’re left with 500,000 EUR. Your first 167,129.45 EUR are only subject to a .2% wealth tax. So, in this bracket, you owe 334.26 EUR.
You have 332,870.55 EUR left that is subject to wealth tax. In the next bracket, you must pay a flat fee of 334.26 EUR, and then pay a .3% tax on the remainder. That leaves 167,123.43 EUR to be taxed at .03%. Including that fee, you owe 835.63 EUR.
Finally, you have 165,747.12 EUR left to be taxed in Bracket 3. There is a flat 835.63 EUR fee and you owe .5% on the rest of your income. This results in 824.56 EUR of taxes in this bracket.
Add the amount owed in each bracket together, and you find that you owe 1,994.45 EUR of wealth tax.
Reporting crypto taxes in Spain
Tax policy has changed frequently in Spain over the past decade. Since 2008, the wealth tax has been introduced, removed, and reintroduced. It's important to stay informed on tax policy developments so you can be sure you save enough to cover your tax liability.
Personal income taxes are reported on Modelo 100. Wealth tax, if applicable, is reported on Modelo 714. These forms are separate, but must be turned in on the same day and before the tax deadline of June 30.
The Modelo 720 Declaration - used to declare holdings abroad in excess of €50.000 - was previously believed to be applicable to cryptocurrency. However, the Agencia Tributaria has confirmed that taxpayers do not need to declare crypto holdings on the Modelo 720 Declaration, even if they amount to over €50.000 in value.
Learn more about crypto taxes in other countries in our Crypto Tax Guide.
To stay up to date on the latest, follow TokenTax on Twitter @tokentax.
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References
Last reviewed by Tynisa (Ty) Gaines,EA on May 3, 2023 · Sources
