In a move to enhance oversight on cryptocurrency holdings, Spain has implemented a new regulation requiring residents with crypto assets on foreign platforms to report their holdings by March 31, 2024.

The Spanish Tax Administration Agency, also known as Agencia Tributaria, unveiled Form 721, a dedicated tax declaration form for virtual assets held overseas. The legislation, initially announced in Spain’s official state gazette, the Boletín Oficial del Estado, on July 29, 2023, sets the reporting period from January 1, 2024, to the end of March. Individuals and businesses must disclose their funds stored in foreign crypto accounts as of December 31, 2023.

The reporting obligation is applicable only to individuals possessing crypto assets valued at over 50,000 euros, approximately $55,000. Those holding assets in self-custodied wallets are required to utilize the standard wealth tax Form 714 for reporting.

The Agencia Tributaria has been actively ensuring compliance among local crypto asset holders. In April 2023, it issued 328,000 warning notices to individuals who hadn’t paid taxes on their crypto holdings for the 2022 fiscal year, marking a 40% increase from the previous year’s 150,000 warnings. In 2021, only 15,000 notifications were sent.

Spain is taking proactive steps to establish comprehensive regulations for the cryptocurrency sector. In October, the Spanish Ministry of Economy and Digital Transformation announced the adoption of the Markets in Crypto-Assets Regulation, the European Union’s pioneering crypto framework, at the national level in December 2025—six months ahead of the official deadline.

Additionally, in November, Spain’s primary financial regulator, the National Securities Market Commission, initiated its first case against a technology provider for violating crypto promotion rules.

These regulatory developments underscore Spain’s commitment to ensuring responsible and transparent cryptocurrency use within its borders.