Ripple (XRP) and Stellar (XLM): taxation in Spain
Ripple (XRP) and Stellar (XLM) are two blockchains focused on international payments and transfers. Its popularity and the long litigation SEC vs. Ripple make many Spanish investors have specific tax doubts about these assets.
XRP: the Ripple Labs token
Ripple Labs developed the XRP Ledger protocol and uses XRP as a bridging asset to facilitate cross-border payments between financial institutions. XRP is not a conventionally staked token, but it does have liquidity provision mechanisms.
XRP taxation in Spain:
The AEAT treats XRP exactly the same as Bitcoin or any other cryptocurrency:
- Purchase of XRP → annotation of the acquisition cost.
- Sale of XRP → capital gain/loss based on savings.
- Mandatory FIFO.
The case SEC vs. Ripple: does it affect Spanish taxation?
In December 2020, the American SEC sued Ripple Labs alleging that XRP was an unregistered security. In July 2023, Judge Analisa Torres ruled that XRP is not a transferable security when sold on secondary exchanges to retail investors (it is in direct institutional sales).
What implications does this have for the Spanish investor?
- None direct in the fiscal order: The AEAT does not follow the SEC categories. XRP is taxed as a cryptocurrency regardless of the outcome of the litigation.
- Exchange Risk: Some exchanges listed XRP during the litigation (Coinbase USA, Kraken USA). If your favorite exchange listed XRP, you had to sell or transfer. That sale has tax implications.
- If you sold XRP during the listing panic: You are taxed on the gain/loss in the year of sale.
Practical example: XRP delisting and relisting
- You bought 10,000 XRP at €0.50 in 2019 (cost: €5,000).
- In January 2021, your exchange delisted XRP and forced you to sell at €0.25 → €2,500.
- Equity loss: €2,500 − €5,000 = −€2,500 (deductible in 2021 income).
- You bought back 10,000 XRP on another exchange at €0.40 in 2021 → new cost: €4,000.
- You sold in 2024 at €0.60 → profit: €6,000 − €4,000 = €2,000.
Ammendments and Ledger governance of XRP Ledger
XRP Ledger has a governance system where validators vote on amendments. There are no governance tokens being distributed; validators operate without direct reward. It does not generate additional taxable events for normal holders.
Stellar (XLM): XRP's brother
Stellar Lumens (XLM) is the decentralized version, created by Ripple co-founder Jed McCaleb. Focused on payments for individual users and developing countries.
Fiscally relevant features of Stellar:
- Stellar has historically had "inflation rewards" (already removed). If you received them in the past, they were capital gains.
- Stellar Development Foundation (SDF) has done large XLM airdrops. Each airdrop received → capital gain at the market price at that time.
XLM on exchanges: staking and earning
Some exchanges (Bitpanda, Binance) offer XLM staking with 2-5% APY:
- Staked deposit → it is not a transmission (custody on the exchange).
- Periodic rewards in XLM → return on capital.
- When you withdraw the stake → it is not a taxable event (they were already yours).
Ripple and CBDC: On-Demand Liquidity
Ripple offers institutional services using XRP as a bridge asset. If you are a company or financial institution using ODL:
- XRP used as a "bridge" (instant purchase and sale) generates taxable events in each operation.
- Given the volume and frequency, this requires professional tax management.
Model 721 for XRP and XLM
If you have XRP or XLM on exchanges outside of Spain with a value > €50,000:
- Form 721: Mandatory declaration before March 31 of the following year.
- XRP and Ripple are different entities; The XRP token is a crypto asset, not a Ripple Labs stock.
Updated: April 2026 | Fiscal year: 2025