Crypto currencies and taxation in Spain

The Spanish taxman gets his money's worth

Those who have invested in crypto currencies will probably have had a good 2020. The prices rose sharply in 2020 and 2021 is also a year where the prices remain fairly stable after what was a turbulent spring.

Anyone who has cashed in the profits will have to take account of them in their personal tax return. The Spanish tax authorities consider the profits as a form of investment return (similar to the profits, dividends, interest, etc. from investments such as shares, investment funds, derivatives, etc.).

If the profits have not been realised, i.e. you have not sold your crypto coins, they do not fall under returns achieved and you are exempt from the declaration. If the total value of your crypto portfolio is above the exemption limit of the wealth declaration, then you are obliged to file the wealth declaration and to report the total value that has been invested.