Spain's Sumar parliamentary group submitted amendments this month that would shift taxation of cryptocurrency profits from the savings bracket to the general income tax base, raising the top rate from 30% to 47%. The proposal targets amendments to three major tax laws and would apply a 30% corporate rate to business crypto gains while classifying all digital assets as seizable under certain conditions. Sumar, a left-wing political alliance holding 26 of 350 seats in Spain's Congress of Deputies, serves as junior partner in the governing coalition with the Socialist Party.
What Happened: Tax Structure Overhaul
The amendments filed Nov. 5 with Congress target the General Tax Law, Income Tax Law and Inheritance and Gift Tax Law. Under current rules, cryptocurrency gains fall under the savings tax base with rates capped at 30%.
The proposal would reclassify profits from digital assets not considered financial instruments as ordinary income subject to Spain's general income tax rates, which reach 47% at the top bracket.
Corporate holders would face a flat 30% tax on cryptocurrency profits. The plan also directs Spain's National Securities Market Commission to develop a visual risk assessment system displaying color-coded warnings on investment platforms. Another element in the proposal would classify all cryptocurrencies as attachable assets eligible for seizure.
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Why It Matters: Enforcement Challenges
Lawyer Cris Carrascosa claims the seizure provision is unenforceable, particularly for tokens like Tether's USDT, which cannot be held by regulated custodians under Markets in Crypto-Assets rules. She warned the measure would create chaos in Spain's crypto tax regime if approved. Economist and tax adviser José Antonio Bravo Mateu called the amendments "useless attacks against Bitcoin," arguing they misunderstand how decentralized assets work.
Bravo Mateu warned the measures may push high-net-worth holders to leave the country once Bitcoin reaches higher valuations. Legal experts note enforcement would prove difficult for self-custodied tokens or assets held on platforms outside Spanish jurisdiction.
Two Treasury inspectors, Juan Faus and José María Gentil, separately proposed a framework to tax Bitcoin differently from other digital assets, allowing taxpayers to use first-in-first-out or weighted-average methods.
The proposal contrasts with jurisdictions offering zero capital gains tax on digital assets. Spain's tax agency sent 328,000 warning notices for crypto taxes covering 2022, then issued 620,000 notices in 2024. Supporters within Sumar argue stronger rules are needed to close tax loopholes and protect retail investors in a market they view as high-risk.
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