Tax exemptions for digital assets

Tax exemptions for digital assets

On 24 September 2024, royal decrees no. 788 and 789 issued under the Revenue Code were published in the Royal Gazette, granting tax exemptions for digital assets.

Royal decree no. 788 extends a VAT exemption for the sale of cryptocurrency and utility tokens through licensed digital exchanges, as well as expanding the exemption to sales made through licensed brokers and dealers, effective from 1 January 2024 onwards. A VAT exemption for sales made through licensed digital exchanges under royal decree no. 744 expired on 31 December 2023.

Royal decree no. 789 allows individuals to exclude from their personal income tax returns the share of profits or other similar benefits obtained from holding cryptocurrency and utility tokens received from 1 January 2024 if 15% withholding tax has been deducted from such income. The taxpayer cannot ask for a refund of the tax deducted or use it as a tax credit.