The increase in the value of bitcoin can generate capital gains and have a tax impact

The increase in the value of bitcoin, which has reached historic highs, can generate capital gains and therefore have a tax impact when declaring it to the tax authorities.

Joaquim Matinero, an expert counsel in blockchain and digital assets, comments in Expansión for subscribers only): “The increase in bitcoin this year, with a significant rise in its value, can generate considerable capital gains,” adding that “failing to declare correctly or attempting to hide movements or gains can lead to a high risk of penalties” and “it is essential to review the value of assets as of December 31, 2024.”

Our expert recommends compiling the annual closing data: “as well as saving all statements and screenshots that reflect the positions,” in addition to “calculating the net gains, that is, the difference between the sale price and the purchase price, because that will be the taxable base on which tax will be levied.”

For her part, Paula Gámez, a partner in the tax department, comments that “the gain or loss must be calculated independently for each type of cryptocurrency and applying the FIFO (First In First Out) criterion, whereby the oldest cryptocurrencies are considered sold.” She adds: “These gains are taxed on the savings tax base, and everything points to next year starting with an increase in the tax burden on this type of income.”