Quick answer: a security token is a tokenised transferable security, not a cryptocurrency. It is taxed under Personal Income Tax (Ley 35/2006, LIRPF) like any security: dividends and interest are investment income, and gains on sale are capital gains. Both fall into the savings base, taxed between 19% and 30%.
Why a security token is not taxed like a cryptocurrency
The tax treatment of a digital asset depends on its legal nature, not on the technology used to represent it. A security token carries the economic rights of a transferable security (a share in profits, credit rights, rights over assets) and therefore qualifies as a financial instrument. This places it under securities-market rules and outside the specific crypto-asset regime (MiFID II (Directive 2014/65/EU); Ley 6/2023 (LMVSI)).
MiCA (Regulation (EU) 2023/1114) confirms this expressly: it excludes from its scope crypto-assets that are financial instruments, which remain governed by securities law (Art. 2(4)). The tax consequence is direct: the token is treated as the underlying security it digitises, and the same Personal Income Tax rules apply as to a traditional share or bond.
Investment income: dividends, interest and coupons
When the security token grants periodic economic rights, the amounts received qualify as investment income (rendimientos del capital mobiliario). This covers tokens that distribute dividends on an equity holding, those that pay interest or coupons on a debt instrument, and income from the transfer of own capital to third parties.
This income is included in the savings tax base and taxed under the scale in force. Income is attributed when it becomes legally due, regardless of when it is actually collected (Personal Income Tax Law (Ley 35/2006, LIRPF), Arts. 25 and 14).
Deductible expenses
Only securities administration and custody costs, narrowly construed, are deductible from investment income. Discretionary portfolio-management fees and similar items are not admitted. For tokens held on regulated platforms, it is advisable to document which fees correspond to custody in order to support their deductibility (Personal Income Tax Law (Ley 35/2006, LIRPF), Art. 26).
Capital gains and losses on disposal
The sale, exchange or transfer of a security token generates a capital gain or loss, calculated as the difference between the transfer value and the acquisition value. The acquisition value includes the price paid plus the costs and taxes inherent to the purchase; the transfer value is the amount received less the costs inherent to the sale (Personal Income Tax Law (Ley 35/2006, LIRPF), Arts. 33 to 35).
Where homogeneous tokens were acquired on different dates, the FIFO method applies: those acquired first are deemed transferred first. This rule, typical of securities, is relevant for correctly setting the acquisition value of each batch sold.
Worked example
An investor buys security tokens in a real-estate issuance for 20,000 euros, with a 150-euro purchase fee. Two years later they sell them for 26,000 euros, with a 180-euro sale fee. The acquisition value is 20,150 euros and the transfer value 25,820 euros. The capital gain is 5,670 euros, which is included in the savings base and taxed at 19% (as it falls below the first 6,000-euro threshold): a tax charge of 1,077.30 euros.
Inclusion in the savings base and the scale in force
Both investment income and capital gains on disposal are included in the savings tax base. A progressive bracketed scale applies to the taxable savings base. For the 2025 tax year, following the reform effective from 1 January 2025, the scale is as follows: 19% up to 6,000 euros; 21% from 6,000 to 50,000 euros; 23% from 50,000 to 200,000 euros; 27% from 200,000 to 300,000 euros; and 30% above 300,000 euros (Personal Income Tax Law (Ley 35/2006, LIRPF), Art. 66; Ley 7/2024 (BOE-A-2024-26694)).
The 30% top bracket is the novelty: the maximum marginal savings rate rose from 28% to 30% for the portion exceeding 300,000 euros. Most retail investors sit in the first two brackets, so virtually all of their security-token income is taxed at 19% or 21%.
Offsetting losses
Savings capital losses are first offset against gains of the same type. If a negative balance remains, it can be offset against the positive balance of investment income, subject to a limit of 25% of that balance. Any unused excess is carried forward to the following four tax years (Personal Income Tax Law (Ley 35/2006, LIRPF), Art. 49).
Withholding on account
Investment income from securities is subject to withholding on account of Personal Income Tax when the payer is a withholding agent established in Spain. The general withholding rate on dividends and interest is 19%. That withholding is an advance payment credited against the final liability in the return.
Capital gains on the disposal of these securities are generally not subject to withholding. Taxation is settled when the annual return is filed. Where the issuer or intermediary is non-resident, no withholding may be applied in Spain, which does not relieve the taxpayer of the obligation to declare the income (Personal Income Tax Law (Ley 35/2006, LIRPF), Arts. 99 to 101).
Reporting obligations and the Modelo 721 nuance
Modelo 721 (Order HFP/886/2023) is the information return on virtual currencies held abroad. It requires reporting when the combined balances at 31 December, valued in euros, exceed 50,000 euros, and is filed between 1 January and 31 March of the following year.
Here the decisive nuance arises. Modelo 721 is designed for virtual currencies and crypto-assets, not for securities. A security token that qualifies as a transferable security follows the reporting logic of securities, not necessarily that of Modelo 721. The boundary is not always clear-cut when an asset is represented using distributed ledger technology, and the specific classification of each issuance requires a case-by-case analysis. Before deciding which information return applies, it is advisable to check the token's legal nature with a professional, because a misclassification alters both taxation and reporting obligations.
Frequently asked questions
Are security tokens taxed like cryptocurrencies under Personal Income Tax?
No. As tokenised transferable securities, they are taxed like securities: dividends and interest as investment income and gains as capital gains, all in the savings base. The crypto-asset classification is reserved for digital assets that are not financial instruments.
What rate do I pay when I sell a security token at a profit?
The gain is included in the savings base and taxed by brackets: 19% up to 6,000 euros, 21% up to 50,000 euros, 23% up to 200,000 euros, 27% up to 300,000 euros and 30% above. The applicable rate depends on the total amount of your savings base for the year.
Do I have to declare my security tokens on Modelo 721?
Modelo 721 is intended for virtual currencies held abroad. A security token that qualifies as a security does not simply fit into that return and may follow the reporting logic of securities. Because the boundary is delicate, it is advisable to verify the classification with an adviser before filing or omitting the return.
Is there withholding when I receive dividends from a security token?
If the payer is a withholding agent resident in Spain, yes: the general rate is 19% on the dividend or interest. That withholding is credited against the final liability. If the issuer or intermediary is foreign, there may be no withholding, but the income remains reportable.
What this means for you
If you invest in security tokens, treat their taxation with the same logic as a share or a bond: identify whether each receipt is investment income or a capital gain, keep a record of acquisition dates and values to apply the FIFO method, and check the withholding borne. The point that generates most errors is reporting: do not assume that Modelo 721 applies to you just because the asset is digital. Verify the legal nature of each token before declaring.
This content is for general information and educational purposes only. It is not legal, tax or investment advice and does not replace consultation with a qualified professional. Regulation on tokenisation and crypto-assets evolves; always check the version in force of the rules cited in the BOE (boe.es) and EUR-Lex (eur-lex.europa.eu).
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