How to Report Bitcoin Gains in Spain: Your Complete Tax Guide

Understanding Bitcoin Taxation in Spain

In Spain, cryptocurrency gains are treated as capital assets subject to taxation. Whether you’ve profited from trading, mining, or receiving Bitcoin as payment, the Agencia Tributaria (Spanish Tax Agency) requires declaration. Failure to report can result in penalties of 150% of unpaid tax plus interest. All residents must declare worldwide crypto gains, while non-residents only report Spanish-sourced income. The tax year aligns with the calendar year, with declarations due June 2025 for 2024 gains.

Step-by-Step Guide to Reporting Crypto Gains

1. Calculate Your Net Gain: Subtract acquisition costs (purchase price + fees) from disposal value. Use FIFO (First-In-First-Out) method for cost basis calculation.
2. Determine Taxable Amount: Short-term gains (held under 1 year) are added to regular income and taxed at 19%-47%. Long-term gains (held over 1 year) face capital gains tax at 19%-26%.
3. Complete Form 100: File via the Tax Agency’s online portal (Agencia Tributaria website) during annual income tax campaign (April-June). Declare gains in Section G of the form.
4. Report Foreign Holdings: If storing crypto on non-Spanish exchanges, submit Form 720 by March 31st for balances exceeding €50,000.
5. Pay Taxes Due: Settle liabilities through direct debit, bank transfer, or credit card after form submission.

Key Documentation You’ll Need

• Transaction history from all crypto exchanges used
• Wallet addresses and transfer records
• Proof of acquisition costs (receipts, exchange statements)
• Records of mining expenses (electricity, hardware)
• Previous tax returns for loss carryforwards

Special Considerations for Crypto Taxes

Crypto-to-Crypto Trades: Every trade between cryptocurrencies (e.g., BTC to ETH) is a taxable event requiring gain/loss calculation.
Mining Income: Mined coins are taxed as ordinary income at market value upon receipt, plus capital gains upon later sale.
Staking Rewards: Treated similarly to mining income – value at receipt is taxable, with subsequent sales triggering capital gains.
Loss Offsetting: Capital losses can offset gains from the same year. Unused losses carry forward up to 4 years.

Frequently Asked Questions

What if I only have small Bitcoin gains?

All gains must be reported regardless of amount. Spain has no minimum threshold for cryptocurrency taxation.

How are airdrops and hard forks taxed?

Both are considered taxable income at market value when you gain control of the new coins. Document the fair market value at receipt.

Do I need to report if I transferred crypto between my own wallets?

No – transfers between wallets you own aren’t taxable events. Maintain clear records showing both wallets under your control.

What happens if I used a decentralized exchange (DEX)?

You’re still liable for taxes. Use blockchain explorers like Etherscan to reconstruct transaction history. Consider third-party tax software for DeFi activities.

Can I deduct crypto investment losses?

Yes – capital losses reduce your taxable gains. If losses exceed gains, you can deduct up to €1,500 from ordinary income with remaining losses carried forward.

Avoiding Common Reporting Mistakes

Many taxpayers face penalties due to:
– Forgetting small transactions or airdrops
– Misclassifying long-term vs short-term holdings
– Failing to report foreign exchange accounts via Form 720
– Incorrect FIFO calculations
Use crypto tax software like Koinly or TaxDown to automate calculations and generate Spanish-compliant reports. For complex cases, consult a gestor (tax advisor) specializing in cryptocurrency.

Proper Bitcoin tax compliance protects you from audits while contributing to Spain’s evolving crypto regulatory framework. Maintain meticulous records, understand your obligations, and file accurately to navigate Spain’s crypto taxation landscape confidently.