Spain is considering a major overhaul of its cryptocurrency tax structure, with the Sumar Parliamentary Group proposing amendments that would sharply increase taxes on digital-asset gains and tighten oversight of crypto service providers. The reform package, currently before the Congress of Deputies, seeks to modify three key tax laws and impose stricter rules on how crypto profits are calculated, declared, and monitored. If lawmakers give their approval, Spain could become one of the most heavily regulated crypto jurisdictions in the European Union.
The centrepiece of the proposal is a plan to shift crypto gains away from the current “savings tax base,” which tops out at 30 per cent, and move them to the general personal income tax base. Under this system, high-income earners could see rates rise to as much as 47 per cent. Sumar also wants corporations to apply a flat 30 per cent tax on all crypto-related gains. Tax specialists say the change would mark a significant departure from how Spain treats traditional investments, effectively placing crypto earnings in the same category as regular income rather than capital gains.
The push has generated fierce criticism. Economist and tax advisor José Antonio Bravo Mateu described the attempt as a clear effort to discourage investment in Bitcoin, Ethereum, and other digital assets. His warning carries echoes of India’s experience. In 2022, India adopted a strict crypto tax regime, including a 30 per cent tax on gains and a 1 per cent TDS on transactions. Many Indian traders responded by shifting activity offshore, causing domestic exchanges to suffer sharp drops in liquidity and overall activity. Analysts caution that Spain could face a similar outcome if the top tax rate is raised to 47 per cent.
Another part of the reform would introduce a “crypto traffic light” warning system under the supervision of the National Securities Market Commission. Investor platforms would display colour-coded labels indicating the risk level of each cryptocurrency, similar to warnings already used for complex financial instruments. Critics, however, argue that crypto markets are too diverse to be accurately captured by simplified visual indicators.
A more contentious change involves classifying all crypto assets as seizable property. Legal experts say the idea is challenging to implement in practice, particularly because many tokens are held on foreign platforms or in self-custody wallets, where authorities have no access to the private keys. Lawyer Chris Carrascosa dismissed the measure as unenforceable and warned that it would place domestic service providers in untenable situations when asked to execute seizure orders.
Spain already struggles with unclear crypto tax rules. Earlier this year, a trader received a €9 million bill for a transaction that generated no profit, highlighting inconsistencies in the current system. While Sumar pushes for tougher measures, another camp of tax inspectors has proposed granting Bitcoin its own special, lighter tax regime—adding yet another dimension to the debate.
As lawmakers evaluate the proposed amendments, the crypto sector is bracing for what could become one of the most consequential shifts in Spain’s digital-asset policy. Whether the reforms bring long-awaited clarity or deepen existing confusion remains to be seen.
