Owning digital currencies? Starting in 2025, declaring cryptocurrencies and other virtual assets becomes compulsory, as stipulated by Royal Decree RD 249/2023. This means you must include your crypto holdings in your 2024 Income Tax Return.
Below, we break down the key details:
Tax Authorities Require Declaration of Cryptocurrencies and Virtual Assets
Individuals and entities holding or transacting with virtual currencies must report these operations to the Spanish Tax Agency (Hacienda). This obligation was first enforced in the latest Income Tax Return, aiming to enhance fiscal oversight of crypto transactions. But how are these assets taxed? Read on for a comprehensive guide.
Who Must Declare Cryptocurrencies?
The following are legally required to declare cryptocurrencies in their Income Tax Returns:
- Spanish tax residents (individuals/entities).
- Permanent establishments in Spain of foreign entities providing virtual currency exchange services, intermediation, or cryptographic key custody.
Declarations must include:
- Full name/legal entity name.
- Address and Tax ID (NIF).
- Currency type, balance (as of December 31), and euro valuation.
Transactions involving acquisitions, transfers, swaps, or payments using cryptocurrencies must also be reported.
Must Foreign-Held Virtual Currencies Be Declared?
Yes. Residents and permanent establishments must file an annual informational return for all virtual currencies held abroad, including those where they held disposal authority or beneficial ownership at any point during the year.
Exemption: Balances ≤€50,000 (aggregate value).
Required data:
- Owner/beneficiary details.
- Currency type and year-end balance.
- Valuation in euros.
Penalties for Non-Compliance: Fines Up to €20,000
Concealing foreign-held crypto exceeding €50,000 risks fines from €150 to €20,000, plus additional penalties (0.5%–1.5% of transaction value). Undeclared crypto income may incur a 26% surcharge on unpaid tax.
Example: A €4,000 tax liability could escalate to €5,040 (€4,000 + 26%).
Which Tax Forms Apply?
Use these models for declarations:
- Form 172: Virtual currency balances.
- Form 173: Transaction details.
- Form 721: Foreign-held cryptocurrencies.
Key thresholds:
- Report if profits exceed €1,000 (Form 172).
- Foreign holdings >€50,000 (Form 721).
Tax Rates for Crypto Gains
Progressive rates apply to taxable savings:
- <€6,000: 19%.
- €6,000–50,000: 21%.
- €50,000–200,000: 23%.
- >€200,000: 26%.
Upcoming Regulations: Crypto Asset Freezes
Under the DAC8 EU Directive, Spain’s Tax Agency may freeze cryptocurrencies to settle debts from 2026. Providers must disclose client transactions to enhance fiscal transparency.
Tracking Crypto Transfers
New rules will mandate identity disclosure for crypto investors and require banks to report income from crypto transactions. EU members must implement these by December 31, 2025.
FAQs
1. Do I need to declare crypto if I haven’t sold it?
Yes. Holdings and transactions (buy/sell/swap) must be reported, even without realized gains.
2. What if my crypto is in a foreign wallet?
Declare if the aggregate value exceeds €50,000. Use Form 721.
3. Are mining rewards taxable?
Yes. Treat them as income at their market value when received.
4. Can losses offset other gains?
Yes. Crypto losses may reduce taxable gains elsewhere.
5. How does Hacienda track undeclared crypto?
Through EU-wide data sharing and mandatory provider reporting.
6. What’s the deadline for declaring 2024 crypto?
Typically June 30, 2025 (aligns with Income Tax deadlines).
👉 Stay ahead of crypto tax changes with expert insights
For queries, consult a tax professional or visit the Spanish Tax Agency’s portal.