Wealth Tax and cryptocurrencies: do you have to declare?
The Wealth Tax (IP) is an annual tax on the net wealth of taxpayers. Cryptocurrencies are part of your assets and are subject to this tax.
In which regions is it paid?
The IP is devolved to the Autonomous Communities (CC.AA.). Some have a 100% tax relief (which is equivalent to not paying), such as Madrid. Others keep it in force, such as Catalonia, Valencia, the Balearic Islands, or Andalusia.
Tax-exempt threshold: €700,000 in general; €300,000 for the primary residence (additional). In some CC.AA., the tax-exempt threshold is different.
Valuation of cryptocurrencies in the IP
Cryptocurrencies are valued at their market value as of December 31st of the tax year.
To obtain the correct value:
- Use the closing price on December 31st from a reference exchange (Coinbase, Binance…).
- Multiply by the number of units you hold across all your wallets and exchanges.
Which cryptos are included?
All those you own as of December 31st, regardless of where they are:
- In centralized exchanges (CEX).
- In self-custody wallets (hardware wallet, software wallet).
- In DeFi protocols (staking, liquidity, loans…).
The Solidarity Tax on Large Fortunes
Since 2023, there has been a Solidarity Tax on Large Fortunes (ISGF), which complements the IP for fortunes exceeding €3,000,000. Cryptocurrencies are also included in its tax base.
Wealth with cryptos and the IP
If you have a crypto portfolio with a value higher than the total tax-exempt threshold of your CC.AA., and you are not in a community that provides 100% tax relief:
- Calculate the market value of your cryptos as of December 31st.
- Add the rest of your assets (real estate, bank accounts, shares…).
- Subtract debts (mortgages, etc.).
- If the result exceeds the tax-exempt threshold of your CC.AA., you must file Form 714 (Wealth Tax).
Filing deadline
Form 714 is filed during the same period as the IRPF (generally April-June), although the deadline may vary.
Conclusion
If your net wealth exceeds the IP thresholds in your autonomous community, cryptocurrencies must be included and valued at market price as of December 31st. It is not optional, although it does depend on the community in which you reside.