The rise of non-fungible tokens has brought new opportunities for creators and investors in Spain. From digital art to in-game items, NFTs have become a trendy way to trade and showcase digital ownership. Yet with this growing interest comes an important question: how are NFTs taxed in Spain?
Unlike traditional cryptocurrencies, NFTs present unique challenges because they are tied to digital assets and involve both direct and indirect taxation. The Agencia Tributaria has issued guidance, confirming that NFTs can fall under income tax, corporate tax, and even VAT, depending on the type of transaction.
This means individuals, businesses, and collectors must understand their tax responsibilities to avoid costly mistakes. Therefore, in this guide, we break down the complete NFT taxation rules in Spain.
How Are NFTs Taxed in Spain?
In Spain, NFTs are not treated as physical goods but as electronically supplied services. This classification comes from the fact that NFTs grant rights over a digital file rather than ownership of a tangible item. The Spanish Tax Agency clarified that the sale of an NFT does not involve the transfer of a physical asset but instead a digital service.
This distinction has significant tax consequences. It means that NFT transactions fall within the scope of VAT rather than being treated under the reduced rates usually applied to art sales. It also places NFT gains and losses in line with the treatment of cryptocurrencies, where profits are calculated as capital gains or income depending on the nature of the transaction.
Also Read: Crypto Taxes In Spain: The Ultimate Guide
Applicable Taxes on NFTs in Spain
NFT transactions can trigger different types of taxes depending on how they are created, sold, or transferred. The Spanish tax system applies both direct and indirect taxes to NFTs, which means individuals, businesses, and collectors must evaluate each activity carefully to determine their obligations.
Income Tax
For individuals, NFTs can fall under general income tax if created or sold in the course of business activity. If sold outside business activity, gains are taxed as capital gains under the savings income brackets. Rates range from 19% to 30% depending on the size of the profit.
Corporate Tax
For companies, costs associated with creating NFTs are included in the tax basis. Profits from sales are taxed under Corporate Income Tax. This ensures that businesses dealing in NFTs declare both their costs and gains in line with accounting and tax rules.
Value Added Tax (VAT)
NFTs are classified as electronically supplied services. As such, they are subject to VAT at the standard rate of 21% when sold in Spain. Determining whether VAT applies depends on the location and status of the buyer, making accurate records and geolocation important for compliance.
Transfer Tax
When the seller is not a business or professional entity, NFT sales may fall under Transfer Tax instead of VAT. The applicable rate varies by region, such as 4% in Madrid. This distinction highlights the importance of correctly identifying the status of the transferor.
Gift and Inheritance Tax
NFTs transferred without payment, such as gifts or inherited tokens, are subject to Gift and Inheritance Tax. Rates vary by region and can range from 7% to over 30%. The tax is calculated based on the market value of the NFT at the time of the transfer.
Taxation of NFTs for Individuals
NFT transactions carried out by individuals in Spain are taxed differently depending on whether they are created, sold, exchanged, or gifted. The treatment depends largely on whether the activity is considered a business or a private transaction. Understanding these rules is essential to avoid penalties and ensure compliance.
NFT Creation as a Business Activity
General Income Tax
When NFTs are created as part of a business activity, any income is taxed under the general income tax rules. Rates vary by region and can reach between 45% and 54%. Individuals can deduct legitimate expenses such as property depreciation and digital platform costs, which helps reduce their overall taxable income.
NFT Creation Outside Business Activity
Savings Income Tax
If the creation of NFTs does not take place within a business framework, there is no immediate tax at the time of creation. Instead, tax applies when the NFTs are sold. These profits are treated as capital gains and taxed under savings income tax rules, with rates ranging from 19% to 30%.
Sale and Exchange of NFTs
Savings Income Tax
The sale of NFTs by individuals is treated as a capital gain under Savings Income Tax (SIT). When NFTs are exchanged for other tokens or cryptocurrencies, these exchanges are also considered taxable events. No tax deferral is permitted, meaning individuals must declare gains as soon as the exchange occurs.
Gifted NFTs and In-Game Rewards
General Income Tax
NFTs received as gifts or as in-game rewards are classified as general income. They fall under gift taxes at progressive rates that range from 45% to 54% depending on the region of residence. This applies even when the recipient did not actively purchase or create the NFT.
Taxation of NFTs for Corporates
For companies, the taxation of NFTs in Spain follows clear rules under Corporate Income Tax (CIT). The way NFTs are created, sold, or exchanged determines how profits and costs are calculated and taxed. Below are the main aspects explained.
Creation and Sale of NFTs
Corporate Income Tax
When a corporate entity creates NFTs, the costs of creation, such as platform expenses, labour, and associated overheads, form part of the tax basis of the asset. Upon selling the NFT, profits are taxed under Corporate Income Tax. This ensures that only the net gain, after deducting recognised costs, is liable for taxation.
Exchanges and Transfers
Corporate Income Tax
Corporates that exchange NFTs for cryptocurrencies or other NFTs face taxation under Corporate Income Tax. Spain applies both accounting principles and mark-to-market rules to determine the taxable amount. Each exchange is treated as a taxable event, meaning businesses must declare gains or losses from the transaction in their corporate filings.
VAT Rules for NFT Transactions in Spain
NFT transactions in Spain fall under specific rules that determine how sales are categorised and where tax applies. The classification of NFTs as digital services rather than physical goods plays a key role in shaping their treatment.
