Spain will begin to report Foreign crypto assets People own
The Spanish government is actively pursuing cryptocurrency taxes.
By March 31, 2024, Spanish citizens are required to inform the authorities if they own cryptocurrency on platforms outside of Spain, such as an exchange. The new regulations for taxing virtual assets include this provision.
A new form, 721, has been issued by the Spanish Tax Agency (Agencia Tributaria) to assist people in declaring their overseas virtual assets. On July 29, 2023, this notice was published in Spain’s official gazette. Form 721 may be submitted by Spanish citizens beginning January 1, 2024, and it must be submitted no later than March 31, 2024. Citizens are required to disclose the worth of your cryptocurrency as of December 31, 2023, and this applies to both individuals and companies that are subject to taxation.
The catch is that this is only for residents who have more than 50,000 euros, or about $55,000, worth of cryptocurrency. There is a change in reporting requirements for cryptocurrency held in a personal wallet (Self Custody) and the wealth tax form 714.
Crypto taxes are coming under increased scrutiny from Spain’s tax body, the Agencia Tributaria. From 150,000 in 2022 to just 15,000 in 2021, there was a significant rise to 328,000 warning notifications handed out in April 2023 to those who failed to pay crypto taxes for 2022.
When it comes to crypto laws, Spain is likewise in the forefront. The Spanish Ministry of Economy said in October that the country would begin implementing EU crypto regulations in December 2025—six months ahead of schedule. Additionally, the primary financial authority in Spain began prosecuting a business for violating regulations on cryptocurrency advertising in November.