Crypto Tax Hell in Spain? A Complete Guide to Spain’s Crypto Tax System

Spain has become one of the European countries with the highest level of crypto adoption, with roughly 9% of its population holding digital assets.

But that boom has come with a price: an increasingly strict tax environment that many investors now describe as a “crypto tax hell.”In this article, we break down the reality of crypto taxes in Spain (Spain crypto tax): how crypto transactions are taxed, what obligations apply to both residents and foreign investors, and why the Spanish Tax Agency has put crypto firmly in its crosshairs.

Basic Crypto Taxation in Spain: How Your Cryptocurrencies Are Taxed

Every sale, swap, or use of cryptocurrency is considered a taxable event in Spain. The Spanish Tax Agency treats gains obtained from crypto as capital gains, which fall under the savings tax base.This means that when you sell or exchange crypto (whether for euros or for another crypto asset), you must report the resulting gain or loss. Even using crypto to pay for goods or services is treated as “disposing” of the asset — essentially a taxable sale at market value.

On the other hand, receiving cryptocurrency as income (through mining, staking, DeFi yields, or salary payments) is considered employment income or self-employment/business income, and it is taxed under the general tax base.Here are the key points you need to understand:

Tax brackets and rates

Crypto capital gains are taxed progressively within the savings income scale. The current rates are:

• 19% on gains up to €6,000

• 21% from €6,000 to €50,000

• 23% from €50,000 to €200,000

• 27% from €200,000 to €300,000

• 28% on gains above €300,000

(Note: Spain has announced that the top bracket will increase to 30% starting from tax year 2025.)

Meanwhile, crypto income treated as employment or business income (e.g., mining rewards or staking interest) is taxed under the general income scale, with combined national + regional rates ranging roughly from 24% up to 47% in the highest brackets.

Tax-exempt events

Not all crypto activities are taxable.The following do NOT trigger tax:

• Buying crypto with euros

• Transferring crypto between your own wallets

• Simply holding crypto (HODLing)

• Moving assets between exchanges or self-custody wallets

However, holding crypto can still trigger other taxes, such as Spain’s Wealth Tax, if your total net worth exceeds regional thresholds.

Losses and offsets

Crypto losses can be one of your strongest tools for reducing your tax bill.

Realised capital losses from crypto can be used to offset gains in the same year and, if not fully used, can be carried forward for up to four years.

So if you incur crypto losses in 2025, you can offset them against crypto gains (or other capital gains) up until 2029.Using this loss-offset system correctly is essential to avoid overpaying. Pro tip: maintain detailed records of all transactions — our team can assist with reconstruction and reporting.

Tax Obligations in Spain: Income Tax Filing and the New Reporting Requirements

Being a crypto investor in Spain comes with a series of mandatory tax obligations, both for local residents and for foreign investors with activity in the country. Ignoring them is not an option: the Spanish Tax Agency has made it clear that cryptocurrencies are under strict and increasing scrutiny.These are the main obligations you need to be aware of:

Annual Income Tax Return (IRPF – Form 100)

If you are a tax resident in Spain, you must include your crypto gains and losses in your annual income tax return (Form 100).

Who must file it?In practice, any resident taxpayer who earns money from crypto must declare it — even if the gain is only €1.

The only people exempt from filing a return are those who do not meet the minimum income thresholds (e.g., students with no income). However, if your crypto gains exceed €1,000 per year, you must file your tax return regardless of your overall income level.

Spain’s tax season typically runs from April to 30 June of the following year (for example, income obtained in 2025 is declared between April and 30/06/2026).The Tax Agency’s online system (Renta Web) includes a dedicated field (box 0300) for reporting capital gains from cryptocurrencies.

Form 721 – Reporting Foreign-Held Crypto Assets

Form 721 is the new nightmare for many crypto investors in Spain.Since 2024, the Spanish Tax Agency requires residents to report crypto assets held abroad (e.g., on Binance, Coinbase, Kraken, etc.) using this form.

