NFTs and Their Tax Treatment in Spain

NFTs (non-fungible tokens) have evolved from being a technological curiosity to representing significant transaction volumes. The AEAT has not yet published specific regulations, but the general rules of the IRPF provide a clear framework.

What Is an NFT for Tax Purposes?

An NFT is a digital asset with unique characteristics. Its tax treatment depends on its economic nature:

• If it represents a work of art or collectible asset → it is treated as a movable asset.
• If it represents a financial right (profit sharing, etc.) → it could be treated as a security.
• If it is a utility asset in a video game or metaverse → a movable asset for use.

In most practical cases, NFTs are treated as movable assets subject to the general regime of capital gains and losses.

Buying NFTs

The purchase itself does not generate a taxable event. However, it is important to record the acquisition cost correctly:

• Price paid in ETH (or another crypto) converted to EUR at the exchange rate on the day.
• Plus the gas fees included in the purchase.

Note: If you paid for the NFT with ETH, the transaction simultaneously generates:

1. A disposal of ETH (gain/loss on the ETH used).
2. An acquisition of the NFT at its market value in EUR.

Selling NFTs

The sale generates a capital gain or loss:

Gain = Sale value in EUR − Acquisition cost in EUR

If you are paid in ETH, the sale value is the EUR equivalent at the exchange rate on the transaction date.

Example:

• You bought an NFT for 0.5 ETH when ETH was worth €2,000 → NFT cost = €1,000
• You sold the NFT for 2 ETH when ETH was worth €3,500 → sale value = €7,000
• Capital gain: €6,000
• Additionally, the 0.5 ETH used in the purchase generated its own gain/loss based on its FIFO cost.

Creating and Selling NFTs (Artists and Creators)

If you are the creator of the NFT and sell it, the nature of the income changes:

• The sale of NFTs created by you is taxed as income from economic activities (if habitual) or as a capital gain (if occasional).
• You must register as self-employed if the activity is habitual (several NFTs per year with profit intent).

NFT Royalties

Some NFTs include smart contracts that pay the original creator a percentage of each resale (royalties). These royalties are taxed as investment income or income from economic activities, depending on the habituality of the recipient.

Where to Declare NFTs?

• Gains/losses from sales: Savings base, same boxes as other cryptocurrencies (1626/1627).
• Income as a creator (economic activity): Boxes for income from economic activities.
• Royalties: Boxes for investment income.

Modelo 172/173 and NFTs

NFTs held in exchanges or custodial platforms must be declared in Modelo 172 (balances as of December 31) if thresholds are exceeded. Purchase and sale transactions are included in Modelo 173.

Conclusion

NFTs do not have differentiated tax treatment: general IRPF rules apply, which in practice means that every crypto purchase and every sale generates taxable events that must be calculated accurately.