Cryptocurrencies and declaration of assets abroad: Form 720
Form 720 is an informative declaration that obliges tax residents in Spain to report on assets and rights located abroad whose value exceeds €50,000. Does it include cryptocurrencies?
What is Model 720?
It is an annual declaration (deadline: January-March of the following year) that informs the Treasury about:
- Accounts in foreign financial entities.
- Securities, rights, insurance and income deposited abroad.
- Properties abroad.
Does not generate tax payment: it is merely informative, but non-compliance has very high penalties.
Do cryptocurrencies enter Model 720?
This has been a question with a changing answer:
Before 2023: The AEAT had ambiguous criteria. Some advisors defended that cryptocurrencies did not fit into any 720 block because they are assets without a physical location and there is no "foreign financial entity" that guards them.
Since 2023 (Law 13/2023): Model 721 is introduced, specifically for cryptocurrencies held abroad. The threshold is also €50,000.
Model 721 for cryptocurrencies
- What is declared? Cryptocurrencies held by service providers established abroad (non-Spanish exchanges: Binance, Coinbase, Kraken, etc.).
- Threshold: If the joint value exceeds €50,000 as of December 31.
- Deadline: From January 1 to March 31 of the following year.
- And self-custody wallets? No, because there is no "foreign service provider". Your cold wallets do not fit into Model 721.
Spanish exchanges
If you use exchanges with tax domicile in Spain (if any), no Form 721 obligation is generated for that party. But most major exchanges (Binance, Coinbase, Kraken, Bybit, OKX) are based outside of Spain.
Sanctions for non-compliance
The penalties for the historic Model 720 have been the highest in Europe:
- Fine of €5,000 for each omitted or incorrect information (minimum €10,000).
- Prohibition of deducting undeclared assets.
The CJEU declared some 720 sanctions disproportionate in 2022, and the law was modified. Those of 721 are more moderate but are still significant.
##Tax residency and cryptocurrencies
If you are a tax resident in Spain, you have the obligation to declare your worldwide income. This includes:
- Cryptocurrency earnings obtained on any exchange, regardless of country.
- Staking returns on foreign protocols.
You cannot avoid paying taxes in Spain for having cryptocurrencies on a foreign exchange.
Frequently asked questions
What if I have less than €50,000? There is no obligation to present Form 721. But you must declare the profits in the Personal Income Tax.
Do they compute latent losses? The threshold is calculated on the value as of December 31, not on the acquisition cost.
What happens if the exchange goes bankrupt and I lose the cryptos? You can declare a capital loss in personal income tax, but you need to document the insolvency of the exchange.
Updated: April 2026 | Fiscal year: 2025