The Spanish government has introduced an obligation to declare crypto assets held in non-local crypto exchanges. Spanish citizens will be required to declare these assets by March 31, 2024. This step was taken with the aim of taxing crypto assets.
The Spanish Tax Agency, Agencia Tributaria, announced the first step of this regulation in the official gazette Boletín Oficial del Estado on July 29, 2023. A tax declaration form called Form 721 has been published for crypto assets held abroad.
The application period for Form 721 will start on January 1, 2024 and end on March 31. Accordingly, individual and corporate taxpayers will be obliged to declare the amount of funds in their crypto accounts abroad as of December 31, 2023.
Individuals with crypto assets exceeding 50,000 euros are required to declare. Individual investors storing their assets in cold wallets also need to report their assets through the standard asset tax form 714.
The Spanish Tax Agency is increasing its efforts to collect taxes from crypto asset owners living in the country. In April 2023, it sent out 328,000 warning notices to those who did not pay their crypto taxes for the fiscal year 2022. This number represents a 40% annual increase from the 150,000 warnings sent in 2022. Only 15,000 notifications had been sent in the country in 2021.