Who must file Form 721?All tax residents in Spain, both individuals and companies, who hold or are beneficiaries of crypto assets located outside Spain with a total value exceeding €50,000 at year-end.

Form 721 is an annual filing. The first submissions were due between 1 January and 31 March 2024, reporting balances as of 31/12/2023. In subsequent years, you only need to file again if your total foreign-held crypto increases by more than €20,000 compared with your last submission.

Important:Even if you held crypto abroad but sold everything before year-end, you may still be obligated to report. In that case, you must declare a zero balance and indicate the date on which you ceased to be the holder.

This reporting obligation originates in Spain’s 2021 Anti-Fraud Law and has now been fully implemented through Royal Decree 249/2023 and Order HFP/886/2023.

Wealth Tax (Impuesto sobre el Patrimonio)

Spain imposes a net wealth tax each 31 December, and cryptocurrencies form part of the taxable net worth.

If you are a resident and your total wealth exceeds the regional exemption threshold (often around €700,000, depending on your autonomous community), you must include your crypto holdings in your Wealth Tax return.

Crypto must be valued in euros using the market price at 23:59 on 31 December.

In practice, only a minority of taxpayers pay Wealth Tax — mainly high-net-worth individuals. Some regions offer almost full rebates.

However, a separate Solidarity Tax on Large Fortunes was introduced in 2022 (applicable to wealth above €3 million, including crypto), even in regions where Wealth Tax is effectively neutralised.This means high-net-worth crypto holders may face annual taxation simply for holding a large amount of crypto, regardless of whether they sell.

Forms 172 and 173 – Exchanges Reporting on Your Behalf

Individuals are not the only ones reporting.Crypto platforms and intermediaries also have mandatory reporting obligations.

Forms 172 (crypto balances) and 173 (crypto transactions) were approved in 2023. They require Spanish exchanges, custodians, and other service providers to report client balances and movements directly to the Tax Agency.

This means that Hacienda can obtain your transaction data straight from the platforms, regardless of what you declare.

By 2024, the Tax Agency had already collected exchange data and began cross-checking it with taxpayers’ declarations.

For 2025 and 2026, Spain’s Annual Tax Control Plan states that inspections will intensify, especially for taxpayers who trade crypto but fail to declare their gains properly.Authorities have even claimed they “already know the names” of investors using platforms such as Coinbase and Binance.

In short: even if you operate through foreign exchanges, it is increasingly likely that the tax authorities know who you are and what you trade.

Record-Keeping Requirements

By law, taxpayers must keep all supporting documentation for at least four years, which is the standard statute of limitations in Spain.

This includes:

• invoices

• screenshots

• trading histories

• records of wallet-to-wallet transfers

• exchange statements

• purchase and sale price evidence

If the Tax Agency reviews your file (they have four years from the filing date to do so), you must be able to prove prices, dates, balances, and movements.

Make sure to keep thorough backups of your entire crypto activity — years later you may need them to avoid adjustments or penalties.

Dying of Success: Fines and Penalties in Spain’s “Crypto Tax Hell”

What happens if you fail to comply with these obligations?This is where Spain’s crypto tax hell shows its flames 🔥.Penalties can be severe — and in extreme cases, even criminal.Here’s what you’re exposed to if you don’t declare your crypto correctly:

Fines for not reporting balances (Form 721)

The penalty regime for Form 721 mirrors the old (and infamous) Model 720 for foreign assets.Under current rules, the Tax Agency can impose:

• A €300 fixed fine for failing to file Form 721 when required (if requested by Hacienda).

• A €150 fine for filing incorrect or incomplete information.

• Plus €20 per omitted item (e.g., each unreported cryptocurrency) or €10 per incorrect item of information.

Example:If you forgot to declare 3 different crypto assets worth over €50,000 in total, you could face:€300 + (3 × €20) = €360 minimum penalty, which can be higher depending on the circumstances.

