Spain Charges Investor €9 Million in Taxes for Token Transfers

In Spain, cryptocurrency transactions are taxed even without generating profit. An investor declared operations and initially paid around €5 million in taxes, but three years later received a new demand for an additional €9 million. The claim was based on token transfers into DeFi protocols and a loan taken in stablecoins, reports Periodista Digital.

The Spanish Tax Agency (AEAT) classified the token transfer and the crypto loan as capital gains. However, this interpretation contradicts Article 33 of the IRPF law, which defines capital gains only in the presence of actual economic benefit and a change in net assets. Legal experts highlight that in this case there was no profit, ownership transfer, or withdrawal of funds, but the tax authority treated these technical actions as realization of capital.

This approach has been applied before: taxes were charged on stablecoin loans and token transfers to protocols like Beefy or Tarot. The practice diverges from the legal definition of taxable events and underscores the lack of clear rules for digital assets.

Appeal and Legal Barriers

Challenging such tax claims is highly problematic. The first appeal stage is the Central Economic-Administrative Tribunal (TEAC), which is formally tasked with reviewing complaints but is effectively under the Ministry of Finance. Members of the tribunal are appointed by the same authority whose decisions they must assess, raising questions about impartiality.

In 2020, the Court of Justice of the EU examined the Grupo Santander case on tax exemptions. The EC considered them unlawful state aid. TEAC tried to refer the case to Luxembourg, but the EU Court ruled that TEAC is not an independent judicial body since it is subordinated to the Finance Ministry. This reinforced concerns that Spain’s first-level tax appeals lack judicial independence.

For taxpayers, this creates harsh conditions. Suspension of enforcement is only possible if the disputed amount is fully paid or a bank guarantee is provided. Otherwise, AEAT can immediately seize accounts, freeze assets, and block digital wallets—even before the complaint is reviewed. In practice, taxpayers are punished before their appeals are heard.

Complaints in TEAC take between 26 and 54 months to resolve, and cross-border cases may drag on for 7–8 years. During this period, investors risk losing access to funds, frozen accounts, and illiquid assets. Even a favorable decision cannot compensate for the financial and reputational damage.

EU Concerns and Comparisons

In 2025, the European Commission highlighted systemic flaws in Spain’s justice system: lengthy proceedings, dependence of administrative tribunals on the executive, and limited access to judicial protection. The report stressed that these shortcomings undermine Article 6 of the European Convention on Human Rights, which guarantees the right to a fair trial.

Fiscal Justice and Liberties have repeatedly pointed out this imbalance. Pressure from AEAT on digital assets grows, while legal safeguards remain weak. The result is a tax regime where enforcement is aggressive but rights are poorly protected.

Other EU countries operate differently. In France and Germany, filing an appeal automatically suspends collection. In Estonia, the presumption of good faith applies: taxpayers can voluntarily declare digital assets, and no measures are taken until a final decision is made. In Spain, however, investors must first pay or provide a guarantee before exercising their right to appeal—making it a privilege for wealthy taxpayers.

The European Commission has already launched discussions on tax procedure reforms, including suspending enforcement during disputes and harmonizing access to justice across the EU. But until such initiatives move forward, Spain continues to be seen as a high-risk jurisdiction for investors in digital assets.

The "Reverse Beckham Law" Contrast

This tax pressure contrasts sharply with Spain’s preferential regimes. In 2005, the country introduced the “Beckham Law” for foreign athletes, who paid taxes only on income earned domestically. In 2023, it was relaunched for tech specialists. However, while some enjoy tax breaks, crypto investors face harsh taxation even in the absence of profit.

Legal experts at Lullius Partners argue that Spain still lacks clear principles for taxing cryptocurrencies and tokenized assets. It remains uncertain under what conditions token transfers are taxable events. This creates a legal asymmetry: some groups benefit from exemptions, while others are subjected to aggressive taxation.

The issue goes beyond fiscal policy. Articles 6 and 13 of the European Convention protect the right to an independent court and against pre-emptive asset seizure. Spain’s model is the opposite: enforcement comes first, appeal second. This undermines investor confidence and erodes trust in the rule of law.