The deadline for submitting Form 721, the Informative Declaration on Virtual Currencies (cryptocurrencies) Located Abroad, for the 2025 tax year is March 31, 2026
What are virtual currencies?
“Virtual currency” means any digital representation of value that is not issued or guaranteed by a central bank or public authority, is not necessarily associated with a legally established currency, and does not have the legal status of currency or money, but is accepted as a medium of exchange and can be transferred, stored, or traded electronically.
Who is required to file Form 721?
The following holders of virtual currencies located abroad who do not have their value, the custodian entity, and the country or territory in which the virtual currencies are located recorded individually in their official accounting records:
• Natural persons and legal entities resident in Spanish territory.
• Permanent establishments in Spanish territory of non-resident individuals or entities.
• Individuals involved in an undivided inheritance, joint property estates, and other entities which, although lacking legal personality, constitute an economic unit or a separate pool of assets subject to taxation in Spanish territory.
This obligation also applies to individuals who, without being holders of virtual currencies, are beneficiaries, authorized persons, or otherwise have powers of disposal over them, or who are their beneficial owners.
How can I know if I am required to file Form 721?
There is an obligation to file Form 721 when the following circumstances apply:
You or your entity are among the obligated parties listed in the previous section .
You, as an individual taxpayer, are not resident in Spain under the Special Regime for Displaced Workers (also known as the Beckham Law).
The balance of each type of virtual currency as of December 31, 2025, valued in euros as of December 31, 2025, exceeds €50,000.
If Form 721 was filed for the 2024 tax year (filed in March 2025), a new filing is required when the combined balance of the virtual currencies as of December 31, 2025 has increased by more than €20,000.
A filing is also required when, even if the declaration for 2024 was not required and the combined balance has not increased by more than €20,000 as of December 31, 2025, you ceased at any time during the 2025 tax year to be the holder, beneficiary, authorized person, person with powers of disposal, or beneficial owner. Circumstances that may lead to the loss of such status include the disposal, liquidation, transfer, assignment, exchange, swap, or any other form of transfer of virtual currencies.
What happens if I am required to file Form 721 for the 2025 tax year and fail to do so? What if I was required to file it in 2024 and did not?
For late filing without a prior request from the Tax Authorities, the minimum penalty is €150, or €10 for each piece of information or set of data relating to the same person or entity that must be reported, with a maximum penalty of €10,000.
If the late filing occurs after receiving a request from the Tax Authorities, the minimum penalty is €300, or €20 for each piece of information or set of data relating to the same person or entity that must be reported, with a maximum penalty of €20,000.
It is also important to note that filing Form 721, when required, establishes the date from which the taxpayer has owned the declared virtual currencies. This is particularly relevant when those virtual currencies are later liquidated or transferred, and their value is realized in another type of asset incorporated into the taxpayer’s wealth (such as funds in a bank account, deposits, securities, real estate, personal property, vehicles, jewellery, etc.).
If Form 721 was required but not filed, the Tax Authorities may determine that the assets obtained through the liquidation or transfer of those virtual currencies correspond to undeclared income generated during the last non-statute-barred tax year.
In such cases, the Tax Authorities may consider that the value of the asset incorporated into the taxpayer’s wealth corresponds to income generated and not declared five years prior to its incorporation. Consequently, they may assess a tax reassessment for the corresponding tax (whether Personal Income Tax or Corporate Income Tax), including:
the tax that should have been paid five years earlier,
late-payment interest accrued during those five years, and
the corresponding penalty for failure to pay the tax debt within the required period, calculated on 50% of the unpaid amount.
