Spanish Citizens Obliged to Declare Foreign Crypto Holdings over 50,000 Euro by End of March 2024

Spanish Citizens Obliged to Declare Foreign Crypto Holdings over 50,000 Euro by End of March 2024

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The Spanish Tax Administration Agency has published a tax declaration form that requires Spanish citizens holding crypto assets on foreign platforms to declare them by March 31, 2024. Only those holding balance sheets over the equivalent of 50,000 euros ($55,000) are obliged to declare their foreign holdings. 

The Spanish Tax Administration Agency, also known as Agencia Tributaria, published a tax declaration form for foreign digital assets – Form 721. Form 721 was first announced in Spain’s official state gazette, Boletín Oficial del Estado, in July 2023. 

Spanish Citizens Must Declare Crypto Asset Holdings on Non-Spanish Platforms

Individuals and corporate taxpayers must declare the amount of funds held on foreign crypto accounts as of December 31, 2023. 

According to Form 721, however, any Spanish citizen holding crypto assets on foreign platforms must declare such assets by March 31, 2024. Under Spain’s virtual asset taxation system, only individuals with balance sheets exceeding the equivalent of  50,000 euros (around $55,000) in crypto assets are obliged to declare their foreign holdings. The taxation framework also states those who store their assets in self-custody wallets must report their holdings through the standard wealth tax form 714. 

The Agencia Tributaria’s website indicated the submission period for a Form 721 declaration will run from January 1, 2024, to March 31, 2024. The tax authority added that in cases where, for technical reasons, a filing is not possible under the submission period, a filing can be done within four (4) calendar days following the end of the submission period date. 

Spain’s Tax Authority Cracks Down on Crypto Holdings

The Spanish tax authority is making an effort to charge local crypto holders. The agency dispatched 328,000 warning notices in April 2023 to those who failed to pay taxes on crypto for the 2022 fiscal year.

Spanish Central Bank Prepares Customers for Potential CBDC

Spain’s central bank, Banco de España, is preparing its customers for the potential benefits of the European Union’s central bank digital currency (CBDC) – the digital euro.

In a recent blog post, Spain’s central bank highlighted all the possible benefits of introducing a CBDC. While the digital euro is still in testing phases, countries across the union are warming citizens up to the concept of a CBDC. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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