How to Report NFT Profit in Spain: Your Complete 2024 Tax Guide

Understanding NFT Taxation in Spain

Non-Fungible Tokens (NFTs) have exploded in popularity, but many Spanish investors overlook their tax implications. Whether you’re an artist, collector, or trader, profits from NFT sales are subject to Spanish tax laws. This guide breaks down exactly how to report NFT gains correctly to avoid penalties from the Agencia Tributaria (Tax Agency).

Are NFT Profits Taxable in Spain?

Yes. The Spanish Tax Agency treats NFT transactions as taxable events. How your profits are taxed depends on:

• Activity frequency: Occasional sales vs. habitual trading
• Profit source: Capital gains or business income
• Residency status: Spanish residents pay tax on worldwide NFT profits

Classifying Your NFT Profits: Capital Gains vs. Income

Correct classification determines your tax rate:

• Capital Gains (Rendimientos del Capital Mobiliario):
  Applies to occasional sales (e.g., selling a purchased NFT). Taxed at 19%-26% based on profit amount.
• Business/Professional Income (Rendimientos de Actividades Económicas):
  For habitual creators/traders. Profits added to annual income, taxed at 19%-47% + regional rates.

Step-by-Step Guide to Reporting NFT Profits

1. Calculate Your Gain Accurately

Profit = Sale Price – (Acquisition Cost + Associated Fees)
Track all blockchain transaction fees and platform commissions.

2. Determine Tax Form

• Capital Gains: Modelo 100 (Annual Income Tax Return)
• Business Income: Modelo 130 (Quarterly Payments) + Modelo 100

3. Declare During Tax Period

File between April-June annually. For gains over €200,000, use Form 720 for overseas crypto holdings.

4. Pay Applicable Taxes

Capital gains tax rates:
• €0-€6,000: 19%
• €6,001-€50,000: 21%
• €50,001+: 26%

Key Deductions and Allowances

Reduce taxable profits with:

• Gas fees and platform commissions
• Wallet maintenance costs
• Professional expenses for creators (software, hardware)
• €2,500 annual allowance for capital gains under specific conditions

5 Common Reporting Mistakes to Avoid

1. Not declaring small or “lost” transactions
2. Mixing personal and business NFT activities
3. Forgetting foreign platform earnings
4. Incorrect cost basis calculation
5. Missing quarterly payments for professional traders

NFT Tax in Spain: Frequently Asked Questions (FAQ)

Do I pay tax if I sell NFTs at a loss?

Losses can offset capital gains from other assets. Report them on Modelo 100 to carry forward for 4 years.

How are NFT airdrops and staking rewards taxed?

Considered miscellaneous income. Taxed at 19%-26% based on market value when received.

What if I bought NFTs with cryptocurrency?

Both the crypto disposal (taxable event) and NFT acquisition must be reported. Use EUR value at transaction time.

Are there penalties for late NFT tax filing?

Yes: 5%-20% of owed tax + monthly interest. Deliberate concealment may trigger fines up to 150%.

Should I hire a crypto-specialized gestor?

Highly recommended for complex cases. Average cost: €200-€500 but ensures compliance with evolving regulations.

Always consult a Spanish tax advisor for personalized guidance, as laws evolve rapidly. Keep detailed records of every transaction – your blockchain history is your audit trail!