Spain Proposes 47% Crypto Tax, Risk Warnings & Seizure Powers

The core of Sumar’s proposal centers on fundamentally changing how cryptocurrency investment gains are classified for tax purposes. Currently, crypto profits fall under Spain’s savings tax band, which caps at 30% for substantial gains. The amendments would move these gains into the general income bracket, potentially pushing the tax rate as high as 47% for high-income investors. This represents a 17 percentage point increase that could significantly impact returns for Spanish crypto traders and long-term holders alike.

For corporate entities holding virtual assets, the package introduces a flat 30% tax rate on gains connected to cryptocurrencies. The proposals were filed as part of Spain’s legislative process to implement the European Union’s Markets in Crypto-Assets (MiCA) framework, targeting modifications to three major laws: the General Tax Law, the Income Tax Law, and the Inheritance and Gift Tax Law. If approved, these changes would mark one of the most substantial shifts in Spain’s approach to digital asset taxation since cryptocurrencies gained mainstream attention.

Beyond taxation, Sumar’s package introduces novel consumer protection measures, including a mandatory ‘risk traffic light’ system to be built and supervised by Spain’s National Securities Market Commission (CNMV). Under this requirement, cryptocurrency platforms operating in Spain would need to display visual risk indicators tied to specific metrics, including whether a project is properly registered, subject to regulatory supervision, backed by adequate reserves, and maintains sufficient liquidity for investors.

The amendments also plan to classify all cryptocurrencies as assets that can be attached and seized by authorities, granting law enforcement and regulatory bodies new powers to confiscate digital assets in legal proceedings. This classification change represents a significant expansion of state authority over cryptocurrency holdings and aligns digital assets with traditional financial instruments in terms of legal treatment and enforcement capabilities.

These proposed changes emerge against a backdrop of dramatically increasing enforcement activity by Spain’s tax agency. For the 2022 fiscal year, the agency issued 328,000 warning notices concerning crypto-related taxes, then nearly doubled that figure the following year by sending 620,000 similar notices for the 2023 fiscal period. This enforcement surge demonstrates the government’s growing focus on ensuring compliance in the digital asset space.

The amendments now enter the political negotiation stage, where they are expected to face resistance from cryptocurrency industry groups, tax specialists, and potentially other parties in parliament. The proposals represent a comprehensive approach to cryptocurrency regulation that goes beyond mere tax collection to encompass consumer protection, market transparency, and legal enforcement mechanisms.

As Spain moves to implement the EU’s MiCA framework, these amendments signal a potentially stricter regulatory environment than the minimum requirements established at the European level. The combination of higher tax rates, mandatory risk disclosures, and enhanced seizure powers could set a precedent for how other EU member states approach cryptocurrency regulation beyond the baseline MiCA standards.