Cryptocurrency donations in Spain: taxation
Donating cryptocurrencies to a relative, friend, or charitable entity has tax implications for both the donor and the recipient. And they are more complex than they seem.
For the donor: IRPF
When you donate cryptocurrencies, the AEAT considers that there is a transfer of the asset. The donor must declare the capital gain or loss calculated as:
Gain = Market value on the date of the donation − FIFO acquisition cost
Even if you haven't received money in return, the donation is taxed as if you had sold at the market price on that day.
Example:
- You have 0.1 BTC acquired at €5,000 (total).
- You donate it when BTC is worth €90,000 (0.1 BTC = €9,000).
- You must declare a capital gain of 9,000 − 5,000 = €4,000 in your IRPF.
For the recipient: Inheritance and Gift Tax
The person who receives the donation pays the Inheritance and Gift Tax (ISD), managed by the CC.AA.
The rate varies enormously depending on:
- The autonomous community where the donee resides.
- The amount donated.
- The relationship between the donor and the donee.
In Madrid or Andalusia, donations between ascendants/descendants are highly subsidized. In other CC.AA., the rate can reach 34% or more.
Acquisition cost for the donee
The recipient acquires the cryptos with an acquisition cost equal to the value declared in the ISD (the market value on the date of the donation).
If they subsequently sell the cryptos, their capital gain will be calculated based on that cost, not on the donor's original cost.
Donations to non-profit entities
If you donate crypto to an NGO or charitable entity recognized under LO 49/2002:
- The donor can deduct 80% of the first €150 and 35% of the remainder from their IRPF liability.
- The NGO does not pay ISD (exempt).
- The donor is still taxed on the capital gain in IRPF, but can offset it with the deduction.
Conclusion
Donating crypto is not tax-neutral. The donor pays for the latent capital gain as if they were selling, and the recipient pays the ISD. It only makes economic sense in donations to NGOs with tax benefits. For donations between family members, calculate carefully before acting.