CMS Expert Guide on Taxation of Crypto-Assets

No. Taxation of crypto-assets is based on general principles included in the different tax laws in force within the Spanish legal framework. Due to the above, income or tenancy of crypto-assets is taxed by Personal Income Tax (PIT) or Net Wealth Tax (NWT), or the Solidarity Tax on Large Fortunes by applying the general rules included in the corresponding tax laws. Notwithstanding so, there are some obligations of reporting crypto-assets held in Spain and abroad:

• Reporting obligations: Royal Decree 249/2023 of 4 April set out the obligations introduced by Law 11/2021 (Articles 39 bis, 39 ter and 42 quater of the RGAT), bringing the reporting requirements for crypto-assets into line with those for securities, accounts or property.
• MiCA regulatory framework: Regulation (EU) 2023/1114 (MiCA) is fully applicable (its rules on crypto-asset service providers (CASPs) from 30 December 2024) with the CNMV being the competent authority in Spain. MiCA is a financial regulation, not a tax regulation, but it sets out definitions and applies to specific entities (e.g. the concept of a crypto-asset in Article 3.1.5).
• DAC8 / CARF: Directive (EU) 2023/2226 (DAC8) incorporates the OECD’s framework into the automatic exchange of information and is applicable from 1 January 2026. Its transposition into Spanish law is currently underway (draft bill amending the Spanish General Tax Law and draft royal decree and ministerial order implementing it), and it will replace a significant part of the reporting framework set out in Law 11/2021.

The general rules apply. In this regard, for tax purposes, cryptocurrencies are understood to consist of deregulated digital or virtual assets, supported in a single digital registry called blockchain, in which there is no intermediation, and which is not controlled by a central issuer. The price of this asset is determined by supply and demand. As such, cryptocurrencies are not treated as legal tender or foreign currency in Chile, nor are they treated as foreign exchange transactions. Therefore, they are considered as assets, and are subject to capital gains tax under the general rules.

Exchange of crypto-assets for FIAT currency is taxed, in general terms, as a capital gain or loss for PIT purposes. Said gain or loss will be included in the PIT saving base, being taxed at rates ranging from 19%-28%. The taxable base will be determined by the difference between the sale proceeds and the acquisition value of the crypto-assets. However, if the taxpayer organises his/her own material and/or human means for carrying out a trading activity, said income could be taxed as income deriving from an economic activity.

It is taxed under the general capital gains rules. The purchase of a cryptocurrency will entitle the purchaser to invoke the inflation-adjusted acquisition cost as a tax cost against the sale proceeds.

Yes, taxation will be the same as the one disclosed in Q2 above.

No, as the Chilean tax authority has expressly stated that cryptocurrencies are not treated as currencies, but as digital assets. Therefore, the Chilean tax authority has interpreted that neither bitcoin nor any other digital asset would be considered as legal tender or foreign currency.

The exchange of cryptocurrencies for other goods or services would most likely be treated as a barter agreement. The tax cost would be deducted at the level of the purchaser of the good or service. Capital gains tax could be triggered.

In general terms, the criterion followed by the General Directorate of Taxes establishes that an individual exchanging/selling crypto-assets for himself/herself will be qualified as a casual trader, while a professional trader will render services such as buying/selling crypto-assets on behalf of third parties or mining. Under this scenario, for PIT purposes professional traders will obtain income deriving from a business activity taxed at general rates ranging from 17.50%-54%, while casual traders will obtain capital gains taxed at saving rates ranging from 19%-30%.

Individuals will be taxed on the sale of cryptocurrencies, and the applicable tax rate would range from 0-40%, as the general equivalence surcharge will be applied.

They start to qualify as a professional activity when they become an intermediation or brokerage service carried out through a platform with the aim of facilitating the signing of a contract between two parties. In this case, VAT applies in accordance with Chilean law, and a tax invoice or receipt subject to VAT must be issued accordingly.

In general terms, losses generated by a PIT taxpayer from the exchange/sale of crypto-assets could be offset with other capital gains generated in the same fiscal year. The taxable excess, if any, could be offset with a positive net result obtained in said fiscal year from income derived from capital movable assets (e.g. dividends or interests) in a maximum amount of 25% of the taxable positive income. If there are capital losses after said offset, said losses can be offset within the subsequent  4 fiscal years applying the same rules.

Although there is currently no explicit regulatory provision on how capital gains obtained from cryptoassets must be offset, the GDT has issued some bining rulings related to the tax treatment of transactions involving crypto-assets. Among the most recent is binding ruling V0491-26, which confirms the need to determine capital gains and losses separately for each type of cryptocurrency.

In this regard, the GDT reiterates, in line with the criteria already established in binding ruling V0525-25, that cryptocurrencies of the same type constitute fungible intangible assets, as they originate from the same computer protocol and share identical economic and functional characteristics. As a result of this fungibility, all units of the same cryptocurrency are considered homogeneous and fully exchangeable with one another for tax purposes.

Furthermore, in accordance with the criteria reiterated by the GDT in binding rulings V1604-18, V0975-22 and V0525-25, when partial disposals are made of cryptocurrencies of the same class acquired at different times, the FIFO (first in, first out) method must be applied, with the units acquired earliest being deemed to have been disposed of first. Consequently, the calculation of capital gains or losses must be carried out individually for each cryptocurrency, identifying the corresponding acquisitions and transfers in accordance with this method.

In the case of individuals, losses made on crypto-assets may offset gains of crypto-assets. Losses from crypto-assets may also offset gains from the sale of other assets, such as stock or equity.

Companies subject to the general tax regime that sell crypto-assets may offset losses against all income for tax purposes.

In general terms, 4 fiscal years.

