Spain Voters Eye Crypto Tax Shock: Gains Could Hit 47%

Spain’s government has proposed sweeping changes to crypto taxation that would reclassify crypto gains under a higher tax bracket.

Under the new framework, profits from cryptoassets not deemed financial instruments would face rates reaching 47%.

🚨SPAIN WANTS A BIGGER CUT!!!

Spain’s government just proposed new laws that would slam crypto gains with higher taxes.

Pushing them into brackets as high as 47% and treating all crypto as fully seizable assets.

Absurd!! pic.twitter.com/Pzp62gVb4s

— Kyle Chassé / DD🐸 (@Kylechasse) November 26, 2025

The proposal shifts crypto gains from the current savings tax base, capped at 30%, to the general Personal Income Tax base.

Meanwhile, corporate entities would see crypto gains taxed at a flat 30% rate under Corporation Tax rules. The changes aim to align crypto taxation with traditional income categories.

The draft also mandates the National Securities Market Commission to develop a visual risk assessment system for cryptocurrencies. Platforms operating in Spain would be required to display this traffic light-style indicator to investors.

The risk evaluation would consider factors including official registration status, regulatory supervision, asset backing, and market liquidity. This measure seeks to improve investor awareness before engaging with crypto products.

Spain Crypto Industry Warns of Capital Flight

Economist and tax advisor José Antonio Bravo Mateu criticized the proposed measures as ineffective against Bitcoin. He noted that cryptocurrency held in self-custody wallets remains beyond the reach of financial monitoring systems.

🚨 El Grupo Parlamentario Sumar ha presentado tres enmiendas en el proyecto que transpone la Directiva de la UE sobre criptoactivos que van claramente contra Bitcoin, Ethereum y otras criptomonedas:

1️⃣ Quieren que las ganancias por criptoactivos no considerados instrumentos…

— José Antonio Bravo Mateu (@jabravo) November 24, 2025

Bravo Mateu warned the policy could trigger an exodus of Spanish crypto holders. He stated that when Bitcoin appreciates significantly, residents may choose to relocate rather than face punitive taxation.

The proposal also expands seizure provisions to encompass all crypto assets as seizable property. Previously, only cryptocurrencies regulated under the European Union’s Market in Crypto assets Regulation faced such treatment.

Lawyer Chris Carrascosa described this expansion as unenforceable and confusing. He explained that cryptocurrencies outside MiCA regulation, such as Tether, cannot be held by authorized centralized providers.

Carrascosa argued this makes seizure technically impossible for non-MiCA assets. He added that the modification complicates operations for Cryptoassets Service Providers, who must execute seizure orders.

The legal expert warned that approval of these amendments would create chaos in Spain’s crypto tax regime. He criticized the country’s tax system as already overly complex and suffocating for market participants.

Regulatory Crackdown Follows Platform Penalties

The proposal comes weeks after Spain fined Elon Musk‘s X platform €5 million in November 13, 2025. The National Securities Market Commission sanctioned Twitter International Unlimited Company for securities law violations.

Spain's stock market supervisor has fined Elon Musk-owned social media platform X 5 million euros ($5.8 million) for failing to make sure that a cryptoasset company that used X for advertisements had authorisation to provide investment services. https://t.co/CsYSeTleit

— Reuters Legal (@ReutersLegal) November 13, 2025

Regulators determined the platform failed to adequately verify whether advertisers promoting crypto investment products were properly regulated. The company also neglected to check domestic and international warning lists.

Under Spain’s updated Securities Markets and Investment Services Law, platforms bear responsibility for vetting investment product promotions. The breach was classified as very serious and continuous in nature.

The €5 million penalty represented the maximum fine allowed under law for such infractions. X retains the right to appeal the decision before Spain’s High Court.

The enforcement action targeted deepfake cryptocurrency scam advertisements that appeared on the platform. This incident highlighted growing concerns about fraudulent crypto promotions targeting Spanish investors.

Following this enforcement precedent, the new tax proposal signals Spain’s broader strategy to tighten crypto market oversight. The combined measures represent some of Europe’s strictest approaches to digital asset regulation.

Industry observers note that Spain’s aggressive stance contrasts with more crypto-friendly jurisdictions in Europe. The proposals may influence investor decisions about residency and operational headquarters for crypto businesses.