“Spain needs to separate Bitcoin from virtual currencies,” Treasury inspector says

Two Treasury inspectors are proposing a special regime to tax Bitcoin (BTC) profits in Spain. This initiative by Juan Faus and José María Gentil pioneers the distinction of digital currencies from altcoins as a first step towards recognizing their role as stores of value.

This approach creates enthusiasm in the field. Álvaro D. Maria, a lawyer and Bitcoin expert, said:

suggestion Questioning the current standards of the Directorate General of Taxation (DGT). This standard considers similar virtual currencies to be homogeneous assets and requires the assumption that “what is sent is what was acquired from the beginning”, that is, the FIFO method is applied (first in first out or first in, first out).

Inspectors Faus and Gentile cited the 2022 consultation in their proposals, saying: “This is wrong and we must change.” In fact, they rely on a judgment of the Basque High Court (STSJPV 41/2025) that questions the consultation of the DGT.

It refuses to equate cryptocurrencies with traditional titles due to their uniqueness and lack of regulatory adaptation, as cited in the Cryptocurrency Market Regulation (MiCA) to emphasize its novelty in the community order.

In light of this, the two financial inspectors’ proposals are: Propose an exclusive voluntary system for Bitcoin. Basically, we are asking that users be allowed to split their holdings into different wallets (cold wallets, hot wallets, exchange accounts, etc.) in principle.

In this way, you can choose how returns are calculated within each portfolio. That is, continue on a FIFO basis or use a weighted average price. This is very similar to how currencies are normally handled.

Inspectors say aggressive taxation will drive out savings

In that sense, Faus and Gentil point out that when a user moves Bitcoin from one wallet to another, the value is updated at that moment and taxes are paid accordingly. In this way, the door to tricks to postpone taxes indefinitely is closed, they added.

The authors argue that those who do not follow the voluntary model will continue to use classic FIFO. “Outside special regimes, the FIFO method needs to be maintained to encourage its adoption,” they point out.

They added that there will be no change for the cryptocurrencies Ethereum, Solana, and other altcoins as they will continue to be taxed as like-kind securities with FIFO requirements, just like stocks.

The inspectors concluded that “a revolutionary phenomenon like Bitcoin requires an approach that enables a global vision” and that without fiscal neutrality, wealth will ultimately be transferred or hidden away under self-control.

The authors warn that Aggressive taxation deprives Spain of savings and economic activityEspecially when 70% of family assets are in housing, compared to the largest weight in financial assets in Europe, and there are neighboring jurisdictions with more favorable rules.

Taxation on housing is much more friendly (e.g. you don’t have to pay capital gains if it’s your main residence, it’s exempt if it’s an inheritance). And since the gold and stocks are already in other countries, Bitcoin is prevented from becoming a real savings alternative.

Changes required to Spain’s Bitcoin tax

The initiative has sparked positive feedback within the ecosystem, as it means a reduction in the tax burden in Spain, but some believe there may be a better fix.

Economist and tax advisor José Antonio Bravo Mateu commented: “This proposal is not bad at all, but for simplicity we would prefer to use a common weighted average cost, which cushions the effect of price increases over time, as HMRS does in the UK.”

However, if the inspector’s proposal is approved, It will change the opinion of the Directorate General of Taxation. (DGT) has already made it clear that digital assets are considered “intangible assets” rather than money, which CriptoNoticias has already reported.

The inspector general’s proposals advocate treating it as “real money” with a neutral tax regime for Personal Income Tax (IRPF) purposes and encourage its implementation without tax evasion.