Did you know that you can legally use cryptocurrencies in Spain, but under very specific rules? Many people believe that using Bitcoin, Ethereum, or any other crypto asset exists in a “legal vacuum.” The truth is that since 2021, Spain has been updating its laws, and by 2025 there is a clear Spain crypto regulation that applies to both residents and non-residents, including foreigners investing or making transactions here.
In this guide, you’ll learn the reality behind is crypto legal in Spain, how the blockchain ecosystem is regulated, and what you must know about crypto taxes in Spain if you plan to trade or hold assets in the country.
Is Spain Crypto-Friendly?
Yes, Spain is considered crypto-friendly, but with important conditions. You can buy, sell, and use cryptocurrencies as a means of payment in businesses that choose to accept them. However, they are not legal tender like the euro, so no company is obliged to take them.
While there is no ban on owning crypto in Spain, there are strict rules on declaring assets and preventing money laundering. Spain crypto tax obligations are part of these rules, and ignoring them can result in penalties.
Spain Crypto Regulation in 2025
In 2025, Spain follows the European Union’s MiCA (Markets in Crypto-Assets) framework. This includes:
Exchange registration – Platforms operating with crypto must be registered with the Bank of Spain.
User identification – Know Your Customer (KYC) verification is required to open accounts on exchanges or custodial wallets.
Crypto taxes Spain – Residents must declare crypto holdings abroad via Form 721 and report capital gains on their annual income tax return or corporate tax if applicable.
Crypto Taxes in Spain for Foreigners
If you are a foreigner dealing with crypto in Spain, the law requires you to:
Report profits or losses from crypto sales in Spain, even if you live outside the EU, if those profits are generated in Spain.
Declare foreign holdings if you are a Spanish tax resident.
Follow anti-money laundering (AML) rules when using Spanish-based platforms.
So, is Spain crypto-friendly? Yes — you can use and trade cryptocurrencies freely, as long as you respect the country’s legal framework and crypto taxes in Spain requirements. Spain doesn’t ban blockchain; instead, it regulates it to protect both users and the financial system.
In upcoming articles, we’ll explain what happens if you don’t pay your Spain crypto tax, so you can invest confidently and avoid legal trouble.