How to Report DeFi Yield in Spain: Your Complete 2024 Tax Guide

Understanding DeFi Yield Taxation in Spain

Decentralized Finance (DeFi) has revolutionized earning opportunities through yield farming, staking, and liquidity mining. In Spain, these crypto gains aren’t tax-free. The Spanish Tax Agency (Agencia Tributaria) treats DeFi yields as taxable income, requiring precise reporting. Failure to comply can trigger audits, penalties of 50-150% of unpaid tax, plus interest. This guide clarifies Spain’s complex crypto tax landscape, helping you accurately report DeFi earnings while avoiding costly mistakes.

Spanish Tax Rules for DeFi Earnings Explained

Spain categorizes DeFi yields based on activity type:

• Staking/Lending Rewards: Taxed as ordinary income at 19%-47% (scale rates) upon receipt
• Liquidity Pool Earnings: Rewards are taxable income; impermanent loss/gain calculations apply when exiting pools
• Airdrops & Forks: Taxable as miscellaneous income at flat 19% if they have market value

All values must be converted to euros using the Bank of Spain’s exchange rate at transaction time. Record-keeping is mandatory – Spanish law requires 5 years of crypto transaction history.

Step-by-Step: Reporting DeFi Yield on Spanish Tax Returns

1. Track Every Transaction: Use tools like Koinly or CoinTracking to log yield dates, amounts, and EUR values
2. Categorize Earnings: Separate staking rewards (Box 0026) from liquidity mining (Box 0027) on Form 100
3. Calculate Taxable Amount: For staking, tax the full EUR value at receipt. For LP exits, compute capital gains/losses
4. File Modelo 100: Declare earnings in Section 2 (Rendimientos del Capital Mobiliario) during annual income tax filing (April-June)
5. Pay By Deadline: Settle liabilities by June 30 to avoid 5% late payment surcharge

Essential Tools for Spanish DeFi Tax Compliance

• Tax Software: Koinly (Spain-specific reports), CoinTracking (advanced DeFi support)
• Exchange Rate Sources: Bank of Spain historical EUR rates or CryptoTaxAPI
• Record Templates: Agencia Tributaria’s Modelo 720 for foreign holdings > €50,000
• Wallet Trackers: Zerion or Zapper for cross-platform yield monitoring

Real-World Reporting Scenarios

Case 1: Staking MATIC
Juan earns 50 MATIC monthly. At €0.75/MATIC receipt value, he declares €450 annually (50 MATIC x 12 x €0.75) as ordinary income.

Case 2: Uniswap LP Rewards
Maria provides ETH/DAI liquidity, earning 0.1 ETH. She reports €180 (0.1 ETH x €1,800) as income. When exiting the pool, she calculates capital gains based on original deposit value vs. withdrawal value.

Frequently Asked Questions (FAQ)

Q: Is DeFi yield taxable if I reinvest it automatically?
A: Yes. Spanish tax applies at receipt, regardless of reinvestment.

Q: How are stablecoin yields taxed?
A: Identically to volatile coins – as ordinary income based on EUR value when earned.

Q: Do I report if I earned under €1,000?
A: Yes. Spain has no minimum threshold for crypto income reporting.

Q: Can I deduct gas fees?
A: Transaction fees directly related to earning yield are deductible from taxable income.

Q: What if I use non-KYC platforms?
A: You’re still legally required to report. The Agencia Tributaria tracks crypto via SII (Instant Information System).

Disclaimer: This guide outlines general principles. Crypto regulations evolve – consult a gestor or tax advisor specializing in Spanish crypto law for personalized advice. Last updated: July 2024.