Crypto venture capital funds: tax guide for the Spanish investor

Venture capital specialized in crypto and blockchain has experienced a boom between 2020 and 2024. Funds such as a16z Crypto, Paradigm, Multicoin Capital or Blockchain Capital have raised billions to invest in Web3 startups. In Spain there are also local funds that invest in crypto and blockchain technology.

What is a crypto venture capital fund?

A venture capital fund (FC) is a collegiate vehicle that:

1. Raise money from investors (LPs or Limited Partners).
2. Invest in early stage startups or tokens.
3. Generates returns when these investments are sold (exits), launched on the market (TGE) or there are dividends.

The difference with a collective investment fund (UCITS) is that CFs have less liquidity, longer lock-up periods and are subject to different regulation.

Regulatory framework in Spain

Spanish venture capital funds are regulated by Law 22/2014 and supervised by the CNMV. Foreign funds (Luxembourgers, Cayman Islanders, etc.) have their own regime.

Spanish venture capital funds with crypto exposure

• They must register with the CNMV as ECR (Venture Capital Entities).
• They can invest in digital assets (including Bitcoin, project tokens) if their investment policy contemplates it.

Taxation of the LP (investor) in the fund

1. Taxation of fund distributions

The returns of a venture capital fund for the individual investor can be:

a) Capital distributions (return of shares):

• They are not taxable income until they exceed the initial investment.
• When they exceed the cost: capital gain.

b) Fund dividends:

• If the fund distributes dividends (uncommon in VC) → return on capital.

c) Exit return (sale of fund shares):

• When liquidating the fund or selling your shares → GPO.
• Base: sale price of the shares − acquisition cost.

2. Tax advantage of venture capital funds

FCRs under Law 22/2014 may have tax benefits:

• 99% exemption for capital gains derived from the transfer of shares in the FCR, under conditions.
• Only applies to legal entities that own >5% for more than 1 year. NOT to natural persons directly.

For individuals investing in FCR: standard GPO taxation of savings (19-28%).

3. Regime of venture capital entities (participates)

If the fund invests in a crypto startup that then does TGE (Token Generation Event):

• The fund receives tokens instead of shares.
• The value of those tokens can be very volatile.
• The fund consolidates the value to calculate the return of the LP.

Taxation of fund tokens: Web3 complexity

Crypto FCRs often receive tokens instead of equity. This creates an additional layer:

The background:

• Receive protocol tokens from the participated projects (sometimes with cliff/vesting).
• Tokens are counted in the NAV of the fund.
• When distributing tokens to LP → depends on the fund structure.

The LP:

• If you receive tokens directly → acquisition cost = value in EUR at the time of distribution.
• If the fund sells the tokens first and distributes USD/EUR → the LP receives money (standard GPO).

SAFEs and token warrants (crypto agreements)

On Web3, funds frequently invest through SAFEs (Simple Agreements for Future Equity) or their token equivalents:

• SAFT (Simple Agreement for Future Tokens): agreement to receive future tokens.
• Token warrants: right to buy tokens at a fixed price.

For the LP, these instruments do not generate income until they are tokenized and distributed by the fund.

Crypto funds abroad: Model 720 and DAC8

If you invest in a crypto fund based in Cayman Islands or Luxembourg:

• Form 720: if the value of the shares exceeds €50,000 → mandatory declaration.
• DAC8: funds that hold crypto are in the scope of the information exchange directive.

EIS/SEIS Spanish equivalents: the Deduction for Investment in Startups

The Startup Law (Law 28/2022) created deductions in personal income tax for investment in emerging startups:

• Deduction of 50% of the investment (up to €100,000/year base).
• Only applies to certified Spanish startups.
• Crypto funds generally DO NOT qualify directly (the investor invests in the fund, not directly in the startup).

Crypto funds tax summary table

Updated: April 2026 | Fiscal year: 2025