All taxpayers who hold crypto-assets abroad, according to Spanish tax regulations, are required to declare their foreign holdings if their total value exceeds €50,000 during the year.
According to the Spanish Agencia Tributaria, non-custodial wallets do not need to be considered as foreign. Non-custodial wallets are those in which the user directly holds the private keys, ensuring full control and complete autonomy over the funds.
In contrast, custodial wallets are those in which the user does not have access to the private keys. In these cases, the management of the keys and funds is entrusted to an external platform or service, such as a centralized exchange.
Determining whether a custodial wallet should be considered Spanish or foreign can be more complex. The most common interpretation of the regulations is that custodial platforms are considered foreign if:
They do not have a legal entity in Spain
They are not registered with the Banco de España
To check if an exchange is registered with the Banco de España, you can consult the official list available at this link:
Important note: Some platforms may be registered with the Banco de España but have their legal entity located abroad. In these cases, they must still be declared as foreign.
The Form 721 must be submitted between January 1st and March 31st of the following year.
Penalties are imposed for late or incorrect submissions, which are €200 and €150, respectively.