Country overview

You could call Spain one of the EU's second-tier countries in the field of crypto adoption. Many investors and users are here, and Spain already has a licensing procedure. At the same time, it is not as progressive as France, Portugal, Germany, and the United Kingdom. Spain also has relatively high tax rates and also imposed wealth tax.

Spain has a safe place security level according to our rating. It has 64.2 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 0.6 per 100,000 inhabitants a year. Story of firearm-related death (3) 0.57 per 100,000 inhabitants a year.

Crypto payments are legal in Spain based on Yoigo (4). One of the proofs (5) that crypto payments are possible in Spain is that the mobile operator Telefónica is accepting crypto payments.

The interpretation of the Spanish labor law says (6) that it’s possible to pay salaries only in legal tender. Crypto salaries are not permitted since payment instruments, according to local regulations, must have a stable price and not be volatile. However, since crypto payments are legal in Spain, employees can get additional rewards.

There has yet to be a law (7) on cryptocurrencies in Spain. However, an AML law (8) was approved by the local parliament in 2020.

CMNV (9) is the Spanish Securities Regulator, which regulates cryptos. Also, some regulations are issued by the Bank of Spain.

The Register of Virtual Asset Service Providers (VASP) was launched (10) by the Bank of Spain in October 2022. The bank clarified the register volume and determined the types of companies and individuals required to register. Bank of Spain announced (11) that all crypto platforms offering their services in Spain, including those outside the country, must be registered.

A list of operating VASPs was created(12) by the Bank of Spain in October 2021. According to White Case (13), the procedure for their registration is described in The AML Law, which means they are subject to the supervision of the Spanish Money Laundering Prevention Agency ("SEPBLAC").

Based on CincoDias (14), are 67 platforms in the register as of June 2023 (15).

Spanish security regulator, the CNMV, has acknowledged (19) that UCITS can invest in cryptocurrencies.

If you are interested in information about mining, you can read about it in the Freeman law article(20) and this mining guide (21). There are no cases (22) of ICOs in the country.

Based on AML law (23), Spanish residents need to “provide detailed information on balances and transactions carried out inside and outside of Spain” - including crypto transactions.

According to Global Legal Insights (24), “Crypto assets are added within the list of goods that must be reported in the Informative Declaration on Assets and Rights located abroad”.

You may get more insights about crypto taxation in Spain in the Koinly Tax Guide(25).

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)List of countries by firearm-related death rate

4) YOIGO. Cobrar en criptomonedas: ¿es legal o ilegal en España? Getting paid in cryptocurrencies: is it legal or illegal in Spain? March 16, 2022. Article

5)Bitcoin magazine. Spain’s Largest Telecom Company, Telefónica, Now Accepts Bitcoin and crypto Payments. Shawn Amick. September 30, 2022. Article

6)GARRIGUES. IS IT POSSIBLE TO PAY AN EMPLOYEE’S SALARY IN CRYPTOCURRENCY? Vanessa Sánchez Balboa. February 24, 2022. Article

7 and 19)The Law Reviews. The Virtual Currency Regulation Review: Spain. Pilar Lluesma. Rodrigo and Miguel Pérez. Uría Menéndez. 07 September 2022. Article

8 and 23)CONGRESO DE LOS DIPUTADOS. CONGRESS OF DEPUTIES. PDF-file

9)La Comisión Nacional del Mercado de Valores (CNMV). The National Securities Market Commission (CNMV)

10)bitcoin.news. Bank of Spain Opens Mandatory Registry for VASPs. Sergio Goschenko. October 26, 2021. Article

11 and 12)Banco de España. Registro de proveedores de servicios de cambio de moneda virtual por moneda fiduciaria y de custodia de monederos electrónicos. Registration of service providers for exchanging virtual currency for fiduciary currency and custody of electronic wallets.

13)White case. Spain enacts the first legislation to regulate cryptocurrencies. Juan Manuel de Remedios. Esther Gabilondo. November 23, 2021. Article

14)Cinco Dias. El rompecabezas de la actividad de Binance en España: conflictos con la CNMV y sombras regulatorias. The puzzle of Binance's activity in Spain: conflicts with the CNMV and regulatory shadows

15)Banco de España. Registro proveedores de servicios de moneda virtual y monederos electrónicos. Registration of virtual currency service providers and electronic wallets.

16)bitcoin.com.Bank of Spain Approves Its First VASP License. Sergio. February 18, 2022. Article

16¹)El registro de proveedores de 'criptos' del Banco de España ya cuenta con 15 empresas

17)bitcoin. Com. Binance Gets a VASP License From the Bank of Spain. Sergio Goschenko. July 11, 2022. Article

18)bitcoin.com. Eurocoinpay Partners With Mastercard to Launch One of the First Cryptocurrency-Based Cards in Spain. Sergio Goschenko. September 20, 2022. Article

20 and 30)Freeman law. Spain and Cryptocurrency.

21)Freeman law. MINING EXPLAINED: A DETAILED GUIDE ON HOW CRYPTOCURRENCY MINING WORKS.

22 and 24)global legal insights. Blockchain Cryptocurrency Laws and Regulations 2023 | Spain.

25)Koinly. Spain Crypto Tax Guide 2023. Michelle Legge. May 30, 2023. Article

26 and 28)PWC. Spain. Individual - Taxes on personal income

27)balcells group.Impuestos sobre Criptomonedas en España: Cuánto y Cómo Pagar. Taxes on Cryptocurrencies in Spain: How Much and How to Pay.

29)Finsight. Spanish Cryptoasset Landscape: New Legal Developments towards a More Regulated Sector. PAULA DE BIASE AND JAVIER BLÁZQUEZ. May 19, 2021. Article