Crypto lending and borrowing in Spain: tax treatment
Lending (earning interest): Interest = capital income at market value on receipt (19-28% savings rate)
Borrowing (depositing collateral):
- Loan itself = not a taxable event
- Interest paid = not deductible for individuals
- Collateral liquidation = capital gain/loss (taxable sale event)
- Loan repayment = not a taxable event
Failed CeFi platforms (BlockFi, etc.): Trapped crypto = capital loss in year platform declares insolvency.
kointax supports Aave, Compound, Nexo interest classification and collateral liquidation events.