Spanish residents who own crypto assets on non-Spanish platforms must declare them before March 31, 2024 according to the new laws that govern the taxation of virtual assets.
The Spanish Tax Agency (AEAT) has published Model 721, a declaration model for the Tax on virtual assets abroad, announced for the first time in the Official State Gazette on July 29, 2023.
The deadline for submitting the Form 721 declaration will begin on January 1, 2024 and will end on the last day of March. Individual and corporate taxpayers must declare the amount of funds stored in their offshore crypto accounts as of December 31.
However, only people with balances exceeding the equivalent of 50,000 euros (around $55,000) in crypto assets are required to declare their holdings abroad. Those who store their assets in self-custodied wallets must report their holdings through the standard estate tax form, Form 714.
The AEAT has recently been increasing its efforts to collect from local holders of crypto assets. In April 2023, it sent 328,000 warning notices to those who did not pay their cryptocurrency taxes for the 2022 tax year. The number of notices increased by 40% annually, with 150,000 warnings in 2022. In 2021, there were only 15,000 notices.
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The country is trying to act proactively with a variety of regulations to regulate cryptocurrencies. In October, Spain’s Ministry of Economy and Digital Transformation reported that the European Union’s first comprehensive crypto framework, the Cryptoasset Markets Law (MiCA), will come into force nationwide in December 2025, six months before the official deadline.
In November, Spain’s main financial regulator, the National Securities Market Commission (CNMV), opened its first case against a technology provider for violating cryptocurrency promotion rules in the country.
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