How to Report Airdrop Income in Spain: Your Complete Tax Guide

Introduction: Airdrops and Spanish Tax Obligations

With the rise of cryptocurrency, airdrops—free distributions of tokens to wallet holders—have become a popular way for projects to gain traction. But in Spain, these “free” assets come with tax responsibilities. Failing to report airdrop income can lead to penalties from the Agencia Tributaria (Tax Agency). This guide explains exactly how to declare airdrop earnings in Spain, ensuring you stay compliant while navigating crypto taxes.

Understanding Airdrop Income Under Spanish Law

In Spain, airdrops are treated as taxable income at the moment you gain control of the tokens. The Agencia Tributaria classifies them as “income from movable capital” or occasional earnings, depending on context. Key principles:

• Taxable Event: Triggered when tokens are transferable or tradable in your wallet.
• Valuation: Income is calculated using the token’s fair market value in euros at receipt.
• Tax Rate: Airdrop income typically falls under Renta del Ahorro (savings income), taxed at progressive rates: 19% (up to €6,000), 21% (€6,000–€50,000), and 23% (above €50,000).

Step-by-Step Guide to Reporting Airdrop Income

Follow this process when declaring airdrops in your annual tax return (Declaración de la Renta):

1. Track Receipt Dates & Values: Record the date of each airdrop and the token’s euro value using exchange rates from reputable sources (e.g., CoinMarketCap) at that time.
2. Calculate Total Income: Sum the euro value of all airdrops received during the tax year.
3. Complete Form 100: Report the total under Box 2 (Rendimientos del Capital Mobiliario) in Section D. Specify “Criptomonedas – Airdrops” in the description field.
4. Include Supporting Documentation: Attach transaction histories from wallets/exchanges showing airdrop details.
5. Pay Taxes Owed: Submit Form 100 by June 30th annually. Use the Tax Agency’s online portal for electronic filing.

Common Mistakes to Avoid

Prevent these errors to avoid audits or fines:

• Ignoring Small Airdrops: All airdrops must be reported, regardless of value.
• Incorrect Valuation: Using post-receipt price fluctuations instead of the value at the exact time of receipt.
• Missing Documentation: Failing to keep wallet records proving ownership and transaction dates.
• Confusing Airdrops with Forks/Hardforks: These are separate events with distinct tax treatments.

FAQ: Reporting Airdrop Income in Spain

1. Are all airdrops taxable in Spain?

Yes. Even promotional or “free” tokens are considered income once you control them.

2. What if I receive airdrops worth less than €1?

You must still report them. Spain has no minimum threshold for crypto income reporting.

3. How do I value airdrops for illiquid tokens?

Estimate based on comparable assets or the project’s token sale price. Document your methodology.

4. Do I pay tax again when selling airdropped tokens?

Yes. Selling triggers capital gains tax on the difference between the sale price and the value declared at receipt.

5. Can I deduct expenses related to airdrops?

Generally no, as airdrops lack associated costs. Deductions apply only to active crypto trading or mining.

Conclusion: Stay Compliant and Organized

Reporting airdrop income in Spain requires diligence but avoids costly penalties. Maintain detailed records of every token received, use accurate valuations, and file Form 100 promptly. As crypto regulations evolve, consult a gestor (tax advisor) specializing in digital assets for complex cases. Proactive compliance ensures you benefit from airdrops without tax headaches.