Declaring cryptocurrency in your tax return has become a hot topic—how to do it, when to do it, and what rules apply. As tax regulations evolve, understanding your obligations is crucial to avoid penalties. This guide breaks down everything you need to know about cryptocurrency taxation, including key terms, tax brackets, and reporting forms.
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Key Takeaways
- Cryptocurrency transactions (sales, swaps, staking) may trigger taxable events.
- Spain’s tax authority (Hacienda) treats crypto similarly to stocks, with specific rules for losses and gains.
- Two tax bases apply: savings base (capital gains) and general base (income-like activities).
- Forms like Modelo 720 and Modelo 721 have distinct reporting requirements.
Cryptocurrency Tax Basics
1. Taxable Events
You only owe taxes when you realize gains or income from crypto, such as:
– Selling crypto for fiat (euros) or other assets.
– Swapping one cryptocurrency for another.
– Earning interest via staking, lending, or yield farming.
– Receiving crypto as payment (e.g., mining rewards or airdrops).
⚠️ Important: Buying and holding crypto is not taxable.
2. Tax Forms and Boxes
- Box 1800 (IRPF): Report capital gains/losses from crypto sales/swaps.
- Box 0027: Declare staking/yielding income (treated as capital mobility earnings).
- Box 0304: Include airdrops/gifts (taxed as miscellaneous income).
Taxation by Activity
🟢 Savings Base (Capital Gains)
Applies to:
– Sales/swaps of crypto (treated like stock trades).
– Staking/yielding rewards (classified as passive income).
Tax Brackets (2024 Rates):
| Gains (€) | Tax Rate |
|---|---|
| 0–6,000 | 19% |
| 6,001–50,000 | 21% |
| 50,001–200,000 | 23% |
| 200,001–300,000 | 27% |
| 300,001+ | 28% |
Example: Selling Bitcoin for a €10,000 profit incurs a 19% tax on the first €6,000 and 21% on the remaining €4,000.
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🔵 General Base (Income-like Activities)
Applies to:
– Mining crypto (treated as self-employment income).
– Airdrops/gifts (taxed as windfalls).
Tax Brackets (2024 Rates):
| Income (€) | Tax Rate |
|---|---|
| 0–12,450 | 19% |
| 12,450–20,200 | 24% |
| 20,201–35,200 | 30% |
| 35,200–60,000 | 37% |
| 60,001–300,000 | 45% |
| 300,001+ | 47% |
Note: Mining income below €1,000/year is tax-exempt if it’s your sole income.
Special Rules and Forms
🚫 Loss Compensation Limits
- Losses from crypto sales can offset gains only if you don’t rebuy the same asset within 2 months.
- Unused losses carry forward for 4 years.
📑 Modelo 721 (Foreign Crypto Holdings)
Required if you hold >€50,000 in foreign-based exchanges (e.g., Binance, Coinbase).
Frequently Asked Questions (FAQs)
1. Do I pay taxes if I transfer crypto between wallets?
No—transfers to self-owned wallets aren’t taxable. Only disposals (sales/swaps) trigger taxes.
2. How is crypto taxed if I hold it long-term?
Spain has no “long-term” rate—all gains are taxed under the savings base brackets.
3. Are DeFi rewards taxable?
Yes. Liquidity mining, yield farming, and similar rewards are taxed as income or capital gains.
4. What if I forgot to declare crypto in past years?
File a supplementary declaration to avoid penalties (fines range from 50%–150% of owed tax).
5. Can I deduct crypto trading fees?
Yes—transaction fees reduce your taxable gain (e.g., fee paid when selling Ethereum).
6. Is NFT trading taxed like crypto?
Generally yes, but unique rules may apply depending on the NFT’s use case.
Final Tips
- Track all transactions: Use tools like CoinTracker or Koinly to simplify reporting.
- Consult a professional: Complex cases (e.g., mining businesses) may need expert advice.
🚀 Stay compliant and maximize returns with informed crypto tax planning!