Crypto: How to declare DA in Spain as an expat
- Julio César Sanchez
- Sep 3
- 5 min read
Spain has positioned itself as one of the most advanced jurisdictions in Europe when it comes to the regulation and taxation of digital assets. For expatriates who have recently relocated, understanding how to declare cryptocurrencies and other crypto-assets is no longer optional.
It is a legal requirement that carries significant risks if ignored, but it also offers opportunities if approached strategically. The Spanish tax system is strict, the reporting regime is among the toughest in the EU, and the international exchange of information makes non-compliance virtually impossible. At Business Expats, we specialise in guiding international professionals and investors through this complex landscape, ensuring compliance while optimising their global tax position.
The legal framework for digital assets in Spain is anchored in both national and European legislation. Initially, cryptocurrencies were defined as “virtual currencies” under Law 10/2010 on the prevention of money laundering, which transposed EU Directive 2018/843. These were described as digital representations of value, not issued by a central authority, but accepted as a means of exchange and transferable electronically. However, with the approval of the Markets in Crypto-Assets Regulation (MiCA, Regulation EU 2023/1114), effective from 30 December 2024, this narrow definition has been replaced by the much broader concept of “crypto-assets.”
MiCA explicitly covers cryptocurrencies, stablecoins, utility tokens, non-fungible tokens, and tokenised securities, creating a harmonised framework across the European Union. For tax purposes in Spain, crypto-assets are treated as intangible assets. They are not legal tender, but they are assets that can be valued, transferred, and taxed, with each token considered a separate good depending on its protocol, liquidity, and denomination.
From the perspective of Spanish personal income tax (IRPF), crypto-assets fall within the rules on capital gains and losses.
Once an individual becomes a tax resident in Spain—generally after 183 days of presence or upon obtaining a residence permit such as the digital nomad visa—they are required to declare their worldwide income and gains. Crypto-to-fiat sales are taxed on the difference between acquisition and disposal value, net of commissions, while crypto-to-crypto swaps are treated as taxable barter transactions. Spain applies the FIFO method (“first in, first out”) to determine the acquisition cost of assets sold. These transactions are included in the savings tax base, subject to progressive rates that have been updated for 2025: nineteen percent up to six thousand euros, twenty-one percent between six thousand and fifty thousand euros, twenty-three percent between fifty thousand and two hundred thousand euros, twenty-seven percent between two hundred thousand and three hundred thousand euros, and thirty percent on gains above three hundred thousand euros.
Other forms of crypto income are not overlooked. Mining, staking, and airdrops are classified as income in kind or business income and are therefore taxed in the general base, at progressive rates that can reach forty-seven percent. Furthermore, crypto holdings must be included in the Spanish wealth tax declaration if the taxpayer’s net assets exceed the applicable thresholds, which vary by autonomous community but stand at seven hundred thousand euros nationally. In short, the Spanish system does not distinguish between traditional and digital assets for the purposes of income or wealth taxation: cryptocurrencies are fully integrated into the framework.
In addition to taxation, Spain imposes some of the most stringent reporting obligations in Europe, introduced through Law 11/2021 on anti-fraud measures.
These include three key forms. Form 172 requires Spanish custodians and exchanges to report annual balances of clients’ crypto-assets. Form 173 requires them to report crypto transactions. And Form 721, perhaps the most relevant for expats, obliges individuals to declare foreign-held crypto-assets if their combined value exceeds fifty thousand euros. This applies to coins and tokens stored on foreign exchanges or in private wallets outside Spain. Renewed filings are required if the value increases by more than twenty thousand euros compared to the last declaration. The penalties for non-compliance are severe, with fines imposed per undeclared data point.
One of the most common questions expatriates ask is what happens if they hold assets across multiple exchanges or wallets. The answer is simple: each platform must be tracked separately, and the total consolidated position must be declared. Even if a Spanish exchange reports on your behalf through Forms 172 and 173, you remain personally responsible for ensuring the accuracy of your declaration. Foreign exchanges such as Binance, Kraken, or Coinbase are not subject to Spanish reporting, but your obligation under Form 721 remains. Cold wallets and self-custody arrangements are also included if they hold crypto-assets whose value surpasses the reporting thresholds.
Another frequent area of misunderstanding relates to the so-called Beckham Law, Spain’s special inbound workers regime. This system was designed to attract international talent by offering a flat twenty-four percent tax rate on employment income up to six hundred thousand euros, with a forty-seven percent rate above that amount. Crucially, it also restricts taxation to Spanish-source income, allowing expats to exclude most foreign income from their Spanish tax base. However, the Beckham regime does not extend to the savings income base. This means that dividends, interest, and, importantly, capital gains from cryptocurrencies are excluded from its scope. In practice, an expatriate under the Beckham regime must still declare and pay full Spanish tax on their crypto gains, at the progressive rates of the savings base. Crypto is therefore outside the protective shield of Beckham.
This dual structure creates both risks and opportunities. Expatriates may benefit significantly from the reduced taxation of employment income under Beckham, but they must accept that their crypto-assets are fully taxable in Spain. Gains from Bitcoin, Ethereum, or any other digital asset realised during their Spanish tax residency are taxed like those of any regular resident. Moreover, their crypto holdings must be reported for wealth tax purposes and declared under Form 721 if kept abroad. The regime reduces exposure on salary but offers no relief on digital wealth. Understanding this distinction is essential to avoid costly mistakes.
At Business Expats, we have seen how many expatriates fall into the trap of assuming that the Beckham Law exempts their crypto holdings.
The reality is different: crypto gains remain fully taxable, and reporting obligations apply in full. The real question is not whether to declare crypto, but how to integrate digital assets into a broader tax strategy that balances employment income, international wealth, and compliance obligations. This may involve planning disposals to optimise tax brackets, harvesting losses, structuring holdings internationally, or aligning crypto strategies with the timing of your relocation. Done correctly, this ensures compliance while mitigating unnecessary exposure.
The conclusion is straightforward. If you are an expatriate in Spain in 2025, whether or not you benefit from the Beckham Law, you must declare and pay tax on your crypto gains. Employment income may be optimised under Beckham, but digital assets are taxed under the general rules of the IRPF. Spain’s reporting obligations, particularly Form 721, apply equally, and the penalties for omission are severe.
At Business Expats, we do not simply explain these rules. We turn them into strategies. We build robust compliance files to protect clients in the event of an audit, design tailored tax plans that integrate crypto with salary and global wealth, and provide clarity in an environment where regulation changes rapidly. We are trusted advisors to international professionals, entrepreneurs, and investors who want to enjoy life in Spain without uncertainty.
We invite you to take the next step. Join our exclusive webinar on 9 September 2025: “Crypto & Taxes in Spain”, where we will cover the latest developments under MiCA, practical case studies on multi-exchange reporting, and the interaction between crypto and the Beckham regime. And for those who need personalised solutions, book a private consultation with our international tax team. In the evolving landscape of crypto and expatriate taxation, knowledge is only the beginning. What you need is foresight, structure, and strategy.
At Business Expats, that is exactly what we deliver.
Julio César Sánchez
Co founder Business Expats
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