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V3203-23 12 December 2023 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · criptomonedas

Cryptocurrency losses incurred before Spanish tax residency not deductible in income tax

A Peruvian taxpayer lost money in a cryptocurrency scam in 2019 and sold similar assets after moving to Spain in 2022. The tax authority states that losses incurred while not a Spanish tax resident cannot be offset, and the sale of cryptocurrencies after arrival is treated as income from savings.

The question raised

Question posed: Taxation of the gain obtained from the sale of cryptocurrencies and the possibility of computing the loss of cryptocurrencies due to fraud for Personal Income Tax (IRPF) purposes.

The DGT's ruling

Losses incurred by a taxpayer who is not a tax resident in Spain cannot be computed for Personal Income Tax (IRPF) purposes. The sale of cryptocurrencies in exchange for fiat currency, provided it is not part of an economic activity, generates a capital gain or loss. These gains must be calculated independently for each type of cryptocurrency and constitute savings income. The acquisition and transfer value is determined by the actual amount of the transaction.

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