These sanctions generally expire after 4 years (5 years if the case is treated as tax fraud).While the original Model 720 imposed absurdly high fines (up to €5,000 per missing item), which were struck down by EU courts, the current regime is still far from lenient.A €300 penalty for missing a form still hurts — and filing on time is always cheaper than fixing the problem later.

Fines for failing to declare gains (IRPF)

If you traded crypto and did not declare your gains in your income tax return, Hacienda can classify this as a serious tax offence.

Sanctions are generally calculated as a percentage of the tax evaded, with fines of:

• 50%,

• 100%, or even

• 150% of the unpaid tax,

depending on the severity (e.g., concealment, falsified documents, repeated non-compliance).

Example:If you failed to declare €10,000 in crypto gains, Hacienda could demand the €10,000 in unpaid tax plus between €5,000 and €15,000 in penalties.

Typical sanctions for crypto-related non-compliance range between €300 and €20,000 (sometimes more).

And here comes the real danger:If the undeclared amount exceeds €120,000, the case becomes criminal tax fraud, with the possibility of prison sentences, in addition to the tax debt, interest, and penalties.

In short: earning big with crypto and not reporting it can put you in serious trouble.Calling it a “crypto tax hell” is not an exaggeration.

Late filings and surcharges

If you didn’t declare your crypto in previous years and want to fix it — or fear the Tax Agency might be looking at your case — there are two ways to correct past returns:

• A rectification (if you forgot to include something in your favour, e.g., a loss).

• A supplementary return (if you omitted taxable gains you should have reported).

Correcting voluntarily before Hacienda contacts you avoids penalties, but you will still have to pay the tax owed, plus interest and late-filing surcharges:

• 1% per month of delay, up to 12 months.

• After 12 months: a 15% fixed surcharge, plus daily interest.

Example:If you should have declared your crypto in June 2024 and file a supplementary return in June 2025, the surcharge is 12%.If you file in August 2025 (14 months late), the surcharge is 15%, plus interest.

The message is simple:The longer you wait, the more expensive it becomes.Experts strongly recommend keeping detailed records so you can correct issues quickly if needed.

Other costs of Spain’s crypto tax hell

Beyond formal penalties, Spain’s crypto tax environment creates indirect costs and headaches:

• Many Spanish banks block or scrutinise crypto-related transfers, which can delay withdrawals or deposits.

• Constant regulatory changes add legal uncertainty.

• Small mistakes in your return can trigger long back-and-forth interactions with the Tax Agency.

• Some investors perceive Spain as increasingly hostile to crypto, contributing to the “tax hell” narrative.

Given this landscape, being properly advised is critical.At Zenblock, our team specialises in crypto taxation and can help you navigate this environment without unnecessary risk.

No Escape: Spain Tightens Its Grip on Crypto

If the situation already felt tough, the next wave of regulatory measures points toward near-total control over crypto activity.Both the European Union and the Spanish government are deploying mechanisms to ensure that the Tax Agency knows everything — and can even seize your crypto if you owe money.Here are the key developments defining this new era:

DAC8 and the Seizure of Crypto Assets

In October 2025, Spain approved the transposition of the EU’s DAC8 directive, a watershed moment for crypto regulation.DAC8 expands the definition of crypto-asset (including tokens, NFTs, etc.) and, for the first time, allows the Spanish Tax Agency to seize crypto assets from taxpayers with outstanding debts.

In other words, crypto can now be treated like any other embargable asset — a bank account, a property, or your bitcoins.

Spain must fully implement DAC8 by 31 December 2025, with full enforcement beginning in 2026.

DAC8 also introduces automatic exchange of tax information between EU countries regarding crypto transactions.This means:

• Any movement on an EU-based exchange

• And potentially on many non-EU platforms (through cooperation agreements)

…will be automatically reported to the authorities.

