Polkadot and Kusama: staking, parachains and Spanish taxation
Polkadot is a Layer 0 blockchain that connects parachains. Its DOT token has multiple uses: staking, governance and bonding in parachain auctions. Kusama is its sister experimentation network.
Staking on Polkadot: nominators and validators
Polkadot uses Nominated Proof of Stake (NPoS):
- Validators: They run nodes, require technical knowledge and high DOT minimums.
- Nominators: They bet DOT behind validators they trust. More accessible.
Rewards are distributed approximately every era (24 hours on Polkadot, 6 hours on Kusama).
Taxation of DOT/KSM rewards
Nomination and validation rewards are taxed as income from movable capital in Spain:
- At the time of each reward (each era).
- Valued at the price of DOT/KSM at that moment.
With 365 annual rewards (DOT nominator) or 1,460 annual rewards (KSM nominator), manual calculation is infeasible. A tool that accesses the Polkadot API is recommended to extract history.
Parachain crowdloaning
To get a parachain slot, projects crowdloan: DOT holders lock (bond) their tokens for the duration of the slot (typically 96 weeks).
Tax implications of crowdloan:
-
The initial lock: Technically not a transmission. You still own the DOTs. In principle, there is no taxable event.
-
Project Rewards: Projects pay native tokens as an incentive (e.g. ACA from Acala, GLMR from Moonbeam). These tokens will be taxed as capital gains upon receipt.
-
DOT recovery at the end of the slot: When the DOTs are unlocked, there is no additional taxable event (they were yours and remain yours). The acquisition cost remains the original.
Liquid Staking on Polkadot
There are liquid staking protocols for DOT (such as Acala's LDOT or Bifrost's vDOT):
- You deposit DOT → you receive LDOT. Possible transmission.
- LDOT increases in value = accumulate rewards.
- When withdrawing LDOT → DOT: capital gain or loss.
Governance and OpenGov: implications
Participating in Polkadot governance (voting proposals on OpenGov) may require blocking DOT. This block does not generate a taxable event in itself. If voting generates rewards (as in some referendums), these are taxed as capital.
Kusama as an experimentation network
What applies to DOT applies to KSM, but Kusama tends to be more volatile, has more risk, and the staking APY can be higher. Fiscally identical to DOT.
Summary table
| Operation | Category | Event |
|---|---|---|
| DOT Buy/Sell | Capital gain/loss | When transmitting |
| Staking Rewards | Furniture capital | Every era |
| Crowdloan block | No tax event | - |
| Parachain tokens | Furniture capital | Upon receipt |
| Liquid Staking (LDOT) | Profit/loss | When withdrawing |
Updated: April 2026 | Fiscal year: 2025