In the case of individuals, in the year in which they are generated. In the case of companies, losses can be offset indefinitely.

NFTs are, in general terms, taxed in the same way as crypto-assets. However, a case-by-case analysis should be made since accounting or tax differences could arise under certain circumstances.

Yes, the Chilean tax authority has interpreted Non-Fungible Tokens to be treated in the same way as cryptocurrencies. Additionally, stablecoins are also interpreted by the Chilean authority as another type of crypto-asset whose price is associated with the value of a legal tender, such as the US dollar.

In general terms, mining is taxed as an income deriving from an economic activity for PIT purposes. Said income is included in the PIT general base, being taxed at rates ranging from 19%-50%.

The Chilean tax authority has understood the mining of cryptocurrencies as the process of validation of transactions and creation of new blocks in a blockchain, carried out through specialised computer equipment, resulting in an automatic reward, constituting a form of acquiring cryptocurrencies, an activity that can be carried out by a natural person or under the legal form that the taxpayer deems appropriate.

The tax treatment of the acquisition of cryptocurrencies through mining must be distinguished from that corresponding to the capital gain obtained after their sale.

With regard to the former, the acquisition of cryptocurrencies through mining constitutes a capital gain for the person carrying out this activity, considering that the use of assets predominates over the effort of the individual in the development of this activity, the income obtained is classified as capital income and not as labour income. For individuals, they will be subject to an income tax of 25%, which will constitute a credit against annual income taxes, which are levied at marginal rates ranging from 0 to 40%.

Companies subject to the general regime will be taxed at a rate of 27%.

Regarding the valuation of cryptocurrencies received for mining, the average market value in Chilean pesos of the cryptocurrency or fraction thereof received for mining on the day it was obtained must be considered. Such value will be subject to tax, after deduction of the expenses incurred to obtain it. If the sale is made by a company, for the purposes of determining the higher value, the cost will be determined using the FIFO method, although the taxpayer may choose to use the weighted average cost method instead. On the other hand, if the sale is made by individuals, the higher value will be subject to the final tax payment, and in this case, the acquisition cost will be duly adjusted.

As an example, disbursements for electricity, purchase of computer equipment, refrigeration systems, among others, may be deducted as a tax expense according to the Chilean tax authority.

In general terms, income obtained from staking is taxed as movable capital income for PIT purposes. Said income is included in the PIT saving base, being taxed at rates ranging from 19%-28%.

New cryptocurrencies acquired as a return from holding cryptocurrencies previously acquired in a virtual wallet, or otherwise, will be considered as capital gains subject to a general rate of 25% for individuals, and 27% for legal entities subject to the general regime. This gain will be taxed on an accrual basis in most cases. Exemptions may also apply.

If the acquisition of cryptocurrencies via airdrop or staking has been obtained for free, the acquisition cost will be zero.

No different tax returns are foreseen for said specific activities, but all of them could trigger Corporate Income Tax (CIT) or PIT if any income is obtained. For example:

• any income obtained in case of airdrops or hard forks, or as a consideration from professional activities or for playing games, should be taxed by PIT as a capital gain, as confirmed in binding ruling V0648-24 not deriving from a transfer of assets; said gains are included in the PIT general base, being taxed at general rates ranging from 17.50%-54%.
• farming, lending or yielding are taxed as staking, i.e. as movable capital income for PIT purposes, being taxed at saving rates ranging from 19%-30%.

As indicated above, all income derived from cryptocurrencies will be subject to taxation under the general rules.

The Chilean tax authority has interpreted that for cryptocurrencies obtained for free through staking or airdrop operations that are subsequently sold, the income obtained will be subject to taxation under the general rules.

As disclosed above, in general terms income obtained from crypto-assets, or the main tenancy of such assets, could be taxed using regular Spanish taxes (e.g. PIT, CIT or NWT). Thus no different tax obligations should arise in case of income/tenancy of crypto-assets in comparison with other assets.

Notwithstanding the above, the Spanish Government recently approved a Royal Decree establishing that PIT and CIT taxpayers should disclose (on a yearly basis) certain information related to crypto-assets held in Spain (only applicable for entities or professionals) or abroad if certain requirements are met (mainly when said crypto-assets jointly exceed EUR 50,000). Said information should be disclosed by filing a specific tax return (tax forms 171,172 and 721). In this sense, specific reporting obligations are established via three forms:

• Form 172, informative declaration on balances in virtual currencies (to be completed by resident providers/custodians).
• Form 173, information return on transactions involving virtual currencies (to be completed by resident supply/custodial service providers).
• Form 721, informative return on virtual currencies held abroad, for resident holders where the aggregate balance as at 31 December exceeds €50,000 (self-custody is generally not included)

Yes, the filing of affidavits will apply.

Income generated from the sale or disposal of crypto-assets should be declared using Form 22. This form is used to file the annual income tax return for each tax year. It is important to clarify that this requirement does not apply if crypto-assets are held in a digital wallet, but only when income is generated (for individuals).

In addition, and in relation to the provisions of number 4 above, intermediaries of digital assets are required to file annually the sworn declaration form No. 1891 regarding ‘transactions of purchase and sale of shares in public limited companies, other securities and digital assets, and other transactions involving these securities, carried out through stockbrokers, securities agents, currency exchanges and other intermediary entities (...)’. Through this form, they must report the transactions of purchase and sale of digital assets carried out through their clients' accounts.

In principle, we see no relevant tax implications different from those described in the questions above. However, certain consequences with regard to VAT or Business Activity Tax could arise from carrying out professional activity with crypto-assets (e.g. mining or sale to third parties).

Donations of crypto-assets are generally not eligible for the tax advantages of donations.