Two Treasury inspectors are proposing a special regime to tax Bitcoin (BTC) profits in Spain. This initiative by Juan Faus and José María Gentil pioneers the distinction of digital currencies from altcoins as a first step towards recognizing their role as stores of value.
This approach creates enthusiasm in the field. Álvaro D. Maria, a lawyer and Bitcoin expert, describes this as a “huge undertaking” at X. This is an attempt to avoid evasion, while at the same time Criticize the current FIFO standards of the General Administration of Taxation (DGT).
The FIFO (first in, first out) standard assumes that users remove the oldest units they have purchased when selling or using Bitcoin. This standard assumes digital assets are like securities and first calculates the profit per acquisition.
In Consultation V0975-22, the DGT asserts that “capital gains or losses must be calculated independently for each type of cryptocurrency.”
However, the judgment of the Basque High Court (STSJPV 41/2025) questions this and refuses to equate them with traditional securities due to their uniqueness and lack of regulatory adaptation, as cited by the Cryptoassets Market Regulation (MiCA) to emphasize their novelty in community order.
In light of this, the two financial inspectors’ proposals are: Propose an exclusive voluntary system for Bitcoin. Basically, we are asking that users be allowed to split their holdings into different wallets (cold wallets, hot wallets, exchange accounts, etc.) in principle.
In this way, you can choose how returns are calculated within each portfolio. That is, continue on a FIFO basis or use a weighted average price. This is very similar to how currencies are normally handled.
Inspectors say aggressive taxation will drive out savings
In that sense, Faus and Gentil point out that when a user moves Bitcoin from one wallet to another, the value is updated at that moment and taxes are paid accordingly. In this way, the door is closed to tricks that postpone taxes indefinitely, they added.
The authors argue that those who do not follow the voluntary model will continue to use classic FIFO. “Outside special regimes, the FIFO method needs to be maintained to encourage its adoption,” they point out.
They added that there will be no change for the cryptocurrencies Ethereum, Solana, and other altcoins as they will continue to be taxed as like-kind securities with FIFO requirements, just like stocks.
The inspectors concluded that “a revolutionary phenomenon like Bitcoin requires an approach that enables a global vision” and that without fiscal neutrality, wealth will ultimately be transferred or hidden away under self-control.
The authors warn that Aggressive taxation deprives Spain of savings and economic activityEspecially when 70% of family assets are in housing, compared to the largest weight in financial assets in Europe, and there are neighboring jurisdictions with more favorable rules.
Taxation on housing is much more friendly (e.g. you don’t have to pay capital gains if it’s your main residence, it’s exempt if it’s an inheritance). And since the gold and stocks are already in other countries, Bitcoin is prevented from becoming a real savings alternative.
Changes required to Spain’s Bitcoin tax
The initiative has sparked positive feedback within the ecosystem, as it means a reduction in the tax burden in Spain, but some believe there may be a better fix.
Economist and tax advisor José Antonio Bravo Mateu commented: “This proposal is not bad at all, but for simplicity we would prefer to use a common weighted average cost, which cushions the effect of price increases over time, as HMRS does in the UK.”
However, if the inspector’s proposal is approved, It will change the opinion of the Directorate General of Taxation. (DGT) has already made it clear that digital assets are considered “intangible assets” rather than money, which CriptoNoticias has already reported.
The inspector general’s proposals advocate treating it as “real money” with a neutral tax regime for Personal Income Tax (IRPF) purposes and encourage its implementation without tax evasion.