Filing taxes on your crypto may feel like a challenge, especially when the rules seem complicated and the forms keep changing. Yet, in Spain, the Agencia Tributaria (AEAT) makes it clear that every crypto investor has a duty to declare their holdings and transactions. Ignoring this responsibility could lead to fines, penalties, or even criminal charges.
That’s why understanding how to declare cryptocurrencies is more important than ever. From income tax to wealth tax, Spain has specific requirements for different kinds of crypto activities. Knowing the right forms, deadlines, and methods can save you time, stress, and money. This guide will walk you through the exact steps you need to follow to stay compliant and file with confidence.
When Do You Need To Declare Cryptocurrencies in Spain?
Knowing when to declare cryptocurrencies in Spain is essential to avoid mistakes and penalties. The Spanish tax system has clear deadlines and rules for different types of declarations. Whether it is income, wealth, or assets held abroad, each category comes with its own filing period and form.
Annual Income Tax Declaration
Spanish residents must declare their cryptocurrency income and gains through Form 100 (Modelo 100). The declaration period runs from April to June each year, covering the previous tax year. All disposals, such as selling, trading, or spending crypto, must be reported. Even small transactions are included, as there is no minimum threshold for declaring income from cryptocurrencies.
Wealth Tax Declaration
If your overall assets, including cryptocurrencies, exceed the exemption limits set by your autonomous community, you must file Form 714 (Modelo 714). The valuation is based on the market value of your holdings on 31 December. Cryptocurrencies are declared under “Other assets and rights of economic content,” and each region has its own thresholds for Wealth Tax.
Declaration of Foreign Holdings
Spanish residents who hold cryptocurrencies abroad must file Form 721 (Modelo 721) if the combined value of those holdings is above €50,000. This declaration must be submitted between 1 January and 31 March of the following year. Failure to report foreign holdings can lead to heavy fines and closer scrutiny by the Agencia Tributaria.
Reporting Crypto Losses
It is not only profits that need to be declared. Losses from cryptocurrency transactions must also be reported in your annual income tax return. These losses can be offset against gains from other investments, helping to reduce your overall tax liability. Keeping accurate records ensures you can fully benefit from this provision.
Read More: Crypto Taxes In Spain: Ultimate Tax Guide
How To Declare Cryptocurrencies in Spain?
Declaring cryptocurrencies in Spain involves understanding which type of income or gain applies to your transactions. The AEAT has assigned specific sections within the tax return to cover economic activities, investment income, and savings income. Using the correct section ensures your declaration is accurate and compliant.
Declaring Income from Economic Activities
If you earn income through mining or similar crypto-related work, it is treated as economic activity. You must report this in Section D1 of Form 100 (Modelo 100). Under Actividades económicas en estimación directa, choose BO6 from Box 0166 and enter your income in Box 0178. These earnings are classified as business income and taxed accordingly.
Declaring Investment Income
Rewards from staking or interest earned from lending cryptocurrencies are reported as investment income. These should be entered in Section B of Form 100. Navigate to Rendimientos del capital mobiliario a integrar en la base imponible del ahorro and record the total amount in Box 0031. The income is taxed under the savings income tax scale.
Declaring Savings Income
Selling, trading, or wrapping cryptocurrencies falls under savings income. These transactions are declared in Section F2 of Form 100 under Ganancias y pérdidas patrimoniales. Select Monedas virtuales in Box 1804 and provide the necessary details for each disposal. If you have numerous transactions, you may request to submit a summarised attachment to avoid reporting every single entry individually.
Applying FIFO Method for Transactions
Spain requires the use of the FIFO method (First In, First Out) when calculating gains or losses. This means the first coins you purchased are considered the first ones you sold. By applying FIFO, you determine your taxable gain or loss more accurately and ensure compliance with Spanish tax rules. Maintaining detailed records of each purchase and disposal is essential for correct reporting.
How To Declare Cryptocurrencies for Wealth Tax?
