The theft of crypto-assets as a capital loss in Personal Income Tax (IRPF)

The growing adoption of crypto-assets has brought about new tax scenarios, including the impact of the theft of these assets. Recently, the Directorate General of Taxes (DGT) has addressed the possibility of accounting for the theft of bitcoins as a capital loss in Personal Income Tax (IRPF).

What the DGT has ruled

The DGT establishes that the theft of crypto-assets constitutes a capital loss, as it represents a negative variation in the value of the taxpayer's assets. Since it does not involve a transfer (sale or exchange), this loss is not included in the savings tax base but must be accounted for in the general tax base.

However, the ruling emphasizes an essential condition: the loss must be duly justified. According to Article 33.5.a of Law 35/2006, losses that do not have the necessary documentation for accreditation will not be accounted for. The Tax Administration is responsible for assessing whether the evidence provided is sufficient to confirm the occurrence of the event.

What this means for you

If you are an individual who suffers the theft of crypto-assets, you have the possibility of including that economic impact in your tax return to reduce your general tax base. However, this right is not automatic. The burden of proof lies with the taxpayer, who must provide evidence that allows the Administration to verify the loss unequivocally.

What you should do

In the event of such an incident, it is fundamental to collect all legally admissible evidence that allows for the accreditation of the theft. This includes, among others, technical documentation from platforms, transaction records and, especially, the corresponding report to the competent authorities. The sufficiency of this evidence will be the determining factor for the Administration to accept the deduction of the capital loss.