Trading cryptocurrencies for one's own account is not an economic activity

The management of crypto-assets has raised multiple doubts regarding the nature of operations carried out by individuals. Recently, the Directorate General of Taxes (DGT) has issued a relevant ruling on the classification of these operations and their impact on the obligation to register for the Business Activities Tax (IAE).

What the DGT has ruled

The query focused on determining whether the buying and selling of cryptocurrencies carried out by a natural person for their own benefit constitutes an economic activity. After analyzing the applicable regulations, the DGT has ruled that this type of operation does not meet the necessary requirements to be considered an economic activity.

As there is no organization of material and human resources intended for the performance of an activity with profit-making purposes on a professional basis, the management of crypto-assets with own funds falls outside the scope of application of the Business Activities Tax. Consequently, there is no obligation to register for said tax for those who operate solely with their own assets.

What this means for you

This ruling has a direct impact on natural persons operating in the cryptocurrency market. If you carry out transactions with crypto-assets using your own funds, your tax treatment is governed by the rules of Personal Income Tax (IRPF) and not by the economic activities regime.

This implies that:

• It is not necessary to register for the IAE to trade cryptocurrencies personally.
• Gains or losses derived from these operations must be taxed in the savings tax base of the IRPF.
• The absence of a business or professional structure excludes the classification as an economic activity.

What you should do

Although managing cryptocurrencies does not require registration in the IAE, the obligation to declare the results of these operations in the IRPF remains intact. It is essential to maintain a detailed record of all acquisitions and disposals to correctly determine the acquisition value and the transfer value of each asset. Given that the applicable regulations are complex, it is necessary to assess each particular situation to ensure compliance with the corresponding tax obligations.