I have been scammed with cryptocurrencies is, unfortunately, a phrase that more and more people are using after losing money on fraudulent investment platforms. It is a painful and frustrating situation, especially when the time comes to file the income tax return.
The good news is that Spanish tax law does take certain cases into account where that loss may have tax consequences. The bad news is that it is not always straightforward: it will depend on whether the scammer is known, whether a report has been filed, and when the loss occurred.
What does the law say about cryptocurrency scams?
The Personal Income Tax Law and the most recent administrative doctrine (with rulings up to 2026) recognise that money lost in an investment scam may be declared as a loss in the income tax return. However, this is subject to important conditions that depend on one key factor: is the scammer known?
The key factor: do you know who scammed you?
Case 1: You do not know who scammed you.
This is the most common situation in cryptocurrency scams. An online investment platform promises high returns, appears to be legitimate, and then disappears with your money. You do not know who is behind it. The people responsible are anonymous.
In this case, the law allows you to declare the loss in the year in which the scam occurred. There is no need to wait for any court proceedings. What you do need is:
- To have filed a report with the National Police or the Guardia Civil.
- To keep all supporting evidence: bank transfers, screenshots of the platform, emails, records of your digital wallet.
- To be able to prove the exact amount lost.
Important: filing a report is not optional. It is essential. Without it, the Spanish Tax Agency may reject the loss due to lack of proof.
Case 2: You do know who is responsible.
If the scammer is identified (with a name, company, address) the situation is more complicated. The law considers that, in this case, you still have a legal right to claim that money back. And while you have that right, you cannot declare the loss.
In order to declare the loss, you will need to follow a longer path that requires specific legal action. It is not the quickest route, but it is the one established by law.
Is a criminal complaint not enough?
This is one of the most common mistakes. Many people believe that simply having filed a criminal complaint allows them to declare the loss the following year. That is not the case.
A criminal complaint serves for the State to investigate and sanction the offender. But tax law requires something more specific in order to declare the loss, and a criminal complaint alone does not meet that requirement.
In short: always file a report, because it is necessary. But it is not the only step.
Before preparing the tax return, it is advisable to organise all available documentation: the police report, bank transfers, screenshots, emails and digital wallet records. Documentary evidence will be key to supporting the loss.
¡Beware of recovery scams!
There is a particularly cruel type of fraud that targets victims of investment scams: so-called recovery scams.
They work as follows: someone contacts you, pretending to be a lawyer, an asset recovery company or even a court and tells you that they have located your money and that, in order to recover it, you only need to pay certain fees in advance. The document they send you looks official. The stamp looks real. Everything appears legitimate. It is not.
Before making any further payment or providing new personal documentation, it is important to carefully verify who is behind the communication. Victims of an initial scam are often especially vulnerable to this type of subsequent fraud.
Conclusion: each case must be analysed before declaring the loss.
Every situation is different and the details matter greatly. An anonymous platform that disappears with the money is not the same as an identified person or company against whom there may still be a legal right to claim.
If you have lost money in a cryptocurrency investment and do not know how this affects your income tax return, contact us.
At Temple Cambria, we will analyse your specific case and guide you step by step.
You may also be interested in:
TAXATION OF CRYPTOCURRENCIES IN SPAIN (UPDATED)
Form 720 and investment portfolios: the peculiarity that causes the most errors.
ÁLVARO MORALES SOUSA
PARTNER – LAWYER
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