The rapid growth of the cryptocurrency market has prompted the Spanish Tax Agency (Agencia Tributaria) to significantly tighten the regulation and oversight of crypto-assets. In particular, in 2025 the authority has further reinforced its requirements regarding the declaration of cryptocurrencies in the income tax return, while also increasing penalties for taxpayers who fail to properly report their transactions.
The tax treatment of Bitcoin and other cryptocurrencies in Spain is subject to specific rules that investors must understand and comply with to avoid legal and financial risks. In this article, we explain how cryptocurrencies are taxed in Spain, what changes have come into force in 2025, and what measures crypto investors should take to comply with their tax obligations.
How must cryptocurrencies be declared in Spain?
Crypto-assets are treated for tax purposes similarly to other financial assets. They must be included in the annual income tax return (Declaración de la Renta) and are subject to different tax categories depending on the type of transaction:
Capital gains and losses:
Profits from the purchase and sale of cryptocurrencies must be declared as capital gains (ganancias y pérdidas patrimoniales).
Gains arise when the selling price exceeds the purchase price, while losses can be used for tax optimization.
Income from staking and crypto yields:
Returns from staking, lending, or other passive income are considered investment income (rendimientos del capital mobiliario) and are subject to income tax.
Cryptocurrencies on foreign platforms:
Taxpayers holding crypto-assets worth more than €50,000 on foreign exchanges or wallets must declare them using Form 721.
New developments in 2025:
The tax authorities have significantly expanded control over foreign wallets. Taxpayers who fail to properly report their crypto-assets face higher penalties.
Which taxes apply to cryptocurrencies in Spain?
Depending on the type of transaction and the taxpayer’s fiscal status, different taxes apply to cryptocurrencies.
Income Tax (IRPF): Capital Gains and Losses
Sale of cryptocurrencies: Profits from the sale of cryptocurrencies are subject to capital gains tax (Impuesto sobre la Renta de las Personas Físicas – IRPF).
The tax is levied on a progressive scale:
19% on gains up to €6,000
21% on gains between €6,000 and €50,000
23% on gains between €50,000 and €200,000
26% on gains above €200,000
Exchange of cryptocurrencies: Swapping one cryptocurrency for another (e.g., BTC for ETH) is considered a taxable transaction.
Wealth Tax (Impuesto sobre el Patrimonio)
Taxpayers with total assets exceeding €700,000, including cryptocurrencies, must declare them in the annual wealth tax return.
Some autonomous communities provide tax benefits or exemptions.
VAT (IVA) and Corporate Taxation
Crypto transactions are generally exempt from VAT (IVA) as they are treated as financial services.
Companies that accept cryptocurrencies as payment must convert them into euros and adjust their accounting accordingly.
Form 721 and new reporting obligations for foreign crypto wallets
Since 2024, taxpayers in Spain are required to file Form 721 if they hold crypto-assets worth more than €50,000 on foreign exchanges or wallets.
Key points:
Reporting obligation: Form 721 must be submitted by March 31 of the following year.
Penalties for non-compliance:
€5,000 fine per unreported data entry
Minimum fine of €10,000 for failure to file
The Spanish Tax Agency increasingly relies on international monitoring measures and data exchange with crypto platforms to track down undeclared crypto-assets.
Tax optimization strategies for cryptocurrency investors
With proactive tax planning, investors can significantly reduce their tax burden. Recommended strategies include:
Offsetting losses against gains in the income tax return (Declaración de la Renta) to lower taxable income.
Declaring gains in years with lower tax rates or available deductions.
Using corporate structures to achieve tax advantages (only under certain conditions).
Seeking specialized tax advice to avoid misinterpretations or costly penalties.
Special note: The Spanish Tax Agency increasingly classifies cryptocurrencies as taxable assets. It is therefore advisable to properly document all transactions and work with an expert.
Conclusion: How can we support you?
Given the growing regulation and strict reporting obligations for cryptocurrencies, professional tax and legal advice is essential.
If you trade with Bitcoin or other cryptocurrencies, Dr. Frühbeck Abogados can help you meet your tax obligations and optimize the tax impact of your investments.
Our services for crypto investors include:
Review of your tax situation and individual obligations.
Assistance with the preparation and filing of tax returns (IRPF, Form 721, Wealth Tax).
Tax strategies to optimize your crypto investments.
Legal advice for the compliant execution of crypto transactions in Spain.
Contact us for personalized advice – we will be happy to assist you.