Form 721 (Spain crypto abroad)

Spanish tax residents must file Modelo 721 with the tax agency (AEAT) if, on 31 December, the combined value of the virtual currencies they hold through providers located outside Spain exceeds 50,000 euros. The return lists balances per currency and provider, valued at market price on that date. It is filed between 1 January and 31 March of the following year, and the first filing covered balances at the end of 2023. After a first filing, a new one is only required if the value increases by more than 20,000 euros or the position is closed.

It is purely informative: no tax is paid with it. Its purpose is to let the AEAT know about crypto that escapes domestic reporting, complementing Modelos 172 and 173, which Spanish-based providers file about their customers.

Crypto kept in self-custody wallets, where the holder controls the keys, is generally understood to fall outside Modelo 721 because no foreign custodian is involved. The penalty regime follows the general tax law after the EU Court of Justice struck down the earlier, harsher rules for Modelo 720.