NFTs as Electronically Supplied Services
NFTs are now defined as electronically supplied services because they provide ownership rights over a digital asset instead of a tangible good. This classification means they are taxed at the standard rate of 21 per cent. Unlike traditional artwork, NFTs do not qualify for the reduced tax rate applied to physical art.
Determining Place of Supply
The tax treatment of an NFT sale depends on where the buyer is based:
- If the buyer is a business, the tax applies in the country where the business is established.
- If the buyer is an individual consumer, the tax applies in the country where they reside.
- If the buyer is outside the EU, the sale usually falls outside Spanish tax rules, except in cases covered by use and enjoyment provisions.
Transfer Tax on Non-Business Sellers
When NFTs are sold by an individual who is not acting in a professional capacity, the transaction may instead fall under Transfer Tax. The exact rates vary depending on the Spanish region, for example, 4 per cent in Madrid. This rule ensures NFT sales outside business activity are still subject to taxation.
How To Report NFTs on Taxes in Spain?
NFTs in Spain are subject to specific reporting rules that determine how they are disclosed to the tax authorities. Investors must carefully track their transactions and ensure proper reporting to remain compliant.
General Reporting
NFTs that generate gains or losses must be declared in the annual income tax return. In addition, holdings of NFTs are also considered when calculating Wealth Tax if the total value of assets exceeds regional thresholds. This ensures that NFTs are treated consistently with other forms of digital or financial wealth.
Form 720 and 721
Currently, NFTs do not fall within the scope of Form 721, which is limited to cryptocurrencies. Their inclusion under Form 720, which applies to assets held abroad, is still uncertain. The Spanish Tax Agency is expected to provide clarification in the future, leaving current reporting rules somewhat ambiguous for NFT holders.
Record-Keeping Requirements
Investors are required to maintain accurate records of their NFT activity. This includes the purchase cost, sale price, dates, and counterparties involved in each transaction. Proper documentation is essential, not only for annual reporting but also in case of audits or additional information requests from the Agencia Tributaria.
How Can KoinX Help With NFT Taxation In Spain?
Dealing with NFT taxation in Spain can feel confusing, especially when rules differ for creation, sales, exchanges, and reporting. Missing details or misreporting can lead to penalties. This is where KoinX becomes the trusted solution for NFT investors. KoinX is a crypto tax platform that helps Spanish investors manage their NFT and crypto tax obligations with ease. Here’s what it offers:
Automated NFT Transaction Tracking
KoinX automatically tracks all your NFT transactions, whether purchases, sales, or exchanges. This eliminates the need for manual record-keeping and reduces the chances of missing crucial taxable events.
Accurate Tax Calculations
With KoinX, users get precise calculations tailored to Spanish tax rules. The platform distinguishes between income, capital gains, and VAT-related events, ensuring that each is reported under the correct category.
Multi-Platform Integrations
KoinX connects with 800+ platforms, including major NFT marketplaces and crypto exchanges. This wide coverage makes it easy to consolidate all your digital asset activity in one place.
Compliant Tax Reports
The platform generates ready-to-file tax reports that align with the requirements of the Agencia Tributaria. This ensures that you are always compliant with Spanish regulations while saving time during the filing process.
Take control of your NFT taxes with KoinX today and avoid the stress of misreporting. Start using KoinX now to make Spanish tax compliance simple and effortless.
Conclusion
NFT taxation in Spain brings multiple layers of complexity, from income and capital gains treatment to VAT and reporting requirements. Investors often find it challenging to keep track of every detail, especially when rules differ depending on the type of transaction or whether you are acting as an individual or a corporate.
Using a reliable platform like KoinX can make this process seamless. By automating tracking, ensuring accuracy, and generating compliant reports, KoinX helps Spanish NFT investors stay fully compliant while saving time. Get started with KoinX today and simplify your NFT tax filing effortlessly.
Frequently Asked Questions
Are NFTs Subject to Wealth Tax in Spain?
Yes, NFTs are included in wealth tax calculations if your total assets exceed the regional exemption thresholds. Rates vary depending on your region of residence, and NFTs must be valued at their fair market value when filing.
How Are Fractionalised NFTs Treated for Tax Purposes?
Fractionalised NFTs are treated similarly to standard NFTs. Any profit from selling fractions is subject to capital gains tax. Each transaction involving fractions must be valued in euros at the time of transfer and reported accurately to the Spanish authorities.
Do I Need to Declare NFTs Held Abroad?
The Spanish tax authority has not clarified if NFTs are subject to disclosure under Form 720. Currently, they may fall outside its scope, but investors should stay updated, as future guidance may change these reporting obligations.
Can I Deduct Expenses Related to NFT Creation?
Yes, if you create NFTs as part of a business activity, you can deduct related expenses such as property depreciation, platform fees, and other business costs. These deductions reduce taxable income, but proper documentation is required for compliance.
Do NFT Exchanges for Crypto Trigger a Tax Event?
Yes, exchanging NFTs for cryptocurrencies or other NFTs is considered a taxable event in Spain. There is no deferral available, and gains or losses must be calculated and reported in your annual income tax return.
Do Spanish Tax Authorities Accept Exchange Valuations for NFTs?
Yes, valuations taken from reputable exchanges or platforms are accepted for reporting NFT transactions. However, taxpayers must ensure consistency in using the same valuation source for transactions and maintain proper documentation to avoid disputes during audits.
Can Minors Be Taxed on NFT Earnings in Spain?
Yes, minors are also liable for taxes on NFT earnings in Spain. In such cases, the responsibility to file and report typically falls to their parents or legal guardians, who must include the NFT income or gains in their filings.
