In the case of Spain, and other nations, the focus has been on tax returns, which must cover capital movements involving cryptocurrencies. Cryptocurrencies have had to move outside of government, banking, and tax systems. In fact, they have been used as strategy to avoid taxes, which is why they are in the spotlight. That is why the latest European crypto asset regulations forces exchange platforms to be accountable to their users.
All cryptocurrencies go through this survey. This is how the Cryptocurrencies are beginning to be supervised in a similar way to bank accounts., so they are capital assets that are tax-declarable. This is the case with Bitcoin, Ethereum, Solana, and many other cryptocurrencies. However, not all cryptocurrencies are the same. There are cryptocurrencies with a peculiar mode of operation, which are also monitored by tax institutions in Europe and other nations. Such is the case with XRP, a cryptocurrency that works without blockchain and is closely linked to both banks and government procedures.
What are the characteristics of the XRP token?
This cryptocurrency emerged in 2013 as an alternative to Bitcoin and other cryptocurrencies. It is currently issued by Ripple. XRP price By March 2025, it is estimated at 2,2 euros (2,39 USD), which is quite low compared to Bitcoin. However, The purpose of XRP is not to have a high price, but a modest value., as it is a digital currency designed for everyday use, for shopping at the supermarket, at a stationery store, refueling your car, etc. It also has the following characteristics:
- Does not use blockchain, nor is it a cryptocurrency that requires mining. It works through agreements between cryptocurrency users, so it has more freedom.
- There is no limit on the amount of cryptosIn this case, XRP administrators opt to “burn tokens” as a strategy to keep the currency's price stable and to avoid excess supply.
- XRP works with a P2P system, conceived from the outset as a crypto complement to the banking system. XRP enables much faster transactions, with a scalability of 1500 transactions per second. Ideal for a bank that has to make a lot of transactions every day!
- La XRP cryptocurrency is already linked to many banks and government institutions. For this reason, XRP transactions are recorded among conventional banking transactions, linked to specific users.
From all the above, it is inferred that A common mistake is not declaring taxes on XRP receipts.A survey of incoming payments reveals that a person has earned money through XRP. Therefore, failing to report transactions involving this cryptocurrency almost certainly means a warning, with a fine or penalty for tax evasion.
The Treasury imposes fines of up to 20.000 euros for cryptocurrencies.
This penalty is already in place in Spain. However, with one caveat: if a taxpayer only acquires cryptocurrencies and does not conduct any transactions with them, then they do not need to declare them on their taxes. The reason is that buying cryptocurrencies is not something to consider for taxes.. Yes, they must be declared when They are received as payment, since it is assumed to be income, or when they are used to pay for something.
La Spanish Tax Agency has set its sights on cryptocurrencies, making it clear that they are only declared when they are: “capital gains or losses”. Of course, this includes XRP. This cryptocurrency has begun to be used for international payments, so it's already common both in Spain and the rest of Europe. Failing to declare crypto transactions is a risk, as fines can reach up to 20.000 euros.
Mistakes not to be made in the tax return
Let's focus on the case of XRP. A widely used crypto in banks, which is also usually received when accepting payments from outside Europe. Among European countries, the most common is to use the euro. However, a A frequent buyer of European products is the United States. Payments in XRP have become common in North America due to its speed and low fees. So it's no surprise that some people need to declare their XRP, and to do so, they should avoid the following mistakes:
- Declare the use of XRP when used to receive or make payments. Not when you buy this cryptocurrency in euros.
- A common question is the following: Should cryptocurrencies be declared even if they have not been converted into euros? The answer is yes, since if XRP is received (due to payment for a product or service), it is already declared capital. In that case, it's very likely that the declaration will require the value of the XRP to be expressed in euros. However, cryptocurrencies must always be declared.
- Another question is what happens if someone sells their crypto. For example, if someone owns a certain amount of XRP and sells it for euros, they must declare the euros they obtain. However, if someone sells their XRP in exchange for Ethereum (or any other cryptocurrency), they must declare the cryptocurrency they obtain. It is not considered that there is a “crypto exchange”, but rather a transaction where the capital received is cryptocurrencies that imply taxes.
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It should be noted that XRP is not as volatile a currency as Bitcoin is, but yes has some ups and downs. However, XRP must be declared at its current value on the tax return date. Two things must also be stated: 1) The amount and type of crypto used in the transactions must be indicated. and 2) make the declaration in eurosThe topic of cryptocurrencies is slowly becoming embedded in all scenarios, including the tax issue. Cryptocurrencies are the new version of capital in the 21st century, and they are now also declared in taxes.
