Investing in Crypto through a SICAV or IIC: The Privileged Tax Regime
Collective Investment Institutions (IICs)—investment funds, SICAVs, SILs—enjoy a very advantageous tax regime in Spain: they are taxed at 1% under Corporate Tax, and participants/shareholders can defer taxation until the moment of redemption or transfer. Can they be used to invest in Bitcoin and other cryptocurrencies?
What is a SICAV and How Does It Work?
A SICAV (Variable Capital Investment Company) is a public limited company that, instead of producing goods or services, invests its shareholders' assets in financial instruments. Its characteristics include:
- Variable capital: shareholders can enter and exit continuously.
- Minimum number of shareholders: currently 100 genuine shareholders (previously 2 before the 2021 reform, now a minimum of 100 genuine shareholders).
- Supervision by the CNMV.
- Corporate Tax rate: 1% (compared to the general 25%).
The Crypto Market in IIC Vehicles
With the implementation of MiCA (Markets in Crypto-Assets) in the EU starting in 2024-2025:
- ETPs (Exchange Traded Products) for Bitcoin and Ethereum are already available in regulated European markets (e.g., Wisdom Tree and 21Shares ETPs on Euronext, Xetra).
- Regulated investment funds can include these ETPs in their portfolios.
- SICAVs and SILs (Free Investment Companies) can invest directly in crypto-assets under certain ESMA conditions.
Tax Advantages of the IIC Regime
1. Tax Deferral (Transfers)
The major benefit of funds and SICAVs is the tax-free transfer:
- For SICAV shares: since 2022, transfers between IICs are NO longer exempt for SICAVs (they remain exempt for conventional investment funds).
- For crypto investment funds: if domiciled in Spain and regulated as an IIC, transfers between compartments are tax-neutral.
2. Corporate Tax Rate of 1%
Gains within the fund are taxed at only 1% under Corporate Tax. This allows for an almost tax-free accumulation of returns during the investor's time in the fund.
3. Taxation Only at Redemption
When the investor redeems, the gain (difference between the purchase and sale net asset value) is fully taxed as savings capital gains at rates between 19-28%.
Comparative Example:
- Direct BTC purchase: €10,000. BTC rises to €50,000. Sale → Capital gain of €40,000. Tax: ~28% = €11,200.
- Via investment fund: €10,000. Fund invests in BTC ETP. Value rises to €50,000. Without transfer → only pays 1% Corporate Tax annually on the gain if the fund realizes the capital gain each year. Upon redemption → same treatment as direct sale.
The real advantage lies not in the rate but in the ability to transfer between funds without taxation (for conventional funds domiciled in Spain).
Regulated Investment Funds with Crypto Exposure
In Spain, by 2025, CNMV-regulated investment funds can have crypto exposure indirectly through:
- Bitcoin/Ethereum ETPs listed on regulated European markets.
- Sector companies (MicroStrategy, Coinbase, Marathon Digital).
- Bitcoin futures on the CME.
Funds with direct exposure to crypto (holding BTC, ETH) are still under regulatory development under MiCA.
Alternative Vehicles: The SIL (Free Investment Company)
SILs are free investment vehicles (hedge funds) for professional investors (minimum €100,000 or qualification) that can invest directly in crypto-assets under certain conditions:
- They can have direct exposure to BTC, ETH, etc.
- Minimum of 25 investors.
- Automatic tax deferral does not apply to the investor (they are not harmonized IICs).
- The Corporate Tax rate is the general rate (25%), but they can be structured for optimization.
Limitations and Risks
- No Spanish Bitcoin ETF comparable to the American IBIT with full liquidity.
- European ETPs have counterparty structures (some ETNs are issuer debt, not fund shares).
- SICAVs are in decline in Spain after the 2022 reform requiring 100 genuine shareholders and limiting "family SICAVs."
- Limited access: funds with crypto exposure through IICs are mostly available to institutional or private banking investors.
Summary
| Vehicle | Crypto Type | Corporate Tax | Deferral | Access |
|---|---|---|---|---|
| Investment Fund (IIC) | Indirect (ETP) | 1% | Yes (transfers) | Retail |
| SICAV | Indirect or direct (post-MiCA) | 1% | Only on redemption | >100 shareholders |
| SIL | Direct | 25% | Not automatic | Professional investors |
| Crypto ETF | Direct | Fund's Corporate Tax | No (in Spain) | Limited |
If you have significant wealth and want to optimize the taxation of your long-term crypto investments, consult your wealth management bank about the available IIC options.
Updated: April 2026 | Fiscal Year: 2025