Where taxpayers get caught out
Swapping between cryptocurrencies without cashing out is still a disposal in Spain. Active traders who never converted to euros often believe they have nothing to declare, and they are wrong.
Taxable events
| Operation | Tax treatment |
|---|---|
| Sell crypto for euros | Capital gain or loss, savings scale |
| Exchange crypto for crypto | Disposal: gain or loss on the crypto given |
| Pay for goods with crypto | Disposal of the crypto used |
| Staking, lending rewards | Income when received, at market value |
| Hold (no operation) | No income tax; counts for wealth tax |
Calculating gains
Gains are calculated with the FIFO method for units of the same crypto. Keep exports from every exchange and wallet; reconstructing years of trades is time-consuming but possible.
The modelo 721
Residents holding cryptocurrencies with custodians outside Spain worth more than 50,000 euros on 31 December must file the modelo 721 between January and March. It is an information return, like the modelo 720, and later filings are needed only if the value increases by more than 20,000 euros. Crypto in self-custody wallets is not reported on the 721, but it is still taxable.
Wealth tax
Crypto counts for wealth tax at its market value on 31 December. See wealth tax.
New residents
Gains accrued before becoming resident are not lost: the acquisition cost remains the original cost. Planning sales before moving can make sense. See savings income and our income tax return service.
An illustrative example
Based on situations we commonly see; not a specific client. A Swedish developer living in Palma had traded between dozens of tokens for three years. We reconstructed the trades from exchange exports with the FIFO method, declared net gains through a voluntary amendment and filed the modelo 721 for the coins held with a foreign exchange.
How Castell.tax can help
We prepare the annual income tax return of foreign residents in the Balearic Islands, including foreign pensions, investments, rental income and the foreign tax credit, and we compare joint and individual filing every year. We explain the result in English or German before filing. See our income tax return service or contact us to review your situation before the next campaign.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
Is exchanging crypto for crypto taxable in Spain?
Yes, it is a disposal of the crypto you give.
What rate applies to crypto gains?
The savings scale, from 19%.
Do I report self-custody wallets on the 721?
No, only crypto held with foreign custodians, but it is still taxable.
Does crypto count for wealth tax?
Yes, at its value on 31 December.