Less than €1,000 in crypto: Do you need to declare it in your income tax return?
This is the question we get asked the most: "I only earned €300 with crypto, do I need to declare it?" The answer is not as simple as a yes or no. It depends on the type of gain, your other income, and whether you are generally required to file a tax return.
The €1,000 threshold everyone mentions (and misinterprets)
There is a threshold of €1,000 in capital gains, below which, if you do not have other income subject to withholding above certain limits, you might not be required to file a tax return.
But beware: this does not mean the gain is exempt. It means you might not have a formal obligation to file the form. If you don’t file it and the tax authorities request it, you will still owe the tax plus interest and penalties.
When are you NOT required to declare?
According to Article 96 of the Income Tax Law, you are not required to declare if the following conditions are met simultaneously:
- Employment income ≤ €22,000 gross annually (from a single payer).
- Investment income and capital gains subject to withholding ≤ €1,600.
- Real estate income, treasury bills, and subsidies ≤ €1,000.
- Capital losses < €500.
Cryptocurrencies are generally NOT subject to withholding (exchanges do not withhold income tax). This means that crypto gains fall under the general €1,000 threshold for income without withholding.
The specific case: only small crypto gains
Scenario: You are an employee with a single payer, earning €30,000 gross, and you made €400 with crypto.
- Employment income: €30,000 → required to declare because it exceeds €22,000.
- Even if it were < €22,000, crypto gains without withholding fall under the €1,000 threshold. If they are < €1,000 and your other income is also below the limits, you might not be required to declare.
But there’s a catch: Forms 172 and 173. Even if you don’t file an income tax return, if you have balances in exchanges or have conducted crypto transactions, you might be required to file these informational forms (no tax payment, but penalties apply if not filed).
What if I only had losses?
Capital losses below €500 do not create an obligation to declare. However, if you don’t declare them, you won’t be able to offset them against gains in future years. Filing a return with losses "saves" that offsettable balance for up to 4 years.
Real risks of not declaring small gains
- Data matching: The tax authorities receive information from exchanges with Spanish users. If they have your data and you don’t declare, they can send you a parallel assessment.
- Minimum penalty: If you are caught, the minimum penalty is 50% of the undeclared tax plus late payment interest at 4.06% per year.
- Statute of limitations: The tax authorities have 4 years to review your return (or 4 years from the filing deadline if you didn’t file).
What do tax experts do?
The consensus among tax advisors specializing in crypto is clear: always declare, even if the amount is small. The cost of declaring is minimal if you use a calculation tool, and the risk of not doing so can be disproportionately high.
Summary
| Situation | Required to declare? |
|---|---|
| Only crypto gains < €1,000, employment income < €22,000 | Probably not required, but recommended |
| Only crypto gains < €1,000, employment income > €22,000 | Yes, you must include them in your return |
| Only crypto losses | Not required, but advisable for offsetting |
| Balance in exchanges > Form 172 threshold | Possible informational obligation even if no income tax return is filed |
Always consult with a tax advisor for your specific situation.
Updated: April 2026 | Tax year: 2025