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Spain is largely concentrating on growing and benefiting from various IT and technology fields. As a result, they do have a sizable number of native cryptocurrency investors in their nation. More than 6.8% of all Spaniards are thought to own cryptocurrencies or participate in cryptocurrency-related activities at the moment.
Despite the fact that Bitcoin and other cryptocurrencies appear to be unregulated by the Spanish government, bartering laws outlined in the Civil Code are still thought to apply to crypto transactions there. As a result, cryptocurrency businesses must adhere to standard business regulation laws, including filing value-added tax account statements, among other things. Similarly, as is their obligation as Spanish citizens, Spanish crypto investors are expected to accurately report and pay their taxes in relation to any profits they make from cryptocurrency trading and/or mining.
Since they are not regarded as financial instruments in Spain, cryptocurrencies are still largely unregulated there. Despite this, the Spanish government is quick to adapt to make sure that this new industry at least adheres to anti-money laundering laws, basic consumer security, and preventing illegal activities.
In light of that, it is relatively simple for a citizen of Spain to begin investing in cryptocurrencies. Here are the legalities, regulations, purchasing methods, and other details in relation to buying cryptocurrency in Spain.
Best Crypto Exchanges in Spain
Is it Legal to Use Crypto in Spain?
Simply put, the Spanish government does not impose any restrictions on any crypto currency transactions, purchases, sales, or trading. However, because of the numerous instances of financial and securities fraud, the Spanish government anticipates that everyone will be extremely aware of and concerned about cryptocurrencies. More importantly, cryptocurrency is not accepted as legal tender by the Spanish government.
Since initial coin offerings (ICOs) are considered financial instruments, they may be subject to regulation under the Alternative Investment Fund Managers Directive, the Prospectus Directive, and the Markets in Financial Instruments Directive II (MiFID II).
The Spanish Central Bank (SCB) and the National Securities Market Commission (CNMV) have both approved and verified initial coin offerings (ICOs) and cryptocurrencies as of this writing without encountering any problems. It is still unclear how cryptocurrencies will be regulated because the legislation’s resolutions are still being developed and examined. Few of the current proposals emphasize things like allowing crypto asset service providers, mass campaigns, and protecting the rights of small investors.
To combat tax avoidance practices in such a booming market, tax regulations have been put in place in light of the widespread use of cryptocurrencies. A person who resides in Spain will be subject to a variable tax rate ranging from 10 to 23% on capital gains from the sale of cryptocurrencies. The higher rate is applicable to gains over EUR 50,000.
More crypto regulations exist in Spain that have not been mentioned, but it is clear that the country’s leaders want to achieve a balance between investor protection and allowing for pro-crypto sentiment in order to facilitate the country’s closely watched and regulated growth of the crypto economy.
Is it Simple to Buy Crypto in Spain?
Despite the fact that there are no official regulations governing cryptocurrencies, purchasing them in Spain is simple. The country offers a variety of options for purchasing cryptocurrencies, including brokerage, peer-to-peer exchanges, third-party service providers, and more. However, using Bitcoin ATMs and cryptocurrency exchange websites is the more common and secure way to purchase cryptocurrency in Spain.
Most buying platforms will require you to have a cryptocurrency wallet and identification card in order to start a transaction before you can buy cryptocurrency.
How to Buy Crypto and Bitcoin in Spain?
Now that we know the legal requirements for crypto assets in the nation and the responsibilities of Dutch crypto investors, here is a guide on where to buy cryptocurrency in Spain. Although buying Bitcoin in Spain is the main focus of this guide, you can use these steps to buy other cryptocurrencies.
- The two most popular ways to buy Bitcoin and other cryptocurrencies at the moment are through Bitcoin ATMs and a platform for cryptocurrency exchanges.
You can purchase and withdraw Bitcoin (BTC) and other well-known cryptocurrencies using Bitcoin ATMs, which are automated teller machines. These devices function in the same way as a typical ATM. Prepare your crypto wallet and visit one of the many locations in Spain with specialized ATMs to use a Bitcoin ATM to purchase cryptocurrency. Afterward, take these actions:
To prove your identity, present a valid ID.
Use the machine's camera to scan the QR code on your crypto wallet. This can include a Bitcoin public address from your paper wallet, an application, or an address from any cryptocurrency exchange that you own.
Fill the machine with your fiat currency (EUR).
Confirm the transaction and the amount.
Expect the specified amount of Bitcoin (BTC) or cryptocurrency to appear in your crypto wallet.
Crypto exchanges are another option for purchasing cryptocurrency. Crypto exchanges are far more user-friendly, provide more options, and are far safer than Bitcoin ATMs. To begin, select a cryptocurrency exchange that meets your standards. There are several crypto exchanges operating in Spain, but the most popular among current crypto investors are: Crypto.com, Binance, and Coinbase. Once you’ve decided on your exchange, proceed as follows:
Visit the cryptocurrency exchange's website to register and verify your account. You might be required to present a valid ID card as well as some personal information. Once done, you should have access to the crypto services the exchange provides.
Add fiat money to your cryptocurrency exchange account, or link a bank account, an e-wallet, or a debit card. This will serve as a way to pay for any crypto purchases you’ll make in your account.
Find the cryptocurrency you want to buy in the market, like Bitcoin (BTC), for instance. Select it and click Buy.
Give the necessary details, including the purchase amount and method of payment. Review and confirm the transaction. Then you’re done.
Best Crypto Wallets for the Spaniards
There are many excellent wallets, ranging from online hot wallets to offline cold wallets, if you’re looking for the best cryptocurrency wallet in Spain. The Ledger Nano X hardware wallet, however, is the best cryptocurrency wallet for storing cryptographic assets and has proven to be quite a great investment. Your private keys and cryptographic assets can be kept safely in one location, and more importantly, offline, with the help of this method. All Ledger wallets are among the safest and most affordable ones available, and they support more than 1,200 crypto assets, coins, and tokens.
Coinbase, Electrum, Exodus, and Trust Wallet are other excellent choices for crypto wallets.
Frequently Asked Questions
Purchasing cryptocurrencies with a credit card is feasible if you do so on the appropriate cryptocurrency exchange and use the appropriate credit card. Only a small number of credit card issuers permit the purchase of cryptographic assets, so check before you buy to make sure. Find a cryptocurrency exchange that allows credit cards as a form of payment next. Some crypto exchanges in Spain that allow this are Bitpanda, Bitstamp,and Coinbase.
You need to connect your credit card to your crypto exchange account. If you want to learn “how to buy cryptocurrency on cryptocurrency exchanges,” just adhere to the guidelines in this article.