Investors who wish to open a cryptocurrency company in Spain are required to register a local company of a chosen business form by following the rules for legal entity registration in Spain, as laid out in the Spanish Corporate Enterprises Act.
Additionally, entrepreneurs need to consider the requirement to obtain a crypto license in Spain, as these companies fall under the category of virtual asset service providers (VASP) and are under special registration regulations.
Our team specializing in company formation in Spain can provide guidance throughout the business creation process and counsel on the recent legal changes and requirements that apply to those who wish to obtain a VASP license in Spain.
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How to open a crypto company in Spain
The list below highlights the main steps needed to start a business in Spain and they also apply in the case of crypto companies:
- choose the business structure;
- obtain the provisional tax identification number;
- verify the availability of the chosen business name;
- prepare the company’s constitutive documents;
- open a bank account and deposit the minimum capital;
- register the business with the Commercial Registry.
Our team can give you more details about these steps and the post-registration procedures.
How to apply for a crypto license in Spain
If you want to open a cryptocurrency company in Spain, it is essential to first obtain a crypto license in Spain.
A crypto license in Spain is issued to companies that comply with a set of rules. Let’s review some of the requirements that apply to these types of businesses.
- First, you need to register a legal entity. This may be Sociedad Limitada (SL), the Spanish version for limited liability companies and the most popular at the moment.
- You need to make sure that you have a physical office for your cryptocurrency company in Spain.
- Spanish authorities are asking shareholders to prove a clear criminal record.
- A detailed business plan is needed. It should include information about the activities you want to undertake, the platforms you will work with as well as protection and security policies for customers.
- You must also open a bank account and have approval from the Central Bank of Spain for virtual currency transactions.
- The company’s employees should have relevant experience in the cryptocurrency field.
- You must also comply with the Anti-Money Laundering Law in Spain. Our agents specializing in company registration in Spain detail some of these relevant legal provisions below.
Once you prepare these documents you can apply for a crypto license in Spain.
Our local agents can offer personalized assistance if you want to open a cryptocurrency company in Spain.
The VASP register in Spain
Companies that obtain the virtual asset service provider license are included in a Register of Providers by the Bank of Spain (Banco de España), the country’s national central bank and also the banking sector’s supervisor.
This database is dedicated to providers of virtual asset services, those that offer virtual currency exchange services and/or those that deliver services related to electronic wallets (as digital wallets are referred to in Spain).
The Register includes the following information about companies with a crypto license in Spain:
- the company’s code;
- the type of company;
- the company’s registered name;
- the date of registration;
- the country in which the company is registered.
The Register contains information about Spanish companies that have obtained the VASP license in Spain, as well as foreign companies that provide these types of services and are registered for this purpose in Spain as well.
Presently, the Register includes more than 120 companies with a crypto license in Spain. These are mostly Spanish SL and SA companies and also German, Dutch and American legal entities.
Foreign investors who wish to know more about the current registration and compliance requirements and the crypto license in Spain can reach out to our team for more information.
Cryptocurrency mining in Spain
Companies performing cryptocurrency mining activities are taxed under new rules of law imposed by the Spanish government. Cryptocurrency mining refers to the procedure through which transactions carried out through virtual currencies are verified. Those interested in company registration in Spain in this field should know that the National Directorate of Tax announced that cryptocurrency mining activities will be taxed as such operations are included in the category of economic activities.
In this sense, cryptocurrency miners will be required to register with the Spanish authorities for taxation purposes and this should be completed prior to submitting the taxes associated with operations deriving from cryptocurrency mining.
Relevant laws for investors who open a cryptocurrency company in Spain
As previously outlined by our team, companies that deal in virtual assets need to obtain the crypto license in Spain from the relevant banking sector regulators. Moreover, these companies need to comply with relevant laws and regulations, including those for anti-money laundering.
Royal Decree 7/2021 regulates the VAT treatment of electronic commerce and describes the rules applicable to companies that engage in these types of activities and also those that offer goods and services to customers from Member States or from other third countries.
Investors who open a company in Spain that offers virtual currency services need to observe the provisions of Law 10/2010 of 28 April 2010 on the prevention of terrorist financing and money laundering. For this purpose, a company applying for a crypto license in Spain will need to:
- Offer sufficient proof that it observes the regulations on the prevention of money laundering and terrorist financing;
- Implement proper internal procedures and an internal unit (department, as may be the case) dedicated to the prevention of money laundering and terrorist financing;
- Maintain adequate commercial and professional reputation.
As virtual currency is part of the Spanish financial system, entrepreneurs who want to open a cryptocurrency company in Spain must comply with the requirements and regulations of this set of laws.
By definition, virtual currency is any digital value that is not issued by a central bank but is accepted as currency, storage, or transfer. Those who offer this type of service must ensure that it provides protection and security to its customers and that they take anti-money laundering measures in Spain.
If you want more details on this topic, we invite you to talk to our local agents. We can help you obtain a crypto license in Spain.
Virtual currency transaction taxation in Spain
In Spain, the exchange of virtual currencies such as Bitcoin for fiat currency generates capital gains or loss. Our team highlights several tax rates for individuals who derive income from this type of trade. They are subject to taxation according to the following rates:
- 19% on the first EUR 6,000 of income;
- 21% on income over EUR 6,000 and up to EUR 50,000;
- 23% on income over EUR 50.000 and up to EUR 200,000;
- 27% on income that exceeds EUR 200,000 but is below EUR 300,000;
- 28% on income over EUR 300,000.
Alternatively, if you would like to know about corporate taxation for those businesses that hold a VASP license in Spain, please reach out to our accountants in Spain. We also provide solutions for bookkeeping in Spain.
Businessmen are invited to contact our team of consultants in company formation in Spain for assistance with the registration steps imposed under the local legislation. We can help you open a cryptocurrency company in Spain.