Thomas Daniels
Spain has recently implemented new cryptocurrency tax regulations, mandating that its residents disclose their digital currency holdings on international platforms. The Spanish Tax Administration Agency, known as Agencia Tributaria, has introduced Form 721 specifically for reporting virtual assets held abroad.
According to these rules, both individual and business taxpayers in Spain are required to declare the value of their cryptocurrency assets held on foreign platforms as of December 31st. The timeframe for this declaration starts on January 1, 2024, and ends at the close of March 2024. This obligation is applicable to those whose holdings surpass €50,000. For cryptocurrencies held in personal wallets, the pre-existing wealth tax form, Form 714, should be used.
This initiative is a part of Agencia Tributaria’s larger effort to more effectively monitor and tax digital currency assets. In April 2023, the agency sent out 328,000 notifications to residents who hadn’t reported their cryptocurrency assets, a significant increase from 150,000 warnings in the previous year. This rise in warnings highlights the agency’s intensified efforts to enforce cryptocurrency tax laws.
