By 
Spanish residents holding crypto assets on non-Spanish platforms are required to declare them by March 31, 2024, under new taxation laws for virtual assets. The Spanish Tax Administration Agency, known as Agencia Tributaria, has introduced Form 721, a tax declaration form for virtual assets held abroad. The submission period for Form 721 runs from January 1, 2024, to the end of March 2024. Individual and corporate taxpayers must declare the amount of funds stored in their crypto accounts abroad as of December 31, 2023.
Only individuals with balance sheets exceeding the equivalent of 50,000 euros (around $55,000) in crypto assets are obligated to declare their foreign holdings. Those who store their assets in self-custodied wallets must report their holdings through the standard wealth tax form 714.
This move by the Spanish tax authorities reflects an increasing effort to regulate and tax crypto holdings. In April 2023, the agency sent 328,000 warning notices to individuals who hadn’t paid taxes on their crypto holdings for the 2022 fiscal year. This marked a 40% increase compared to the previous year. Spain is proactively working on various regulations for the crypto space, including the implementation of the Markets in Crypto-Assets Regulation, the first comprehensive European Union crypto framework, set to come into force nationally in December 2025.
In November, the National Securities Market Commission, Spain’s principal financial regulator, initiated its first case against a technology provider for violating rules related to the promotion of crypto.
Comments