Bitcoin losses tax rules clarified in Spain

Europe Spain Taxes

The Spanish tax authorities have clarified how the country’s existing tax laws should be applied to losses incurred by the collapse of a bitcoin exchange, the result of a scam or a situation of insolvency.

Following a question from a bitcoin investor who allegedly lost a large amount of money in a bitcoin theft, Spain’s Dirección General de Tributos (DGT) – the Spanish tax authority –  clarified that current Personal Income Tax laws apply to bitcoin-related losses.

To be considered capital loss for tax purposes, bitcoin losses must meet specific conditions such as approval of the debt reduction by a judge, debtor’s bankruptcy and other.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

Leave a Comment

Coinlaw Newsletter

Whether you are a law firm, founder gearing-up for a token offering, or a crypto currency trader, subscribe to the biggest crypto legal newsletter to be informed of the latest developments in each and every jurisdiction