02 May 2025
Hey there, Nepali expats living in Spain! Many Nepalis are diving into crypto to invest, trade, or even send money to Nepal from Spain. But here’s the catch: Spain takes crypto taxes seriously, and as an expat, you need to stay on top of your tax obligations to avoid surprises. Don’t worry—this guide breaks down everything you need to know about crypto tax compliance in Spain, so you can keep enjoying your crypto journey with peace of mind.
Crypto might feel like a digital Wild West, but in Spain, the tax rules are clear and enforced by the Agencia Tributaria (Spain’s tax authority). If you’re a Nepali expat holding or trading crypto, you’ll need to understand what triggers taxes and how your assets are viewed. From capital gains to wealth tax, knowing the basics helps you stay compliant while managing your finances. Let’s dive into the key details to get you started.
In Spain, not every crypto move triggers a tax bill, but many do. A taxable event happens when you make a profit or dispose of your crypto. Here’s what counts:
If you sell Bitcoin for euros, the profit (sale price minus purchase price) is taxed as a capital gain, with rates from 19% to 28% based on your income.
Swapping Ethereum for Cardano? That’s a taxable event, too, based on the market value of the crypto you’re giving up.
Using Bitcoin to buy a laptop or pay for services triggers a capital gain or loss, depending on the price change since you acquired it.
Mining rewards, staking income, or getting paid in crypto (e.g., for freelance work) counts as general taxable income, taxed up to 47%.
Good news: Simply holding crypto in your wallet isn’t taxed in Spain. You only owe taxes when you “realize” a gain by selling, trading, or spending. Keep track of these events, as they’ll need to be reported on your annual tax return (Modelo 100) by June 30 each year.
Spain’s wealth tax (Impuesto sobre el Patrimonio) applies to residents whose total assets— including crypto—exceed €700,000 (or lower in some regions). Crypto is valued at its market price on December 31 each year, and you’ll need to file Modelo 714 if your assets hit this threshold. Rates range from 0.2% to 3.75%, depending on your region and net worth.
Here’s a silver lining for Nepali expats:
If you live in Madrid, you’re in luck—there’s a 100% wealth tax relief, meaning you won’t pay this tax, though you may still need to file a return if your assets exceed €2 million.
In Catalonia, the threshold is €500,000, while Andalusia offers partial exemptions. Check your autonomous community’s rules to know your obligations.
Even if you don’t owe wealth tax, you must report crypto holdings abroad (e.g., on foreign exchanges) worth over €50,000 using Modelo 721 by March 31 annually. Staying informed about these rules keeps you compliant and avoids hefty fines.
Crypto taxes can feel overwhelming, especially when you’re balancing life as an expat. Fortunately, there are tools and strategies to make compliance easier. From software to expert advice, you can streamline your tax prep and focus on growing your investments or sending funds home to Nepal. Here’s how to stay organized and minimize your tax burden.
Tracking every crypto transaction manually is a headache, but crypto tax software can save the day. Tools like Koinly, CoinTracker, or CoinLedger are designed to simplify tax reporting for expats. Here’s why they’re a game-changer:
Connect your wallets and exchanges (like Binance or Coinbase) to import transaction history in minutes.
These platforms generate reports compatible with Modelo 100 and Modelo 721, making it easy to file with the Agencia Tributaria.
They highlight losses you can offset against gains to reduce your tax bill.
For example, Koinly calculates your capital gains using Spain’s FIFO method and exports data directly for your tax return. Start with a free plan to test it out, and upgrade if you have a high volume of trades. These tools are expat-friendly, with English support, so you won’t feel lost in translation.
Spain uses the First-In-First-Out (FIFO) method, or “Primero En Entrar, Primero En Salir” (PEPS), to calculate crypto gains. This means the first coins you bought are considered the first sold when you trade or sell. Here’s how it works:
You buy 1 Bitcoin for €20,000 in January and another for €30,000 in June. In December, you sell 1 Bitcoin for €35,000. Under FIFO, your gain is €15,000 (€35,000 - €20,000), taxed at 19% to 28%.
Time your sales strategically. Selling older coins with a higher cost basis (bought at a lower price) can increase your taxable gain. If possible, sell newer coins at a lower cost to reduce your tax liability.
Keep detailed records of purchase dates and prices, as FIFO requires precise tracking. Software like CoinTracker can automate this, ensuring your calculations align with Spanish tax rules.
The Agencia Tributaria loves records, and as a Nepali expat, you’ll need to keep yours tight to avoid audits. Every crypto transaction—buys, sells, trades, or transfers—needs documentation. Here’s what to track:
Date, amount, crypto type, and euro value at the time of the transaction.
Log where your crypto is stored (e.g., exchange or self-custodial wallet like MetaMask).
Include fees or mining costs, as these can reduce your taxable income.
Apps like Blockpit offer real-time portfolio tracking and exportable reports for Spanish tax forms. Store records for at least five years, as the tax authority can request them during audits. Pro tip: Use cloud storage or encrypted drives to keep your data secure and accessible, especially if you’re moving between Spain and Nepal.
Navigating Spain’s tax system can be tricky, especially if Spanish isn’t your first language. For Nepali expats, finding a bilingual tax advisor (Nepali-speaking or fluent in English) is a smart move. They can:
Break down Modelo 714 or FIFO in terms you understand.
Suggest deductions or strategies like the Beckham Law for eligible expats, which taxes only Spanish-sourced income.
Represent you if the Agencia Tributaria questions your filings.
Platforms like TaxScouts or TaxNatives connect you with expat-friendly advisors in Spain, some offering virtual consultations.
Look for advisors familiar with crypto and cross-border finances, as they’ll understand your needs, like sending remittances to Nepal. ACE Money Transfer has 4.8+ ratings on Trustpilot with over 129,000 reviews, showing a commitment to trusted financial service.
As a Nepali expat in Spain, crypto offers exciting opportunities to grow your wealth or support loved ones back home. But with great rewards come tax responsibilities. By understanding taxable events, leveraging tools like Koinly or Blockpit, and consulting bilingual experts, you can stay compliant and avoid penalties. Whether you’re trading Bitcoin or sending funds to Kathmandu with ACE Money Transfer, keep your records tight and your taxes in check. Stay proactive, and you’ll navigate Spain’s crypto tax landscape like a pro. Inspire confidence in managing crypto and remittances smartly!
No, holding crypto isn’t taxable in Spain. You only report when you sell, trade, or use it, triggering a capital gains tax.
Yes, Spain allows crypto losses to offset gains in the same year or up to four years later, reducing your tax bill.
Not mandatory, but it simplifies reporting and payments. You can link international accounts for tax filings.
No specific exemptions exist, but the Beckham Law may reduce taxes for new residents on certain income.
Each trade is a taxable event. Calculate gains using the market value of the acquired crypto at the time.
