Taxation of NFTs in Spain: Opportunities and Disadvantages Compared with Europe

Taxation of NFTs in Spain: an opportunity or a disadvantage compared with Europe?

In February 2025, the Directorate-General for Taxes (DGT) set out its approach to the taxation of NFTs in Spain in binding ruling V0138-25. This article examines their treatment for Personal Income Tax and VAT, the impact on artists and creators, and the comparison with France, Germany, Italy and Portugal.

Binding ruling V0138-25: a turning point in Spain

In ruling V0138-25, the DGT held that the professional sale of NFTs:

• Is an economic activity for Personal Income Tax purposes (Articles 27 et seq. of the LIRPF).
• Is an electronic service subject to 21% VAT.

The case was brought by a digital artist who sells works through marketplaces and metaverses. The ruling provides legal certainty for creators, but also creates a demanding tax environment compared with other EU countries.

What is an NFT, and how does the Tax Agency classify it?

Non-fungible tokens (NFTs) are unique digital assets linked to a digital file or a specific right, whose authenticity is certified using blockchain technology. The DGT clarifies that:

• NFTs are not currencies or fungible goods and therefore do not share the VAT exemption applicable to cryptocurrencies.
• They are not supplies of physical goods, but electronic services.
• The taxable amount is the total transaction price. If payment is made in cryptocurrency, it is converted into euros at the time of sale.

Personal Income Tax: from capital gains to economic activity

In Spain, income from NFT sales is treated as income from an economic activity where there is habitual activity and an organised deployment of resources. This entails:

• Inclusion in the general Personal Income Tax base, with progressive rates stated in the article as reaching 47%.
• The possibility of deducting expenses associated with the activity, such as software, equipment and platform commissions.
• Greater administrative complexity for artists and creators.

By comparison, occasional NFT sales in other European countries may be treated as capital gains and taxed at lower flat rates.

VAT on NFTs: the impact of the 21% rate

The Spanish approach is clear: NFT sales are electronic services subject to 21% VAT. This follows the European Commission’s approach in Working Paper No. 1,060/2023, which treats NFTs as automated services supplied digitally.

The concern is that this treatment may put Spain at a competitive disadvantage compared with countries that apply reduced VAT rates or simplified regimes.

European comparison: Spain, France, Germany, Italy and Portugal

• France: treats NFTs as “digital assets” and applies 20% VAT. For Personal Income Tax, the 30% flat tax may be more attractive than Spain’s progressive scale.
• Germany: tends to treat NFTs as services subject to 19% VAT. Occasional sales may be treated as capital gains for Personal Income Tax, reducing the tax burden.
• Italy: applies 22% VAT but offers simplified regimes for the self-employed, which may reduce the effective burden.
• Portugal: has no specific NFT rules and retains a legal gap that offers flexibility, but also creates legal uncertainty.

The article’s comparison is that Spain combines the highest VAT rate (21%) with progressive Personal Income Tax, which may disadvantage creators compared with other Member States.

Criticism: legal certainty comes at a high cost

Binding ruling V0138-25 provides clarity in an emerging sector, but it also raises concerns:

• Competitive disadvantage: Spain taxes NFT activity more heavily than France or Germany, according to the article’s comparison.
• Administrative complexity: invoicing obligations and the role of marketplaces create additional burdens.
• Risk of digital talent leaving: artists may choose to establish themselves in countries with more favourable regimes.

The role of platforms: intermediaries and invoicing responsibilities

Because the identities of final buyers may be unknown, the DGT considers that marketplaces should issue invoices in their own name. This approach:

• Strengthens tax oversight.
• Limits creators’ autonomy.
• Increases dependence on international platforms, many of them outside the EU.

Conclusion: a clear framework, but limited competitiveness

With binding ruling V0138-25, Spain has provided regulatory clarity: NFTs are taxed as economic activity for Personal Income Tax purposes and as electronic services subject to 21% VAT.

However, the European comparison points to a risk: Spain’s extensive regulation may discourage innovation and push creators towards more flexible jurisdictions. The challenge is to balance legal certainty and tax competitiveness before the sector seeks a base elsewhere in the European Union.