In Spain, there is no specific regulation about cryptocurrencies such as bitcoin. However, the “Dirección General de Tributos” (hereinafter, DGT), has ruled on the matter in some resolutions and has clearly established that cryptocurrency users must pay taxes in certain situations.
In relation to the Personal Income Tax, we can conclude, taking into account the resolutions from he DGT the following:
- The mining of cryptocurrencies is an economic activity, and therefore there will be an obligation for the “miner” to pay Personal Income Tax in respect of the income obtained through this activity, in addition to complying with the corresponding Social Security obligations.
- Operations carried out with cryptocurrencies give rise to capital gains and losses, which the taxpayer will have to integrate in the relevant Personal Income Tax Return, even if it has not been converted to fiat (that is, legal tender). For example, if we buy 100 btc at € 5,000 and exchange them for another cryptocurrency at a time when the valuation the 100 btc is € 7,000, we would have a capital gain of € 2,000, regardless of whether we have not made the change to “real” money.
- If no operation is carried out with cryptocurrencies, the mere increase in the valuation of the wallet will not give rise to any capital gain or loss. In other words, if a digital portfolio increases in value during the year, but it has not been operated with, there will be no capital gain to declare.
With regard to Net Wealth Tax, the valuation of the wallet on December 31 each year, must be taken into account to conclude whether, jointly with the with the value of the rest of the assets and rights, a person may be required to file a Net Wealth Tax Return.