Spain Introduces a New Cryptocurrency Reporting Form for Residents

The Spanish Tax Authority has announced Form 721, specifically designed for declaring virtual assets held on foreign exchanges or wallets. The reporting period for this form will run from January 1st to March 31st, 2024, requiring declarations of crypto funds held as of December 31st, 2023.

The reporting requirement applies to individual taxpayers and corporations registered in Spain holding cryptocurrencies valued at over 50,000 euros.

This move by the Spanish government signifies one of the latest steps aimed at tightening the taxation of crypto-assets. Additionally, the Ministry of Economy has declared that the EU’s cryptocurrency legislation, MiCA, will come into effect in the country in December 2025, six months earlier than initially planned.

According to Cointelegraph, in April 2023, the Spanish tax authority issued over 300,000 warnings to cryptocurrency holders for improper reporting—an increase of 40% compared to the previous year.