Apart from income tax, Spanish residents may also be liable for Wealth Tax if their total assets exceed the regional exemption threshold. Cryptocurrencies are considered part of personal wealth, and they must be declared in the correct section of the Wealth Tax return. Understanding how to declare them ensures compliance with both national and regional requirements.
Filing Form 714
Cryptocurrencies are declared under Other assets and rights of economic content in Form 714 (Modelo 714). There is no specific category dedicated to virtual currencies, so they must be included in this section. If your assets exceed the exemption limit set by your autonomous community, you must include the value of your crypto holdings in this declaration.
Valuation Method
When reporting cryptocurrencies for Wealth Tax purposes, the value used is the market price as of 31 December of the tax year. If there is no clear market price available, the acquisition value is applied. This ensures that your crypto assets are accounted for consistently and fairly in line with Spanish Wealth Tax regulations.
Thresholds by Region
The exemption thresholds for Wealth Tax vary between autonomous communities in Spain. While most regions start taxing wealth at around €700,000, others may have lower or higher limits.
For example, Madrid offers an exemption from Wealth Tax, while other regions such as Catalonia and Valencia impose progressive rates. Checking your regional rules is essential to determine whether your crypto holdings are taxable.
Foreign Asset Reporting for Cryptocurrencies in Spain
Spanish tax residents must also pay attention to rules on declaring assets held abroad. The AEAT distinguishes between general foreign asset declarations and those specific to cryptocurrencies. Knowing which form to file and when to file it helps you avoid unnecessary penalties and ensures full compliance with Spanish tax law.
Form 720
Form 720 (Modelo 720) is used to declare foreign assets such as properties, bank deposits, and investments worth more than €50,000. However, cryptocurrencies are not included in this declaration. Even so, if you hold other qualifying assets abroad, you must still complete Form 720 to ensure your Wealth Tax declaration aligns with your reported foreign holdings.
Form 721
Form 721 (Modelo 721) applies specifically to cryptocurrencies held abroad. If the combined value of your crypto holdings outside Spain exceeds €50,000, you must file this form between 1 January and 31 March of the following year. Valuation is based on the average market price as of 31 December. Failure to file or filing incorrectly can result in fines of €200 or more, depending on the nature of the error.
Penalties for Not Declaring Cryptocurrencies in Spain
Failing to declare cryptocurrencies in Spain carries significant consequences. The AEAT enforces strict measures to ensure compliance, and penalties apply for both late filing and inaccurate submissions. These fines and sanctions highlight the importance of accurate reporting and timely submission of all required forms.
Fines for Late or Incomplete Filing
If you file your crypto taxes late or with missing details, you may face financial penalties. These can include fines starting at €200 for minor mistakes and rising to €5,000 for each piece of missing data. Incomplete or incorrect declarations are treated seriously, with the minimum fine often set at €1,500. The costs increase if the undeclared value is substantial.
Criminal Charges for Severe Evasion
When undeclared income exceeds €120,000, the penalties escalate to criminal charges. In such cases, the taxpayer may face prosecution and imprisonment in addition to financial fines. The AEAT views severe evasion as a deliberate offence, making it essential to declare all crypto-related income and holdings accurately to avoid these serious consequences.
Records To Keep Handy While Filing Crypto Taxes in Spain
When declaring cryptocurrencies in Spain, maintaining accurate records is not optional but a legal requirement. The AEAT requires you to keep detailed documentation for five years after preparing the records or completing the transactions. Having these records ready ensures that your tax return is correct and that you are prepared in case of a review or inspection.
Here are the records you need to keep:
- The date of each cryptocurrency transaction.
- The value in euros of the cryptocurrency at the time of the transaction, taken from a reliable online exchange.
- Details of what the transaction was for and who the other party was, even if this is only a wallet address.
How Can KoinX Help With Crypto Taxes in Spain?