The expectation is total transparency: every crypto operation becomes traceable by Hacienda.

Combined with Spain’s own reporting rules — Forms 721, 172 and 173 — plus international cooperation, trying to hide crypto will be virtually impossible.

Spain’s Minister of Finance has been explicit: these measures are designed to crack down on tax fraud involving crypto assets.

For companies and investors, the message is unambiguous:the era of anonymity is over.Service providers face heavier reporting burdens, and non-compliance will bring severe penalties.

MiCA and Exchange Licensing

At the same time, the EU’s MiCA Regulation (Markets in Crypto-Assets) is entering into force.MiCA requires crypto platforms operating in the EU to obtain a full regulatory license and meet strict compliance and governance standards.

In Spain, the shift during 2024–2025 has been dramatic:

• Previously: a simple Bank of Spain registry for AML purposes.

• Now: a formal CNMV authorisation under MiCA is required to operate.

This will push many smaller or non-compliant platforms out of the regulated market unless they secure a licence.

For investors, the implications are clear:

• Only supervised, fully compliant exchanges will remain.

• These exchanges will cooperate extensively with authorities.

• The “wild west” era is effectively over.

• Financial privacy will shrink significantly, especially once DAC8 is fully operational.

Anyone still thinking “Hacienda won’t find out” is playing with fire.

Crypto Tax Exodus

Faced with this environment, some investors and companies are voting with their feet.

Forums and social media are full of advice like:“Escape Spain’s crypto tax hell before it’s too late.”

For years, Portugal was the favourite alternative (no crypto capital gains tax for individuals), although that has changed with new taxation.Other jurisdictions — Switzerland, Dubai, El Salvador — market themselves openly as crypto havens, with zero or minimal tax burdens.

But tax migration is not trivial:

• You must establish real residency abroad.

• You must comply with the laws of the destination country.

• And Spain may still consider you a tax resident if you spend more than 183 days there or maintain certain ties.

If you’re considering leaving Spain for tax reasons, do it with proper planning — and never wait until Hacienda opens an inspection.Running away after evading taxes can make your legal problems exponentially worse.

The so-called “nuclear option” of leaving the country reflects the frustration many crypto users feel toward Spain’s tax framework —but it is a serious decision and should never be taken lightly.

Information and Planning: Your Best Defense Against Spain’s Crypto Tax Nightmare

Spain offers an appealing environment for cryptocurrencies in terms of adoption and ecosystem growth — but its tax and regulatory burden is substantial. For residents, understanding and complying with these rules is essential to avoid unpleasant surprises (or heart attacks) from the Tax Agency. For international investors, Spain can be an attractive market, but the fiscal price of operating here must be taken seriously.

As we’ve seen, crypto is taxed much like other financial assets (with rates reaching ~28% on gains — soon 30% — and up to 47% on certain types of income) and the government is deploying unprecedented transparency and control mechanisms: mandatory reporting models, data-sharing frameworks, asset seizures and more. All of this fuels the narrative of a “crypto tax hell” — a dramatic expression, but one that captures the frustration of many investors.

Still, it is possible to operate within this system without getting burned. The key is proper tax planning and professional guidance. Stay up to date on regulatory changes (new tax brackets, DAC8 enforcement, reporting deadlines, etc.), keep meticulous records of your transactions, and file everything correctly and on time.

If you’ve generated significant gains, consider legal strategies to optimise your tax bill — loss harvesting, staggered disposals, or exploring special tax regimes where applicable. And if things start getting complicated, get help: at Zenblock, our specialists in crypto taxation can guide you through the process and help you comply with Spanish tax law without losing your mind — or your assets.

At the end of the day, your curiosity or enthusiasm for crypto shouldn’t turn you into a tax martyr. With the right information and a bit of foresight, you can navigate this regulatory landscape and sleep well knowing that the only “hell” your crypto faces is the next market crash — not a certified letter from Hacienda.

See you in the next article.