Spain Pushes 47% Crypto Tax in What Critics Call an ‘Attack on Bitcoin’

Spain’s political debate over digital assets heated up this week as the Sumar party proposed a major change to the country’s crypto tax rules.

Specifically, the party proposes raising capital gains taxes on Bitcoin and other digital assets to 47%. The plan was added as an amendment to three main tax laws.

Meanwhile, it has faced criticism from lawyers, economists, and crypto supporters. Commentators say the action misunderstands how decentralized assets work and could push investors out of Spain.

Raising Crypto Gains to 47%

According to Spanish outlet CriptoNoticias, Sumar wants to reclassify crypto gains so they fall under the general income tax bracket instead of the current savings tax bracket.

This change lifts the top tax rate on crypto profits from 30% to 47% for individuals. Meanwhile, corporations would face a flat 30% rate.

Notably, Sumar, a left-wing political alliance and junior coalition partner, holds 26 seats in Spain’s Congress. Its plan targets the General Tax Law, Income Tax Law, and Inheritance and Gift Tax Law.

Risk ‘Traffic Light’ and Full Asset Seizability

The proposal also requires Spain’s securities regulator, the CNMV, to introduce a “risk traffic light” system for cryptocurrencies. This visual warning must appear across investor platforms, similar to hazard indicators used in high-risk investment products.

More controversially, Sumar seeks to classify all crypto assets as attachable, thereby making them subject to seizure by authorities.

Spanish lawyer Cris Carrascosa called this unrealistic, noting that assets like Tether’s USDT cannot legally be held by regulated custodians under MiCA regulations, making any blanket seizure mechanism unenforceable.

Economist Calls It Attack on Bitcoin (BTC)

Meanwhile, economist José Antonio Bravo criticized the amendments as “useless attacks against Bitcoin.” 

He argued that self-custodied Bitcoin cannot be seized or monitored the way traditional financial assets can. He warned that such measures may push high-net-worth holders to leave the country once Bitcoin reaches higher valuations.

Notably, Spain’s tax authorities have been tightening pressure on crypto users for years, issuing 328,000 tax warning letters in 2023 and 620,000 in 2024.

Meanwhile, a separate group of tax inspectors recently proposed a more favorable system for Bitcoin to allow taxpayers to use FIFO or weighted-average methods per wallet, with adjustments to prevent tax manipulation.

Japan Moves in the Opposite Direction

While Spain is pursuing an aggressive crypto tax, Japan is taking a different approach. Its Financial Services Agency wants a flat 20% capital gains tax on crypto, replacing the current system that can go up to 55%. 

This aligns crypto taxes with equities, creating a more attractive environment for investors and crypto businesses.