Managing crypto taxes in Spain can feel overwhelming with multiple forms, deadlines, and complex calculations. This is where KoinX becomes a valuable tool. It automates the process, reduces the chance of error, and ensures your reports meet Spanish tax requirements. By using KoinX, you save time and gain peace of mind.
Automated Transaction Import
KoinX eliminates the need for manual entry by automatically importing all your transactions. This feature ensures accuracy and helps you avoid mistakes that could occur when handling spreadsheets.
Integration with 800+ Platforms
With integration across more than 800 exchanges, wallets, and blockchains, KoinX connects directly to your accounts. This gives you a unified and comprehensive view of your crypto activity.
Auto-Classification of Transactions
Spanish tax rules can be complex, but KoinX simplifies them with auto-classification. It categorises every transaction, whether it is buying, selling, staking, or lending, in line with Agencia Tributaria’s requirements.
Spanish-Compliant Tax Reports
KoinX generates tax reports designed to comply with Spanish tax laws. These reports can be submitted directly, ensuring your declaration matches what the tax authorities expect.
Unified Portfolio View
Keeping track of multiple wallets and exchanges can be difficult. KoinX solves this by offering a unified portfolio view, so you can monitor your holdings and understand the tax impact in one place.
Data Accuracy and Security
Your crypto data remains protected with KoinX. The platform ensures data accuracy while maintaining high security standards, so your sensitive financial information is always safeguarded.
By using KoinX, investors can simplify tax filing, reduce errors, and stay fully compliant. Sign up on KoinX today and make your Spanish crypto tax filing stress-free.
Conclusion
Declaring cryptocurrencies in Spain requires attention to detail, strict record-keeping, and timely filing of the right forms. From annual income tax to wealth tax and foreign asset declarations, the rules are designed to ensure full transparency with the Agencia Tributaria. Missing deadlines or failing to declare can lead to heavy fines or even criminal charges.
With the right tools, however, managing crypto taxes becomes much easier. KoinX streamlines the entire process, from importing transactions to generating Spanish-compliant tax reports. By using KoinX, you can save time, avoid costly errors, and file with confidence. Start today with KoinX and simplify your Spanish crypto tax journey.
Frequently Asked Questions
Is It Mandatory To Declare All Crypto Transactions In Spain?
Yes, all crypto transactions must be declared in Spain. This includes buying, selling, trading, or using crypto for payments. Even if you only hold crypto, it may still be reportable under Wealth Tax rules if your total assets exceed the regional threshold. Non-declaration can lead to heavy penalties.
Do I Need To Declare My Crypto If I Only Hold It?
Holding crypto itself is not a taxable event, but it may be subject to Wealth Tax if your total assets exceed the exemption threshold in your region. In addition, if your holdings abroad are worth more than €50,000, you must file Form 721 between January and March of the following year.
What Happens If I File My Crypto Taxes Late In Spain?
Late filing of crypto taxes in Spain results in penalties. The fines range from 5% to 20% depending on how late the submission is, and additional interest may apply. If the delay exceeds one year, penalties increase further. Filing on time helps you avoid these unnecessary financial burdens and risks.
Which Forms Do I Need To Use For Declaring Crypto Abroad?
Spanish residents must use Form 721 to declare cryptocurrencies held abroad if their total value exceeds €50,000. Form 720 does not apply to cryptocurrencies; however, it still applies to other foreign assets, such as property or bank accounts. Filing these forms correctly is essential to meet legal obligations and avoid penalties.
How Are Crypto Losses Treated In Spain?
Crypto losses in Spain can be offset against gains from other investments, reducing your taxable income. If your losses exceed gains in a single year, you can carry them forward for up to four years. This allows you to reduce future tax liabilities by applying past losses to new profits.
Can I Deduct Transaction Fees When Declaring Crypto Taxes?
Yes, you can deduct transaction fees, such as exchange charges or gas fees, when calculating capital gains. These costs reduce your overall taxable gain and must be included in your records. Accurate documentation of all related expenses ensures you claim the correct deductions and remain compliant with Spanish tax regulations.
