How to Pay Taxes on Cryptocurrency

How to Pay Taxes on Cryptocurrency

More and more often, the tax  already knows you have crypto

We help you understand what taxes arise from crypto - and how to pay them minimum, but according to the law.

Consultation cost from 250 Euro

Are you trading, investing or earning income in cryptocurrency? Then it is important to understand How pay taxes on cryptocurrency: Tax authorities in Europe, the UK, Switzerland, the UAE and other countries are already actively exchanging data, including crypto transactions.

Incorrect declaration may result in fines, blocking and loss of assets.

What is included in the Jurisprudential service

1. Strategic Session and Crypto Assets Audit
2. Determining the tax model (income, capital gains, trade, business)
3. Selection of jurisdiction and tax residency
4. Preparation of reports, simulation of declarations, compliance
5. Declaration via Modelo 100, 720, 714, 721, IRPF, IS, IAE etc.
6. Structuring crypto assets and protection through SL, holdings, trusts

What taxes arise when working with cryptocurrency

1. Income tax

1. Received payment in cryptocurrency for work or services? This is considered regular income.
2. The tax is calculated at the rate of your country (in Spain - up to 47%).

2. Capital gain tax

1. Sold crypto for more than you bought it for? The difference is your taxable income.
2. In the EU, the tax varies from 10% to 28% depending on the storage period and jurisdiction.

3. Commercial use of cryptocurrency

1. Frequent trading or crypto business may be considered as an activity subject to VAT and corporate tax.

4. Dividend tax and wealth tax

1. If the crypto is part of the total capital (for example, in Spain - above €700), a wealth tax.
2. Also important: profit distribution through SL is taxed as dividends.

Where cryptocurrency is visible - and what the tax authorities monitor

It is seen:

1. Large exchanges with KYC (Binance, Kraken, Coinbase, Bitstamp, etc.)
2. Integrations via CRS (automatic exchange)
3. Exchange offices, if you showed your passport
4. Any bank receipts of fiat funds

Not visible:

We offer a solution at the level of international standards

1. Decentralized wallets (TrustWallet, Metamask, Ledger)
2. Small exchanges without verification (partially)
3. P2P transfers and cold storage - until used for fiat

But! Anything can become visible, esli vy:

— made a transfer to the card,

— deposited/withdrew money through a well-known exchanger,

— they exposed a wallet linked to an exchange with KYC.

Why the tax office finds out about cryptocurrency

1. CRS/DAC Automatic exchange of tax information
2. Travel Rules — tracking transactions from €1
3. KYC/AML — verification of clients on exchanges and in fintech services
4. Source of Funds — it is increasingly necessary to explain the origin of crypto assets when purchasing real estate, opening an account, or applying for a residence permit.

How we help

1. We are holding a strategic session: where did the crypto come from, how was it stored, what was done with it and actually How to pay taxes on cryptocurrency
2. We analyze possible tax implications in a specific jurisdiction
3. We prepare declarations, reports, positions for the tax authorities
4. We structure assets (through SL, holdings, trusts)
5. We provide support during banking compliance, audits, and capital legalization

Don't be scared, act strategically

The main thing is not to try to “hide” the crypto, but understand in advance how the system sees it.

Crypto taxes can be paid legally, minimizing risks and optimizing the rate.

This is what we do at Jurisprudential - honestly, professionally and with a future-proofing.