Are there taxes on cryptocurrencies in Spain?

Starting in 2025, Spain will apply certain taxes on transactions with cryptocurrencies. This aligns with its broader strategy to integrate digital assets into its financial system. The tax framework mainly focuses on capital gains obtained from cryptoassets and the income generated from activities related to cryptocurrencies. Understanding the tax implications in Spain is crucial for investors, traders, and everyday users interested in cryptocurrencies.

The importance of understanding the taxation of cryptoassets in Spain

The taxation of cryptocurrencies in Spain is a relevant topic for both national and international investors. As the crypto market continues to evolve, the regulatory environment also changes, affecting investment strategies and financial planning. For investors and traders, understanding these taxes is essential to ensure compliance with Spanish laws, thereby avoiding potential legal issues and penalties. For everyday users, it helps manage their personal finances more effectively when dealing with digital assets.

Real-world examples and updated information for 2025

Capital Gains Tax on cryptoassets

In Spain, the profits obtained from the sale of cryptoassets are subject to capital gains tax. This tax applies when the assets are held for less than a year and the gains exceed a certain threshold, which is adjusted annually according to inflation. For example, in 2025, the threshold for tax-exempt capital gains from cryptoassets has been set at 7,000 euros. Gains exceeding this amount are subject to progressive tax rates of up to 5 brackets, depending on the individual's total income level.

Income tax on mining and staking

Cryptocurrency mining and staking activities are considered income-generating activities in Spain. The income obtained from these sources is subject to income tax, calculated on the market value of the coins mined or received from staking at the time of receipt. The tax rates for these activities are consistent with the general income tax rates in Spain, which range from 19% to 47%.

VAT Exemption

Starting in 2025, the buying and selling of cryptoassets is exempt from Value Added Tax (VAT) in Spain. This exemption has been implemented to promote the use of digital coins and simplify the tax regime for transactions with cryptoassets. However, services related to cryptoasset transactions, such as intermediary services, may be subject to VAT.

Practical application: Reports and compliance

For effective tax compliance, Spanish citizens operating with cryptocurrencies must maintain detailed records of their transactions, including dates, amounts in euros, and the market value of the cryptoassets at the time of the transaction. These records are vital for accurately reporting gains or income on tax returns. The Spanish tax authority is also enhancing its monitoring capabilities to track and audit cryptocurrency transactions more effectively.

Data and statistics

According to the latest reports from the National Institute of Statistics of Spain, the number of cryptocurrency users in the country has increased by 35% from 2023 to 2025, making it one of the fastest-growing markets in the region. This increase in adoption has also raised the volume of taxable cryptocurrency transactions, highlighting the importance of understanding and complying with tax regulations.

Conclusions and key points

In summary, Spain's approach to the taxation of cryptoassets includes a capital gains tax for short-term gains, income tax for mining and staking, and an exemption from VAT on the purchase and sale of digital coins. For investors and users in the Spanish crypto market, it is crucial to stay informed about these tax regulations to ensure compliance and optimize financial planning. Keeping detailed records of transactions and understanding the applicable tax rates are critical steps to achieving this goal.

Key points include the importance of understanding the specific tax implications for different types of crypto income, the VAT exemption for cryptocurrencies, and the need for diligent record-keeping for accurate tax reporting and compliance in Spain.