Spain Takes Aim at Crypto With New 47% Taxation Proposal

Spain is weighing a major change to how the country taxes digital assets. A proposal submitted by Sumar, a left-leaning political alliance within the governing coalition, pushes for a higher income tax rate on crypto gains and tighter rules for asset seizure. The plan has drawn attention in both political and crypto circles, largely because the top rate could reach 47 percent for individual investors.

Good to Know

• Sumar wants crypto gains taxed under personal income rules instead of wealth-return rules
• Top rate on non-financial digital asset gains could rise to 47 percent
• Proposal includes a requirement for all crypto assets to be eligible for seizure

Sumar submitted amendments targeting three key laws: the General Tax Law, the Income Tax Law, and the Inheritance and Gift Tax Law. Under their plan, profits from non-financial digital assets would no longer fall under Spain current wealth-return framework, which caps out at 30 percent. Instead, crypto profits would join the standard income tax table, where high earners face a 47 percent top bracket.

Companies would continue paying a 30 percent rate on crypto-related income. Individual taxpayers, however, would feel the largest impact under the new framework.

The push centers on the view that crypto activity increasingly mirrors other income-producing activities and should not receive what critics call “preferential treatment.”

Why Sumar Is Driving the Proposal

Sumar, formed as a broad left-wing alliance, held 26 of the 350 seats in the Spanish Congress at the start of 2024. The group is part of the national government alongside the Socialist Party. By filing the proposal, Sumar aims to reposition digital-asset taxation inside a traditional income-based model rather than treating crypto gains like passive wealth returns.

The plan also links to broader concerns raised by Spanish regulators about market transparency, risk communication, and consumer protection.

New Powers Proposed for Regulators

The proposal would give the Spanish securities regulator, CNMV, new responsibilities. One requirement calls for a “risk traffic-light system” that must appear on trading platforms so users can quickly see risk levels associated with different digital products. Sumar argues that clearer signaling may help reduce confusion among inexperienced traders.

Another part of the plan classifies all crypto assets as subject to seizure in legal or administrative actions. That change would bring crypto holdings under the same enforcement umbrella as traditional financial assets.

What the Plan Could Mean for Local and International Investors

If adopted, the 47 percent rate could place Spain among the higher-tax jurisdictions in Europe for individual crypto gains. The country currently taxes wealth return profits at rates that top out at 30 percent, a structure many crypto users factor into their investment planning. A shift to the income tax framework would alter that calculation, especially for traders with large positions in digital assets.

Meanwhile, companies operating in the sector would see no change to their 30 percent rate, keeping the corporate side of the ecosystem stable.