Cryptocurrency mining: taxation for miners in Spain
Cryptocurrency mining—whether with GPUs, ASICs, or through participation in pools—has a different tax treatment than passive investment. The key lies in whether there is regularity and organization.
Regular mining: economic activity
If you mine regularly with the intention of obtaining a continuous economic benefit, Hacienda considers it an economic activity (Article 27 LIRPF).
This implies:
- Registration in the IAE (Economic Activities Tax), under the corresponding heading.
- Registration as self-employed (autónomo) with Social Security if income exceeds the SMI.
- Mining rewards are taxed as income from economic activities in the general tax base.
- You can deduct the expenses necessary for the activity: electricity, hardware depreciation, internet, premises, etc.
Deductible expenses in mining
| Expense | Deductibility |
|---|---|
| Electricity (proportional part of mining) | 100% if exclusive |
| Hardware (ASICs, GPUs) | Depreciation according to tables |
| Cooling and ventilation | 100% |
| Rental of premises or CPD | 100% if exclusive |
| Internet | Proportional |
| Monitoring software | 100% |
Occasional mining: capital gain
If you mine sporadically, without organization of means or clear regularity:
- Rewards are classified as capital gains not derived from a transfer in the general base (marginal rate).
- Expense deductions are not allowed (as it is not an economic activity).
Pool mining
Participating in a mining pool does not change the tax nature. What varies is that instead of receiving the full block, you receive a fraction proportional to your hashrate. The treatment is the same.
Valuation of mined cryptos
Mining rewards are valued at the market price at the time of receipt. This value is also the acquisition cost for future sales.
Example:
- You mine 0.001 BTC/day. If BTC is trading at €60,000 that day, the income is €60.
- You must accumulate these values daily for the year.
VAT and mining
Important: individual mining is not subject to VAT (IVA) according to the 2019 TEAC resolution, because the miner does not provide an identifiable service to a specific recipient. However, if you sell mining hardware, that sale may generate VAT (IVA).
Double taxable event of mining
Like staking, mining generates two tax moments:
- Upon mining: income from economic activity (or capital gain) based on the market value.
- Upon selling: capital gain/loss based on the difference between the sale price and the previously recorded cost.
Conclusion
Mining is the crypto modality with the most complex taxation, especially when regularity exists. Correctly defining whether it is an economic activity or not, and maintaining orderly accounting of costs and rewards, is fundamental to optimizing the tax burden and avoiding problems with the AEAT.