Nikolas Sargeant
People with crypto assets must declare them if the value of their holdings is over 50,000 euros. Spanish residents who hold crypto assets on platforms outside of Spain need to declare them by March 31, 2024. These declarations are required by new laws that govern the taxation of virtual assets.
The Spanish Tax Administration Agency, Agencia Tributaria, has released form 721. This form is for declaring virtual assets held abroad. It was announced in the Kingdom of Spain's official state gazette, the Boletín Oficial del Estado, on July 29, 2023.
The submission period for the declaration of form 721 will start on Jan. 1, 2024, and end on March 31. Individual and corporate taxpayers must declare the amount of funds in their crypto accounts abroad by Dec. 31, 2023.
Individuals with crypto assets worth more than 50,000 euros (about $55,000) must declare their foreign holdings. If you store your assets in a self-custodied wallet, you must report them using the standard wealth tax form 714.
The Agencia Tributaria is making more of an effort to charge local crypto asset holders. In April 2023, they sent 328,000 warning notices to those who still need to pay their crypto taxes for the 2022 fiscal year. The number of notices has increased by 40% each year, with 150,000 warnings in 2022. In 2021, there were only 15,000 notifications.
Spain is taking proactive measures to regulate cryptocurrencies. In October, the Spanish Ministry of Economy and Digital Transformation announced that the Markets in Crypto-Assets Regulation, the first comprehensive crypto framework in the European Union, will be implemented nationally in December 2025. This is six months ahead of the official deadline.
In November, the National Securities Market Commission of Spain took action against a technology provider for breaking crypto promotion regulations. This is the first case of its kind.
