Income savings tax in Spain is similar to the capital gains tax in some other countries: it’s a tax that is triggered by the profit you make when disposing of the crypto you owned.
For the tax purposes, disposal means “getting rid” of your crypto by any of the following means:
- sell crypto for fiat currency (e.g. Euro);
: you buy Coin A for €3000 and later sell it for €4000. You'll need to pay Income savings tax on the resulting €1000 gain.
- swap, trade, exchange one coin to another;
: You bought 1 Coin A for €2000. You exchange 1 Coin A for 10 Coins B. The market value of 10 Coins B is €3000 at the moment. Since initially you paid €2000 to acquire Coin A, you use the following equation: €3000 - €2000 = €1000, which is your gain for the Income savings tax purposes.
- use crypto to buy goods and services;
: You buy Coin A for €5000. Later Coin A increases in value and you use it to buy a new device that costs €7000. The €2000 difference is your gain and you shall pay tax on it.
In this case when you are the donator of the gift, you are subject to Income savings tax since this event is considered a disposal. When you receive a gift, you are subject to Inheritance and gift tax.
Income savings tax arises when any of the above events happen. However you may get a gain or loss as a result. If you have a gain – you may pay tax on it. If you have a loss – not only you don’t need to pay tax, but rather you can reduce your tax burden in the current tax year. Note that you may only use the losses to reduce same type of tax: income savings losses v. income savings gains. You can not use income savings losses to reduce Income tax. If the loss is more than the profit, you can carry the loss to the next years.
The gain equals to the difference between the amount you sold the assets for and the amount you paid for them. If the asset was acquired for free, you shall take the market value of the asset at the date of acquisition.