Hostages “Spanish style”

🛑 Spain is making crypto investors hostages of the tax system — profits from digital assets may be taxed almost by half

The country is preparing large-scale changes in cryptocurrency taxation that could radically alter the financial strategy of local investors. The ruling coalition intends to increase the tax on profits from digital assets to 47%, which is significantly higher than the current limits. If earlier investors could expect to pay a maximum of 30% to the state, now almost half of the money earned from cryptocurrency will go into the country’s budget.

What exactly lawmakers propose

The parliamentary group “Sumar” proposed to reclassify income from cryptocurrencies. Previously, they belonged to the category of “savings income” and were taxed at lower rates. The new initiative moves them into the category of “general income”, which automatically increases the tax burden on crypto investors by an additional 17%.

In practice, this means that profits from selling or exchanging digital assets, even if received by a private individual with long-term investments, will be taxed at nearly half of the amount. This is especially painful for investors who relied on stable asset growth and planned a gradual withdrawal of profits.

New rates and bureaucratic innovations

Currently, cryptocurrency profit taxation in Spain looks as follows:

• The income of most investors is taxed at up to 28%.
• For wealthy investors, the rate reaches 30%.

With the new amendments, for individuals with high incomes, the rate may rise to 47%. For corporate investors, a fixed tax of 30% on income from cryptocurrencies is planned.

But the state does not stop there. The amendments also require the national securities regulator CNMV to develop special risk classifications for crypto assets. This means that in addition to increasing taxes, investors will face additional bureaucratic barriers and complex procedures.

Reaction of experts and the market

Economists and analysts are already sounding the alarm. José Antonio Bravo Mateu warns that such a policy may have the opposite effect:

• Investors who store cryptocurrency themselves may keep assets out of government reach.
  
  
  
• High taxes will prompt wealthy holders of digital assets to seek more favorable jurisdictions.

“The only thing these measures will achieve is making Bitcoin holders in Spain think about moving when BTC rises so much that they won’t care what politicians say,” Mateu says.

These initiatives place Spain in direct contradiction with other countries actively attracting cryptocurrency capital.

The examples are clear: the United Arab Emirates and El Salvador offer 0% capital gains tax on digital assets. In Europe, countries like Germany exempt long-term cryptocurrency holders from taxes.

Lawyer Chris Carrascosa, an expert on digital assets, warns that approval of these amendments will lead to chaos in Spain’s tax system for crypto investors, creating complicated situations for both private and corporate holders of cryptocurrencies.

Where the capital will “go”

While Spanish lawmakers experiment with taxes, their neighbors offer investors more comfortable conditions. The result is predictable: capital, as always, flows where it is valued and protected, not where the state seeks to maximize revenue at any cost. For Spain, this is a signal: if the tax policy is not adjusted, the country risks losing part of its cryptocurrency capital, investors, and technological initiatives to more friendly jurisdictions.

✅ Conclusion

For crypto investors in Spain, these changes mean: they need to revise strategies, consider the risk of high tax pressure, and be prepared for additional bureaucratic obstacles. Those who are used to working with crypto assets long-term may face serious financial consequences. At the same time, countries with low or zero taxation continue to attract capital, offering a safe haven for digital investments.