Those who, as of December 31st of the previous year, were owners, authorized holders, or beneficiaries of cryptocurrencies abroad totaling more than €50,000 must file Form 721. Filing the form in subsequent years will only be required if the cryptocurrency balance increases by more than €20,000.
We inform you that form 721 "Informative declaration on virtual currencies located abroad" was implemented as a result of Law 11/2021, on anti-fraud measures, and was approved and developed by Order HFP/886/2023, of July 26, which establishes the conditions and procedure for its presentation (modified by Order HAC/1504/2024, of December 26).
According to the approved regulations, it is mandatory to declare cryptocurrencies held on exchanges or platforms located outside of Spain in order to prevent fraud and tax evasion. Therefore, all citizens who held cryptocurrencies abroad in 2025 should check whether they were required to file this declaration.
Who is required to submit form 721?
Natural and legal persons resident in Spanish territory, permanent establishments in said territory of non-resident persons or entities and the entities referred to in article 35.4 of Law 58/2003, of December 17, General Tax Law (dormant estates, joint ownership communities…), who are holders of virtual currencies abroad, or with respect to which they have the status of beneficiaries, authorized persons or in some other way hold power of disposal, or of which they are beneficial owners, held in custody by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies, as of December 31 of each year.
This obligation also extends to those who have been holders, authorized holders, or beneficiaries of the aforementioned virtual currencies, or who have had power of disposal over them, or who were beneficial owners at any time during the year to which the declaration refers and who lost that status by December 31 of that year. In these cases, the information to be provided will correspond to the date on which such termination occurred.
Which virtual currencies will not be subject to this reporting obligation?
This reporting obligation will not apply to the following virtual currencies:
- Those held by the entities referred to in Article 9.1 of Law 27/2014, of November 27, on Corporate Income Tax.
- Those held by legal entities and other entities resident in Spanish territory, as well as permanent establishments in Spain of non-residents, registered in their accounting individually and identified by their name, value and custodian entity and country or territory in which they are located.
- Those held by natural persons residing in Spanish territory who carry out an economic activity and keep their accounts in accordance with the provisions of the Commercial Code, registered in said accounting documentation individually and identified by their name, value and custodian entity and country or territory in which they are located.
- There will be no obligation to report on any virtual currency when the balances as of December 31 of each type of virtual currency abroad valued in euros do not exceed, in aggregate, 50,000 euros. If this aggregate limit is exceeded, all virtual currencies must be reported.
What is meant by "virtual currency"?
Virtual currency shall be understood as that digital representation of value not issued or guaranteed by a central bank or public authority, not necessarily associated with a legally established currency and which does not have the legal status of currency or money, but which is accepted as a medium of exchange and can be transferred, stored or traded electronically.
When is a virtual currency located abroad considered to be a virtual currency?
Virtual currencies will be considered to be located abroad when the person or entity or permanent establishment that holds them in custody, providing services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer said currencies, is not required to submit the information obligation referred to in section 6 of the thirteenth additional provision of Law 35/2006, of November 28, on Personal Income Tax.
The following interactive query from the Bank of Spain allows you to find the location of providers of virtual currency exchange services through fiduciary and/or electronic wallet custody services registered with the Bank of Spain:
Entity Registry (bde.es)
Deadline for submitting form 721
Form 721 must be submitted between January 1 and March 31 of the year following the year to which the information to be provided refers.
- Attention. In those cases where, for technical reasons, it is not possible to submit the declaration via the Internet within the regulatory period, said submission may be made during the four calendar days following the end of said period.
What information must be provided on form 721?
Those required to submit form 721 will be required to provide the information contained in the annex of Order HFP/886/2023, of July 26, which approves said form (modified by Order HAC/1504/2024, of December 26).
Thus, the information to be provided to the Tax Administration will include:
- The name and surname or the company name or full name and, where applicable, tax identification number of the country of tax residence of the person or entity that provides services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies, as well as their address or website address.
- The complete identification of each type of virtual currency.
- The balances of each type of virtual currency as of December 31, expressed in virtual currency units and their valuation in euros.
If the obligation to file a tax return had ended before December 31, the information to be provided will be that corresponding to the date on which said end occurred.
For more details, please refer to the content of the information return on virtual currencies located abroad, form 721.
Frequently asked questions about form 721
What are the penalties for not submitting form 721?
- Failure to submit form 721 will result in a fine of €300, if required by the Administration, and €150 for submitting it incorrectly.
- A penalty of €20 can also be imposed for undeclared/unrequired registration or €10 for doing it incorrectly.
You can contact this professional office for any questions or clarifications you may have.
Warm regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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