Dogecoin and Litecoin: taxation of classic memecoins and altcoins
Dogecoin (DOGE), Litecoin (LTC), Bitcoin Cash (BCH), and other first-generation altcoins are cryptocurrencies without additional staking or complex DeFi functionality. Its taxation is the simplest in the crypto ecosystem.
The general regime: buy and sell
For DOGE, LTC, BCH and similar:
- Purchase: Acquisition cost = price paid (including commissions). Write down the date.
- Sale: Transmission price - Acquisition cost (FIFO) = Capital gain or loss.
- Tax base: Savings base.
- Tax rate: 19% (≤€6,000) / 21% (€6,001-€50,000) / 23% (€50,001-€200,000) / 27% (€200,001-€300,000) / 28% (>€300,000).
DOGE example:
- You buy 10,000 DOGE at €0.05 → cost: €500
- You sell 10,000 DOGE at €0.12 → income: €1,200
- Gain: €700 → tax at 19% = €133
Tips and payments in Dogecoin
Dogecoin started as an internet tipping currency. If you receive DOGE as a tip:
- If you work: Performance of work (if it belongs to your employer) or performance of economic activities (if it belongs to clients of your activity).
- If it is a gift from strangers: Capital gain or, arguably, donation subject to ISD.
- Valuation: Market price at the time of receipt.
Forks: Bitcoin Cash, Bitcoin SV, etc.
If you had Bitcoin when the forks that created BCH (August 2017) or BSV (November 2018) occurred:
- The tokens received = capital gain at the time of receipt.
- Problem: At the time of the fork, BCH and BSV did not have a set price. Many advisors applied 0 price at the time of fork and declared profit when selling them.
- Prudent criterion: price of the first available public quote.
Is DOGE a speculative asset?
The AEAT does not distinguish between "serious" cryptocurrencies and memecoins for tax purposes. DOGE is taxed exactly the same as BTC.
Dogecoin on Elon Musk and risk of manipulation
Elon Musk's tweets caused 1,000% increases in DOGE in 2021. Fiscally nothing changes: profit is profit. However, you must be prepared to justify large-scale operations to the Treasury in a short time.
Litecoin (LTC): the "silver to Bitcoin's gold"
LTC follows the same tax regime as BTC. Additional points to note:
- LTC has the MWEB (MimbleWimble Extension Blocks) protocol that adds optional privacy. If you use MWEB, also keep full records of transactions.
- LTC can be received as payment for goods/services: performance of economic activities.
First generation altcoins and the risk of obsolescence
A relevant question: if an altcoin disappears, the exchange goes bankrupt or becomes illiquid:
- You cannot declare loss without formal transmission.
- If the exchange goes bankrupt (like FTX with some altcoins): the AEAT has planned a procedure for cases of insolvency of the custodian.
Registration tools
- Coinbase/Kraken CSV: Operation history export.
- Koinly/CoinTracker: Automatic FIFO calculation for multi-altcoin wallets.
Updated: April 2026 | Fiscal year: 2025