How to Report DeFi Yield in Spain: Your Complete 2024 Tax Guide

Understanding DeFi Yield Taxation in Spain

Decentralized Finance (DeFi) has revolutionized earning opportunities through crypto staking, liquidity mining, and lending. But in Spain, these gains aren’t tax-free. The Agencia Tributaria (Tax Agency) treats DeFi yields as taxable income, requiring precise reporting. Failure to comply risks penalties up to 150% of owed taxes plus interest. This guide clarifies Spain’s complex crypto tax landscape, helping you accurately report DeFi earnings while avoiding costly mistakes.

Types of DeFi Yield Subject to Spanish Taxes

Spanish tax law categorizes most DeFi activities as capital gains or miscellaneous income:

• Staking Rewards: Taxed as miscellaneous income upon receipt at fair market value
• Liquidity Pool Earnings: Treated as capital gains when tokens are sold or swapped
• Lending Interest: Considered savings income taxable at progressive rates
• Airdrops & Forks: Taxable as ordinary income if they provide economic benefit

Note: Yield from non-EU platforms still requires declaration under Spain’s worldwide income taxation rules.

Step-by-Step Guide to Reporting DeFi Yield

1. Track All Transactions
   Use tools like Koinly or CoinTracking to log every yield event, including dates, amounts, and EUR values at receipt.
2. Convert to Euros
   Calculate yield value using Banco de España exchange rates on the day of receipt (even if tokens aren’t sold).
3. Categorize Income Type
   • Ongoing rewards: Box 0026 (Other income) on Modelo 100
   • Capital gains from disposal: Box 0346 (Capital gains/losses)
4. Calculate Tax Owed
   • Miscellaneous income: Added to general income, taxed at 19%-47%
   • Capital gains: Subject to 19%-26% savings tax rates
5. File Modelo 100 Annually
   Declare all earnings between January 1-April 30 for the previous tax year. Digital certificates allow online submission.

Special Considerations for Spanish Taxpayers

Wealth Tax Implications: Crypto holdings exceeding €700,000 (including unsold yield) may trigger Impuesto sobre el Patrimonio declarations in certain autonomous communities.

Form 720 Reporting: DeFi assets over €50,000 held on foreign platforms require separate Form 720 disclosure by March 31.

Loss Offsetting: Capital losses from DeFi can offset gains but not miscellaneous income. Unused losses carry forward 4 years.

FAQs: DeFi Taxes in Spain

Is unstaking considered a taxable event?

No. Tax applies when rewards are received, not when unstaking tokens. The taxable amount is the EUR value at receipt.

What if I can’t get transaction history from a DeFi platform?

You remain legally responsible. Use blockchain explorers like Etherscan to reconstruct records. Spanish tax advisors specializing in crypto can assist.

Are there tax exemptions for small DeFi earnings?

Spain offers no blanket exemptions. However, capital gains under €500/year may be exempt in some autonomous regions like Madrid.

How are stablecoin yields taxed?

Identically to volatile crypto assets. The 1:1 EUR peg doesn’t exempt you from declaring interest or rewards.

Can I deduct DeFi transaction fees?

Yes. Gas fees and platform costs directly related to generating yield are deductible from taxable income.

Professional Guidance Recommended

With Spain’s crypto tax rules evolving rapidly, consulting a gestor or tax advisor experienced in DeFi is advisable. They help navigate autonomous community variations, optimize tax positions, and ensure audit-proof recordkeeping. Penalties for underreporting start at €1,000 plus 50% of unpaid tax – making professional assistance a wise investment.