How are taxes paid on Bitcoin operations? Many of us have wondered how operations with Bitcoins should be fiscally handled. Legally speaking, these operations are considered as capital gains or losses and must be declared through IRPF or included in the IS given the trader is a company. The income accumulated over the years will have to be declared in the Wealth Tax and when the Bitcoins are established outside of Spain, you will have to fill and hand in the 720 Form (Declaration of Goods abroad). Census obligations to operate with Bitcoin. In order to trade with Bitcoins, it is required to register in the Economic Activities Tax (IAE), as well as to include the IVA on the final price and to declare the benefits on the Tax, IRPF or in the Tax for Companies IS. Control of operations with Bitcoins and guarantee of the right to data protection. The Tax Agency during the next year will improve their resources to combat tax fraud when operating with Bitcoins. Their focus is to track the websites known as “Deep web” which change their nomenclatures of extensions every now and then, making it extremely hard to track them for they don’t leave any records. Electronic currency is starting to become a reality, many people support the idea of it being the money substitute in a not so far future. This raises legal problems in terms of data protection or the right to privacy, since any transaction would be recorded. Those who have taken interest in the matter support that using this electronic device would be beneficial when combating fraud, also they hold that its interference with the right to privacy and data protection would be minimal. Our firm agrees with this authors in the sense that this new currency does not necessarily breach the current regulation. Further regulations on the Bitcoin’s use may be required to provide the due guarantees granted by the law, mainly to equate its regulation to the one regarding the banking system, but broadly speaking, there is no breaching the law when it comes to the Bitcoin.