Trading taxes in Spain: a basic guide to avoid surprises
In Spain, gains from buying and selling assets (stocks, ETFs, crypto, currencies) are taxed in the savings base of income tax, with brackets from 19% to 28% depending on the amount. Understanding the basics saves you surprises at tax time. This is a general guide, not tax advice: for your specific case, consult an adviser.
How the savings base works
Capital gains and losses (what you gain or lose when selling higher or lower than you bought) go to the "savings base", taxed by brackets. Broadly: the first few thousand euros of gain are taxed at 19%, and the percentage rises through brackets as you earn more, up to 28% for the highest gains. It's a progressive system: you don't pay the same rate on everything.
The key: you're only taxed when you SELL
A point that confuses many: as long as you don't sell, there's nothing to declare for that position, even if it has risen a lot. The gain (or loss) "materialises" at the moment of sale. Buy and hold generates no tax; selling at a profit does. This has implications for how you plan your sales.
Offsetting losses: your best ally
Here's what many people don't take advantage of: losses can be offset against gains. If in a year you made €1,000 on some trades and lost €400 on others, you're taxed on the difference (€600), not the €1,000. And if you have losses left over, you can carry them to following years (within limits). Keeping track of your losses is, literally, money.
The crypto case
Crypto is taxed like the rest: as a capital gain when you sell or swap one for another. Watch that last part: swapping Bitcoin for another crypto is also a taxable event, even if you never went through euros. There are also specific reporting obligations for crypto held abroad. It's the area where most people make mistakes out of ignorance.
The typical mistake: not keeping records
The tax authority expects you to know the buy and sell price of each trade to calculate the gain. If you trade a lot and keep no record, reconstructing it in April is a nightmare. Download your broker's reports periodically and save them. Good records don't just save you stress: they ensure you don't overpay because you can't prove your costs.
Where to start
The essentials: save all your trade reports, understand you're only taxed on selling, and use loss offsetting. When your numbers start getting serious, a tax adviser pays for itself. This article gives you the general map; your specific situation (residence, volume, asset types) may have nuances only a professional can fine-tune.