How to Report Crypto Income in Spain: Your 2024 Tax Guide

As cryptocurrency adoption grows in Spain, understanding how to report crypto income to the Spanish Tax Agency (Agencia Tributaria or Hacienda) is crucial. Failure to comply can lead to severe penalties. This comprehensive guide explains Spain’s crypto tax rules, walks you through the reporting process step-by-step, and answers common questions to help you stay compliant. Whether you’ve traded Bitcoin, earned staking rewards, or received NFT income, learn exactly how to declare your crypto earnings correctly.

Understanding Spain’s Crypto Tax Framework

In Spain, cryptocurrencies are treated as movable assets for tax purposes. This means:

• Crypto profits are taxed under Capital Gains Tax (19%-28% based on earnings)
• Frequent traders may qualify as professional investors, subject to Income Tax (19%-47%)
• All residents must declare worldwide crypto income, including foreign exchange transactions

The Agencia Tributaria actively monitors crypto activity through Form 720 (foreign asset declaration) and collaborates with exchanges for data sharing.

Types of Crypto Income Subject to Tax in Spain

You must report these common crypto-related activities:

1. Trading Profits: Selling crypto for fiat or swapping between cryptocurrencies
2. Staking & Mining Rewards: Treated as ordinary income at market value when received
3. Airdrops & Hard Forks: Taxable as miscellaneous income if they provide economic benefit
4. NFT Sales: Capital gains apply when selling non-fungible tokens
5. Crypto Payments: Income from goods/services received in crypto

Note: Buying crypto with EUR or holding long-term doesn’t trigger taxes.

Step-by-Step Guide to Reporting Crypto Income

1. Calculate Your Gains/Losses

Use FIFO (First-In-First-Out) method to determine cost basis. Track:

• Acquisition date and price
• Disposal date and value
• Transaction fees

2. Complete Tax Forms

• Form 100: Declare capital gains in Section G (Modelo 100)
• Form 720: Report foreign-held crypto exceeding €50,000 by March 31st

3. Submit Declarations

File electronically via the Agencia Tributaria website during tax season (April-June). Keep detailed records for 4 years.

Common Crypto Tax Mistakes to Avoid

• ❌ Forgetting to report crypto-to-crypto trades (e.g., ETH to SOL)
• ❌ Misclassifying staking income as non-taxable
• ❌ Omitting Form 720 for offshore exchange holdings
• ❌ Using incorrect acquisition dates for cost basis
• ❌ Failing to report losses (which can offset gains)

Penalties for Non-Compliance

The Agencia Tributaria imposes strict penalties:

• Late filing: 5%-20% of owed tax + interest
• Underreporting: 50%-150% of evaded tax
• Criminal charges for fraud exceeding €120,000

Voluntary disclosure programs may reduce penalties if errors are self-corrected.

Frequently Asked Questions (FAQ)

Do I need to report crypto if I didn’t cash out to euros?

Yes. Crypto-to-crypto trades (e.g., Bitcoin to Ethereum) are taxable events in Spain. You must calculate gains based on euro value at transaction time.

How is DeFi lending taxed?

Interest from crypto lending platforms is taxed as capital income at 19%-28%. Record the euro value when rewards are credited to your wallet.

What records should I keep?

Maintain:

1. All transaction histories from exchanges
2. Wallet addresses
3. Proof of purchases and sales
4. Staking/mining reward statements

Are there tax-free thresholds?

Spain has no specific crypto exemption. However, general capital gains allowance exempts the first €6,000 per year for taxpayers under 65.

Conclusion: Reporting crypto income in Spain requires meticulous record-keeping and understanding of Hacienda’s evolving regulations. By following this guide, using tax software for calculations, and consulting a gestor for complex cases, you can avoid penalties and ensure full compliance. Always verify rules with official Agencia Tributaria publications, as crypto tax policies may change.