Expatriates may apply the capital gains regime even if the entity holds crypto-assets

Moving tax residence outside of Spain carries significant tax implications, especially regarding the outflow of capital and the liquidation of holdings in foreign entities. A recent resolution from the Dirección General de Tributos (DGT) has cleared up a relevant doubt regarding the nature of the assets that make up such entities.

What the DGT has ruled

The inquiry asked whether a holding in a fiscally transparent entity, whose assets consist exclusively of crypto-assets, could benefit from the special capital gains regime provided for in Article 95 bis of the Personal Income Tax Law (LIRPF).

The Administration's criteria establish that the composition of the entity's assets is irrelevant for the application of this regime. Therefore, it does not matter whether the assets consist of crypto-assets or other goods. Likewise, the DGT clarifies that the regime is applicable even if the holding corresponds to an entity under the income attribution regime.

The application of this tax benefit will depend strictly on compliance with the requirements established in the regulations, specifically regarding the market value limits and the percentage of participation required by law.

What this means for you

This resolution provides legal certainty to individuals planning to move their tax residence who hold interests in foreign companies with digital assets. The fact that the entity does not hold traditional assets, but rather crypto-assets, does not prevent access to the special exit regime.

Taxpayers in this situation may benefit from the regulations as long as they respect the valuation thresholds and ownership percentages set by the LIRPF, regardless of the volatility or the technological nature of the assets that make up the company.

What should be done

In the event of a change of tax residence process, it is necessary to perform a precise valuation of the market value of the holdings and verify that the participation limits established in Article 95 bis of the LIRPF are met. The structure of the entity must be analyzed, whether it operates under a corporate regime or an income attribution regime, to ensure that the application of the regime is correct and to avoid contingencies with the Tax Agency.