Xavier Vilalta, Director of the Tax Department at ETL ILIA, was interviewed by Rafa Lupión on his radio program Se van, an enteral for Plaza Radio, about the current tax issues surrounding cryptocurrencies.

Vilalta points out that after cryptocurrencies became popular in 2020, the administration started working on their regulation. Until then, the taxation of cryptocurrencies was minimal; at most, there were a few binding consultations. In fact, to date, there is still no specific law regulating the taxation of cryptocurrencies.

With the increasing interest in cryptocurrency taxation, especially in determining when to declare them based on the transaction type, we may soon see a comprehensive tax compendium regulating these operations. This foresight can help individuals and companies prepare for potential changes.

It’s important to note that profits from cryptocurrency transactions, whether buying or selling, must be declared. This responsibility is crucial for individuals and companies involved in these transactions.

The central tax we must consider is the Personal Income Tax (IRPF). Most cryptocurrency holders in Spain are individuals. More and more companies are interested in promoting services in Blockchain and cryptocurrencies.

Within the IRPF, the General Directorate of Taxes has already explained how the most common returns are taxed and how they should be declared:

  • Sale of cryptocurrencies.
  • Exchange of one cryptocurrency for another.
  • When we pay for a service with cryptocurrencies.
  • When I receive interest for having my cryptocurrencies deposited in staking (a form of deposit).

The European Union has taken a step towards regulating cryptocurrencies with the MiCA regulation, which the European Parliament approved. This law’s objectives include tackling money laundering and tightening control over operations with cryptocurrencies and Blockchain technology in terms of opaque usage. Among other goals, it seeks to combat this opacity. Each member state will have its specific regulations.

You can listen to his intervention here:

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