Following the approval of the Anti-Tax Fraud Law in July 2021, an obligation was introduced to declare cryptocurrencies held abroad. Since then, however, the regulations have evolved considerably.
The key change: Form 721
Cryptocurrencies and virtual currencies held abroad are no longer declared in Form 720. They must now be reported in Form 721, a specific informative declaration created for this type of digital asset.
Who is required to file Form 721?
The obligation applies to individuals and legal entities resident in Spain, permanent establishments in Spain of non-resident entities, and entities under article 35.4 of the General Tax Law, who at 31 December are holders, beneficiaries, authorised users, have powers of disposal, or are beneficial owners of virtual currencies held abroad and custodied by third parties.
Threshold and deadline
Filing is required when the combined value of cryptocurrencies at 31 December exceeds 50,000 euros, or when ownership of any cryptocurrency was extinguished during the year. The filing period is the same as for Form 720: from 1 January to 31 March of the following year. For the 2025 tax year, the deadline is 31 March 2026.
Additional changes for 2026
From 2026 onwards, cryptocurrency exchanges and custodians are required to automatically report digital asset activity to the Spanish Tax Agency. This means a significantly more comprehensive cross-referencing of data by the tax authorities.
Form 720 remains in force for other assets
The 2022 legal reform eliminated the disproportionate penalties that were previously in place, but the obligation to declare remains fully in force for bank accounts, securities, and real estate held abroad exceeding 50,000 euros per block.
For any matter related to this or other tax issues, please do not hesitate to contact us.