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

Understanding Bitcoin Taxation in Spain

Reporting cryptocurrency gains is mandatory for Spanish residents under Agencia Tributaria (Tax Agency) regulations. Whether you’ve sold Bitcoin for profit, traded altcoins, or earned crypto through staking, Spain treats these as taxable events. Failure to declare can result in penalties of 50-150% of unpaid tax plus interest. With Hacienda increasingly tracking crypto transactions via centralized exchanges, proper reporting is essential for compliance.

Step-by-Step Guide to Declaring Crypto Gains

1. Classify Your Activity: Determine if gains qualify as:
   • Capital gains (occasional trading)
   • Business income (frequent trading/mining)
   • Other income (staking, airdrops)
2. Calculate Your Gains:
   • Sale price minus purchase cost
   • Deduct transaction fees and allowable expenses
   • Use FIFO (First-In-First-Out) method for cost basis
3. Prepare Documentation:
   • Transaction history from exchanges
   • Wallet addresses
   • Receipts for hardware/operational costs
4. File Tax Forms:
   • Modelo 100: For capital gains (Form 100, Box 332)
   • Modelo 130: For professional crypto activities
   • Modelo 720: If holding >€50,000 in foreign exchanges
5. Submit by Deadlines:
   • April 1-30: Annual income tax (IRPF)
   • January 1-31: Wealth tax declarations

Spanish Crypto Tax Rates Explained

Tax treatment varies based on activity type:

• Capital Gains: Progressive rates from 19% (first €6,000) to 28% (over €200,000)
• Business Income: Added to regular income, taxed at 19%-47%
• Wealth Tax: 0.2%-3.5% on holdings exceeding €700,000

Note: Losses can be offset against gains for up to 4 years.

Common Reporting Mistakes to Avoid

• Ignoring small transactions (all activity must be reported)
• Mixing personal and business wallets
• Forgetting Form 720 for foreign exchange holdings
• Incorrect FIFO calculations leading to over/underpayment
• Omitting crypto-to-crypto trades (considered taxable events)

Frequently Asked Questions

Q: Do I need to report if I only bought Bitcoin?
A: No – only taxable events like selling, trading, or earning crypto require declaration. Holdings aren’t taxed until realized.

Q: How does Spain treat Bitcoin mining income?
A: Mining rewards are considered business income. You must register as self-employed (autónomo) if mining exceeds €1,000/year.

Q: Are there penalties for late reporting?
A: Yes – minimum 5% surcharge (up to 20% for delays over 12 months) plus monthly 3.75% interest.

Q: Can I use crypto tax software in Spain?
A: Absolutely. Tools like Koinly or TaxScouts support Spanish tax rules and generate Modelo 100-ready reports.

Q: Is peer-to-peer Bitcoin selling taxable?
A: Yes – all sales must be reported regardless of platform. Maintain KYC records for transactions over €1,000.

Staying Compliant in 2024

With Spain implementing DAC8 crypto reporting rules in 2026, transparency requirements will increase. Consult a gestor specializing in cryptocurrency if handling complex transactions. Keep detailed records using blockchain explorers and exchange APIs to simplify annual declarations. Remember: Accurate reporting protects you from audits while supporting cryptocurrency legitimacy in Spain’s financial ecosystem.