When are you not required to declare cryptocurrencies in personal income tax?

One of the most frequently asked questions: "Do I have to declare if I earned just a little with Bitcoin?" The answer depends on several factors. There are minimum thresholds that can free you from the formal obligation, but there are important nuances.

The general income tax declaration threshold

In general, those who:

1. Job income less than €22,000 gross per year (if they are from a single payer; €15,000 if they are from several payers).
2. Income from movable capital and capital gains subject to withholding or payment on account: less than €1,600 per year.
3. Imputed real estate income, income from movable capital not subject to withholding: less than €1,000 per year.
4. Equity losses less than €500.

##How do cryptocurrencies fit in?

Profits from the sale of cryptocurrencies are capital gains based on savings that are NOT subject to withholding. Therefore, they fall into section 3:

If the sum of your capital gains with cryptocurrencies (together with capital gains and imputed real estate income not withheld) is less than €1,000, in principle you are NOT required to declare.

Attention! This limit of €1,000 applies to net profit, not to sales volume.

The danger of volume: the obligation of information

Although you are not obliged to declare personal income tax, there may be other obligations:

• Model 172: If you operate on exchanges located in Spain (Bit2Me, etc.) with volume greater than certain amounts.
• Form 721: If you have more than €50,000 in cryptocurrencies in foreign custodians.

Practical example: I won €800 with Bitcoin

• I have income from work of €14,000 (single payer).
• I sold Bitcoin and made a profit of €800.
• Bank deposit returns: €120 (with withholding already applied).

Should I declare?

• Income from work: €14,000 < €22,000 → no obligation to declare for work.
• Capital gains + income not withheld: €800 + 0 (interest already withheld) = €800 < €1,000 → not obligatory.

Conclusion: In this case, you are not required to declare.

Is it advisable to declare even if it is not mandatory?

Yes, in many cases it is advisable to voluntarily declare:

1. If you have losses: You can only offset them against future profits if you declare them. If you do not declare, you lose the right to compensate them.
2. If you have the right to a refund: Extra withholdings applied (on payroll, for example) → declare to recover them.
3. Legal security: There is formal evidence of your situation. The Treasury cannot question years already declared once prescribed (4 years).
4. History for future years: If you have greater profits in the future, it is useful to have the acquisition history documented.

The most frequent mistake: confusing volume with gain

Let's say you sold €50,000 in Bitcoin with an acquisition cost of €49,500. The profit is only €500. You are not required to declare for these operations! But if the Treasury asks you, you need to demonstrate the acquisition cost.

This is why it is always recommended to keep records, even if you are not required to declare.

Losses: always interesting to declare them

If you lost money with cryptos, even if it is €200:

• Declare that loss.
• You can offset it with profits from the following 4 years.
• It is a "tax credit" that you should not waste.

Summary of thresholds (fiscal year 2025)

Updated: April 2026 | Fiscal year: 2025