Form 720 and cryptocurrencies abroad: is there an obligation?
Form 720 —the declaration of assets and rights held abroad— was for years one of the most feared obligations for tax residents in Spain with assets outside the country. Does it apply to cryptocurrencies?
The traditional Form 720
Form 720 requires the declaration of the following assets abroad when they exceed €50,000:
- Bank accounts.
- Securities, insurance, and income.
- Real estate.
Do cryptocurrencies fall under Form 720?
Until 2024, there was no specific obligation to declare cryptocurrencies on Form 720. The DGT issued consultations indicating that cryptocurrencies did not fit into any of the three mandatory categories.
However, in 2025, the government approved the extension of Form 720 to virtual assets, creating Form 721, specifically for cryptocurrencies.
Form 721: declaration of cryptocurrencies abroad
Form 721 requires the declaration of cryptocurrencies managed by providers located outside of Spain when the total value exceeds €50,000 as of December 31st.
What must be declared:
- Name and code of each cryptocurrency.
- Number of units.
- Value in euros as of December 31st.
- Identification of the custodial provider (foreign exchange).
Deadline: January of each year, for the previous fiscal year.
Important: Cryptocurrencies in self-custody wallets (non-custodial) are subject to debate. The most conservative interpretation is to include them.
The CJEU ruling and the classic Form 720
In 2022, the Court of Justice of the EU (CJEU) declared that the penalty regime of Form 720 was disproportionate and contrary to European law. As a result, the disproportionate penalties of Form 720 were eliminated. This does not directly affect Form 721 for crypto, which has its own regime.
What happens if I don't file Form 721?
- Minimum penalty of €5,000 per set of omitted or incorrect data.
- In the case of voluntary regularization before a formal request: reduced penalty.
Affected exchanges
All exchanges located outside of Spain are affected:
- Binance (Malta/France)
- Kraken (USA)
- Coinbase (USA)
- OKX (Seychelles)
- Bybit (Dubai)
- And any other exchange not domiciled in Spain.
Exchanges based in Spain (Bit2Me, for example) do not fall under Form 721, although they do fall under Forms 172/173.
Conclusion
Form 721 is the Spanish response to the growing internationalization of crypto assets. If you have more than €50,000 in foreign exchanges at the end of the year, you are required to file it. Non-compliance carries high penalties, so it is advisable not to ignore it.