Wealth tax on crypto (Spain)

Spain is one of the few countries with an annual net wealth tax, the Impuesto sobre el Patrimonio. Residents include their worldwide assets, and since the 2021 anti-fraud law the rules state that virtual currencies are valued at their market value on 31 December, using the price on the exchange or a representative average. Non-residents are taxed on assets located in Spain.

The tax is assigned to the regions, which set exempt amounts, rates and reliefs; some, such as Madrid, have applied a full relief, so liability depends heavily on where the taxpayer lives. To limit that effect, Spain introduced in 2022 a national solidarity tax on large fortunes, created as temporary and later extended, which applies above a high wealth threshold and allows the regional wealth tax paid to be deducted.

Crypto adds practical problems: year-end volatility can push a taxpayer over a threshold, holdings spread across exchanges and self-custody wallets must all be counted, and the information the tax agency receives through Modelos 172, 173 and 721 makes omissions easier to detect. Thresholds and reliefs change frequently, so the current year's rules apply.