Cryptocurrency taxation in Spain: the FIFO rule and taxable events

The Spanish Tax Agency has made it clear that cryptocurrencies are taxed in Spain. Every sale, swap, staking reward or crypto-to-crypto exchange is a taxable event that must be declared.

Mandatory FIFO rule

When you sell cryptocurrencies, you are deemed to sell the oldest ones first (First In, First Out). This can generate larger capital gains than expected if you bought when prices were low.

Which events are taxed?

• Sale of crypto for euros: capital gain or loss.
• Crypto-to-crypto swap: also a taxable event.
• Staking/DeFi: investment income.
• Airdrops and mining: business income or capital gain.

Form 721

If you hold more than €50,000 in cryptocurrencies on foreign exchanges, you must file Form 721. At DPL Asesores we handle all crypto taxation.