Spain’s tax filing season has highlighted the friction between the Bitcoin (BTC) ecosystem and the traditional financial system. Taxpayers who have generated capital gains in BTC and other cryptocurrencies now face two significant challenges: the occurrence of on-chain tax events and interference with their operations by banking companies.
The first drawback arises from the very nature of income tax. Many cryptocurrency investors find that after making big profits, for example, a profit of 20,000 euros leads to a payment of 4,000 euros to the Spanish Treasury. They do not have the fiat liquidity needed to service their debts.
This shortage has forced Spanish users to sell some of their holdings for digital currency. But this practice creates what Jesús Lorente, CEO of tax consultancy CL Crypto, calls “tail-biting squirrels.”
If the above is sold to pay the previous year’s tax, A new tax event is automatically generated This must be declared and paid to the Spanish Treasury the following year. This creates a loop of debt and capital reductions that is difficult to break, Lorente explains.
The second obstacle occurs when the investor successfully sells. When you try to transfer funds from an exchange to a traditional banking organization to pay taxes, It is common for financial institutions to block accounts According to internal compliance and risk policies.
Lorente said the situation leaves taxpayers legally obligated to pay, but their funds are held in the banking system, leaving them vulnerable.
To avoid such conflicts, CL Crypto points to a financial solution that is gaining traction on the market: loans secured by cryptocurrencies. As Lorente explains, using a platform that allows you to leave stablecoins or Bitcoin as collateral in exchange for a loan in euros, Get the liquidity you need without activating a taxable event.
«Leaving assets as collateral does not trigger a tax event because you are not selling the assets. You’re just asking a third party to save it for you (…) From an income perspective, we don’t generate any tax events,” says the tax advisor and business manager.
Furthermore, the use of services that integrate a unique IBAN (Account Number Identification Code) avoids the systematic blocks of traditional banking and makes operations easier.
A dual purpose strategy
In the midst of this panorama, Spanish investors, who will be forced to declare their crypto holdings to the Treasury in 2026, no longer have much room for maneuver. This is in view of the country accelerating reporting obligations for digital currencies through new declaration models such as 175, as reported by CriptoNoticias.
Therefore, the use of secured loans has emerged as a useful technological tool in two ways. Enables those investing in Bitcoin and cryptocurrencies to be Treasury compliant Protect your long-term market position About digital currency.
However, you should consider that although loans can be a solution to the problems identified by CL Cripto, they also come with certain risks. among them, Accumulation of interest and liquidation of collateral assets.
In any case, the idea is to meet tax obligations without reducing capital or getting stuck in an endless financial loop, justifying the use of decentralized finance and hybrid platforms as an ally in tax planning.
(Tag translation) Bitcoin (BTC)
