How to Pay Taxes on DeFi Yield in Spain: 2024 Complete Guide

Understanding DeFi Tax Obligations in Spain

Decentralized Finance (DeFi) has revolutionized how Spaniards earn passive income through yield farming, staking, and liquidity mining. However, Spain’s tax authority (Agencia Tributaria) treats DeFi earnings as taxable income. Whether you’re providing liquidity on Uniswap, staking MATIC, or earning interest from Aave, you must declare these gains. Failure to report can lead to penalties of 50-150% of unpaid taxes plus interest. This guide explains exactly how to comply with Spanish tax laws for your DeFi activities.

How Spain Taxes DeFi Yield: Key Principles

Spanish tax rules categorize DeFi earnings based on activity type:

1. Capital Gains Tax: Applies when selling/staking tokens. Calculated as (Sale Price – Acquisition Cost). Tax rates range from 19% to 28% based on profit amount.
2. Savings Income Tax: Covers interest-like rewards (e.g., liquidity mining yields). Taxed at 19%-28% as rendimientos del capital mobiliario.
3. Exchange Tax Events: Token swaps (e.g., ETH to USDC) trigger capital gains calculations using market values at transaction time.

Note: All calculations require Euro conversions using exchange rates on transaction dates.

Step-by-Step Guide to Reporting DeFi Taxes

1. Track All Transactions

Use tools like Koinly or TokenTax to automatically log:

• Token acquisitions
• Yield received (daily/weekly)
• Gas fees
• Swap transactions

2. Calculate Taxable Amounts

For yield farming rewards:

1. Record fair market value in EUR when rewards are claimed
2. Deduct verifiable costs (e.g., blockchain fees)

3. File Form 100 (Income Tax Return)

Report earnings in these sections:

• Box 0026: Capital gains from disposals
• Box 022: Savings income (DeFi interest)

Deadline: April-June annually for the previous tax year.

Common DeFi Tax Mistakes to Avoid

• Ignoring Small Rewards: Even €0.50 in UNI tokens must be reported
• Forgetting Cost Basis: Track original token purchase prices
• Missing Deadlines: Late filings incur minimum €100 fines
• Omitting Gas Fees: These reduce taxable gains if documented

Frequently Asked Questions (FAQ)

Is staking yield taxable in Spain?

Yes. Staking rewards are taxed as savings income when received, based on market value at claiming time.

How are DeFi loans taxed?

Interest paid on DeFi loans isn’t deductible. Borrowed assets don’t trigger taxes until sold or swapped.

Do I pay taxes on impermanent loss?

No. Impermanent loss isn’t taxed until you withdraw liquidity and realize the loss/gain.

What if I use international exchanges?

Spanish residents must declare worldwide income. Use Form 720 for foreign holdings exceeding €50,000.

Can I deduct DeFi losses?

Yes. Capital losses offset gains in the same tax year and can be carried forward 4 years.

Staying Compliant in 2024

With Spain implementing DAC8 crypto reporting rules in 2026, transparency is increasing. Consult a gestor specializing in crypto taxes if you have complex DeFi activities. Keep detailed records including wallet addresses, transaction IDs, and exchange statements. Proactive compliance avoids stressful Hacienda audits and ensures your DeFi journey remains profitable and legal.