Crypto is proposed to be subject to Net Wealth Tax in Spain

In the fifth section of the White Book for the Spanish tax reform in April 2022, the tax committee appointed to review the Spanish tax system proposes to extend the scope of the net wealth tax to crypto assets, which will also be introduced with specific valuation rules, either the valuation of the underlying asset or the market price. Cryptopians will pay an annual Net Wealth Tax amounting to 0% - 3.5% on the value of cryptos depending on their income and autonomous regions they are in.

Net wealth tax (Impuesto sobre el Patrimonio) was introduced by Royal Law-Decree 13/2011 on 17 September 2011 and now a permanent tax in the 2021 Budget Law. The tax is imposed on worldwide net wealth on behalf of the 17 autonomous regions. Exemptions include crypto assets, unquoted shares and comparable interests in companies (other than portfolio or real estate management companies) in which the taxpayers hold more than 5% of the capital and a managerial function which is the source of more than 50% of their total income. Each resident taxpayer is entitled to a standard allowance of EUR 700,000 (the allowance may vary per autonomous region).

The regions are authorized to determine their own tax rates and allowances within certain limits. The standard progressive rate table currently ranges from 0.2% (first EUR 167,129.45) to 3.5% (over EUR 10,695,996.06). Some regions have different measures imposing a nil rate on the residents of their autonomous regions such as Madrid.

The aggregate burden of income tax and net wealth tax due by a resident taxpayer may not exceed 60% of his total taxable income for income tax purposes. If it exceeds this amount, the taxpayer may reduce his net wealth tax liability by the excess amount. However, a minimum tax of 20% of the net wealth tax liability must be paid.