Payment of wages in cryptocurrencies
Is it possible to pay wages in cryptocurrencies in Spain?
Cryptocurrencies are booming and, unsurprisingly, we have already discussed them in this blog in articles such as this one on cryptocurrencies and Transfer Tax, and this one on their taxation under Corporate Income Tax.
Today we address a question increasingly present in business debates: can companies pay their employees’ salaries in cryptocurrencies such as Bitcoin or Ethereum?
The answer is clear: in full, no — but formulas can be explored to partially remunerate with cryptoassets. In Spain, the Workers’ Statute requires that wages be paid in legal tender. Since cryptocurrencies do not hold that status but are considered intangible assets of a patrimonial nature, full payment of salary by means of cryptocurrency transfer is not permitted.
Is it possible to pay part of the salary in cryptocurrencies?
There are mechanisms by which cryptocurrencies may indeed form part of salary, within the limits established for what is known as payment in kind, provided that:
- It does not exceed 30% of the total remuneration.
It does not reduce the full cash amount below the Minimum Interprofessional Wage (SMI).
In this context, the delivery of cryptocurrencies may fit within remuneration in kind, on the same level as other common benefits such as stock options, medical insurance, the use of housing, or a company car.
That said, compliance is required with the duty to inform and consult workers’ legal representatives, where such representation exists within the company.
Legal and practical implications of salary in cryptocurrencies
The implementation of a remuneration system that includes cryptocurrencies raises a series of practical and legal implications which must be thoroughly analysed:
- Valuation of cryptoassets (market value).
- Time of accrual and delivery.
- Taxation and social security contributions.
Conclusions on salary in cryptocurrencies
Cryptocurrencies represent an innovative tool for attracting and retaining talent, adding a distinctive element to companies’ remuneration policies.
However, this is still an area lacking specific regulation and subject to judicial interpretation, which makes specialised legal advice essential before implementation.
Do you need advice? Access our area related to the payment of wages in cryptocurrencies: