Cryptolicense in Spain: What You Need to Know

Spain is an attractive landscape for virtual asset service providers (VASPs). It leads among European countries in the number of cryptocurrency ATMs with 231, ranking fourth globally. Currently, there is no specific regulation of cryptocurrencies in Spain. However, the government has established a number of rules for cryptocurrency companies regarding the designation of cryptoassets, taxation, advertising and compliance with AML policies.

There is no specific regulation of cryptocurrencies in Spain

Key Numbers about Cryptolicense in Spain

no

state fee for VASP application

25%

corporate income tax (CIT) rate

€1

minimal share capital

19%

withholding tax (WHT) rate for non-residents

up to 26%

capital gains tax (CGT) rate

no

VAT for cryptocurrency exchange services

Legal Opinion about Cryptolicense in Spain

Ganna Voievodina

Manimama, CEO

"I have to say that getting a cryptocurrency license in Spain offers a huge number of benefits, from regulatory compliance and increased credibility to access to European markets and funding opportunities. With a Spanish license in hand, companies can inspire confidence in consumers, investors and partners, fostering long-term relationships and opening up opportunities for growth and collaboration. In case you are interested in obtaining a cryptolicense in Spain, don't hesitate to contact the Manimama team".

Types of Activities with a License

Exchange crypto to crypto: VASPs are authorized to facilitate the exchange of various virtual assets, including utility tokens and coins, ensuring diversified trading options.

Custodial wallet services: VASPs, through custodial wallets, offer a secure means of storing cryptocurrencies on behalf of users, with operators having the ability to open wallets while maintaining control over private keys.

Crypto transfers: VASPs are authorized to facilitate the secure transfer of cryptocurrencies from clients' wallets to designated third-party wallets, presenting an alternative to traditional fiat wire transfers.

Account statements issuing: VASPs have the right to reflect the balance and issue the account and transaction statements.

Exchange crypto to fiat and fiat to crypto: VASPs enable the conversion between cryptocurrency and fiat currencies, offering customers the flexibility to transact in multiple currencies.

Crypto processing and crypto acquiring: VASPs hold the capability to conduct the service allowing merchants to accept crypto as a payment with a consequent transfer of crypto to the merchant or conversion it to fiat.

On-ramp and off-ramp services: VASPs have the wide opportunities for the business development including providing B2B services as on-ramp, off-ramp, white label products which Manimama is ready to help to launch including payment service providers connection.

Token sales: The last but not the least! VASPs are authorized to conduct ICO offering the utility and limited-use e-money token.

Choose the Package of Services

Advanced

Exhaustive set up of company infrastructure for the start of operational activity

€17,000

  • Company formation in Spain
  • NIF (Tax Identification Number)
  • Registration of the beneficial owner
  • Registered address for 1 year
  • Registering share capital
  • VASP authorization
  • Apostiled corporate documents
  • Individual AML/KYC policies
Order now

Basic

VASP authorization under the minimum regulatory requirements

€15,000

  • Company formation in Spain
  • NIF (Tax Identification Number)
  • Registration of the beneficial owner
  • Registered address for 1 year
  • Registering share capital
  • VASP authorization
  • Standart AML/KYC policies
Order now

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Step by Step Description

Step 1. Gathering documents from the client to start the process

  • Preliminary project analysis
  • KYC collection and business description
  • Corporate name
  • Full personal details of the shareholders and the directors
  • Corporate purpose
  • Power of Attorney (powers to appear before a Spanish Public Notary to grant the incorporation public deed; powers to appear before any Spanish authority to perform and sign whatever acts, contracts or documents which may be necessary for or connected with the incorporation)
  • Bank wire (the amount of the initial share capital to be allocated to the company must be wired to an account opened in the name of the company at a bank in Spain)
  • The share capital (LLC, S.L. - €3,000)
Duration: 10 days

Step 2. Registration of a limited liability company (Sociedad Limitada or S.L.) in Spain (upon documents receipt on hands)

  • Opening a preliminary banking account for contribution of the shared capital and supporting of the process of deposit
  • Preparation of corporate address
  • Obtaining Spanish Tax Identification Number, NIF / Spanish Foreign Tax Identification Number, NIE for non-resident individuals who will be shareholders and/or appointed directors
  • Carrying out the notarial deed of company registration
  • Registration in Mercantile Registry
Duration: up to 6 months (Bank of Spain should answer in a maximum term of 3 months from the request, however, in practice, the complete processing of the license takes approximately 6 months)

