Crypto losses: how to offset them in IRPF

Crypto markets are volatile and losses are frequent. The good news is that these losses can reduce your tax bill, provided you declare them correctly and understand the IRPF offsetting rules.

Types of offsettable losses

Capital losses from transfers (savings tax base)

These are generated when selling or exchanging cryptocurrencies below their acquisition cost. They are offset within the savings tax base:

Offsetting rule in the savings tax base (Article 49 LIRPF):

1. First, they are offset against capital gains in the savings base (other crypto sales, stocks, funds…).
2. If there is an excess of losses, they can offset up to 25% of positive income from movable capital (interest, dividends).
3. Any remaining un-offset balance is carried forward for the following 4 years.

Capital losses not derived from transfers (general base)

For example, losses due to documented scams or thefts. These are offset in the general base, under different rules.

Practical example of offsetting

2024 Tax Year:

• Gain from BTC sale: +€8,000
• Loss from ETH sale: −€12,000
• Interest in account: +€500

Offsetting:

1. ETH loss (−12,000) vs BTC gain (+8,000) → Balance: −€4,000 in pending losses.
2. 25% of the interest (500 × 25% = €125) offsets €125 → −€3,875 remains pending.
3. This €3,875 is carried forward to 2025, 2026, 2027, and 2028.

The generation period rule

Losses in the savings base can only be generated through transfers (disposals). If cryptos are "lost" without a transfer (hack, loss of private key, exchange bankruptcy), the treatment may be different:

• Documented exchange bankruptcy: deductible capital loss in the year of the event (Article 33.3.c LIRPF).
• Loss of private key: the AEAT has not clarified this scenario. The most conservative stance is not to deduct it until there is an official ruling.

Doing nothing also has a cost

A common mistake is not declaring losses because one thinks "it makes no sense to declare if I lost money." This is an error: declared losses reduce future gains for 4 years. If you do not declare them in the year they occur, you lose the right to carry them forward.

The 25% limit on income from movable capital

The 25% limit on income from movable capital was introduced in 2015 to prevent the total offsetting of earned income (salary) with investment losses. It is important to keep this in mind if you have:

• Bank interest.
• Stock dividends.
• Life insurance payouts.
• Bond yields.

Offsetting with stock and fund losses

Crypto losses can be offset against gains from stocks, investment funds, or any other asset in the savings tax base. And vice versa: stock losses offset crypto gains. They belong to the same tax "basket."

Conclusion

Crypto losses are a valuable tax asset. Declaring them correctly and in the year they occur gives you up to 4 years to offset them against future gains. A crypto tax platform automatically calculates accumulated losses and carries them forward from one tax year to the next.