Step 3. Pre-application work

  • Registration in the Spanish Social Security, Seguridad Social, if the company will act as an employing entity and hire employees in Spain
  • Development of AML/KYC policies tailored to the client company's cryptocurrency operations
  • Hiring and training a local director for the company and adapting their skills to the company's operations
  • Submitting the application and authorization as a VASP with the Bank of Spain
Duration: 4-6 months

Step 4. Opening C2B account for crypto activities (Additional)

  • Conducting preliminary assessment and match for suitable financial Institution for further account opening
  • Preliminary negotiations with the payment institution and support of the client throughout the account opening process
Duration: 4-8 weeks

Understanding the Spanish Requirements

It is necessary to register in a special crypto register of the Bank of Spain in order to do business with cryptocurrencies

Cryptocurrency business in Spain is regulated as part of the implementation of measures to prevent and detect acts of money laundering derived from or in connection with criminal activities. To incorporate a cryptocompany the following documents are required:

  • Form for registration in the register of Currency Exchange Service Providers
  • Form for registration as a Custodian Service Provider
  • Suitability assessment form for the applicant legal entity and, in addition, a suitability assessment form for each of the natural persons effectively managing the entity, signed by each of them
  • Criminal record certificate with an issue date no earlier than 3 months prior to the date of submission (the certificate is required for the applicant legal entity and for each of the natural persons effectively managing the entity)
  • Copy of the national identity card/NIE/NIF/foreign identification document of the legal person applying for registration, and in addition, of all natural persons effectively managing the entity, where such provider is a legal person
  • Manual on the prevention of money laundering and terrorist financing
  • Risk analysis document
  • Detailed Business Model description
  • IT Systems and Internal control mechanisms to comply with the legal or regulatory provisions aimed at preventing money laundering and the financing of terrorism

Requirements for VASP Authorization

Crypto-business authorization in Spain involves a minimum share capital (€1), adherence to AML/KYC regulations and physical office presence in Spain

To obtain a VASP authorization in Spain, the following requirements must be met:

  • enroll in the SCB (Spanish Central Bank Registry)
  • register a Sociedad Limitada (SL) - a legal entity equivalent to a Limited Liability Company (LLC) in Spain
  • acquire or lease a physical office space in Spain
  • ensure all beneficiaries possess an unblemished reputation
  • formulate a pragmatic business plan encompassing a strategy, platform list, and client protection measures
  • establish a bank account and secure financial approval from the Central Bank of Spain
  • hire personnel with relevant experience, including an AML Officer
  • adhere strictly to AML regulations

Taxes in Spain

Cryptocurrency exchange services are not subject to VAT, but some types of taxes do apply

CIT (Corporate Income Tax)

  • Rate: the standard CIT rate in Spain is 25%. There are some reduced rates for specific types of companies (e.g., newly formed entities)
  • Base: resident companies are taxed on their worldwide income. Non-residents are taxed only on Spanish-sourced income
  • Filing Dates: companies generally file their CIT returns within 25 days after the six months following the end of their tax year

WHT (Withholding Tax)

WHT is a tax withheld at the source of income on payments to non-residents. Rates vary depending on the type of income:
  • Dividends:
    • Generally 19%
    • May be reduced or eliminated under tax treaties
    • Exemptions may apply for holding companies within the EU
  • Interest:
    • Generally 19%
    • Some types of interest (e.g., from bank loans, public debt) may be reduced or exempt
  • Royalties:
    • Generally 24%
    • May be reduced under tax treaties

CGT (Capital Gains Tax)

  • Rates: capital gains are generally treated as ordinary income and taxed at the standard CIT rate of 25%. For individuals, there is a progressive tax rate applied within that structure
  • Base: capital gains are realized on the sale or disposal of assets
  • Filing Dates: the CGT is generally included in the regular CIT or individual income tax return

Client Feedbacks

"Manimama OU goes above and beyond with their proactive legal support. Their timely advice and responsiveness keep our business protected".

"Manimama OU excels at explaining complex legal concepts in a way we understand. Their clear communication makes decision-making easier".

"Partnering with Manimama OU provides us with peace of mind. We know our legal affairs are in safe hands, allowing us to focus on our core business".

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