# Modelo 721: how to report crypto held abroad in Spain

URL: https://melso.ai/en/blog/form-721-spain-crypto
Published: 2026-10-18 · Updated: 2026-10-18

Modelo 721 in 2026: who must report crypto held by custodians outside Spain, the €50,000 threshold, the 1 January to 31 March window, the €20,000 re-filing rule, the real fines, self-custody, wealth tax and DAC8.

## What is Modelo 721? The short answer

Modelo 721 (Form 721) is the information return in which Spanish tax residents report crypto held for them by a platform abroad, if it is worth more than €50,000 in total on 31 December. You file it between 1 January and 31 March. No tax is paid with it, and your own wallet does not count.

> [!RESUMEN]
> - You file Form 721 if you are tax resident in Spain and your crypto with foreign custodians adds up to more than €50,000 on 31 December. You then report all of it, coin by coin.
> - Crypto in a wallet where you hold the keys, cold or hot, stays out of Form 721, but it goes on your Spanish wealth tax return and, if you sell or swap, on your income tax return.
> - Balances for 2026 are reported between 1 January and 31 March 2027.
> - After your first return, you only file again if the balance rises by more than €20,000 over your last Form 721, or if you stop holding coins you already reported.
> - Since 2022 the fine is the general one: €20 per item, with a minimum of €300 and a maximum of €20,000, halved if you file late without being asked.

Form 721 was created by Law 11/2021 on tax fraud, which added virtual currencies to the [eighteenth additional provision of the General Tax Law](https://www.boe.es/buscar/act.php?id=BOE-A-2003-23186#dadecimoctava) (Ley General Tributaria), the same provision behind [Modelo 720](/en/blog/form-720-spain). The detail is in [article 42 quater of the tax management and inspection regulation](https://www.boe.es/buscar/act.php?id=BOE-A-2007-15984#a4-3), and the form was approved by [Order HFP/886/2023](https://www.boe.es/buscar/act.php?id=BOE-A-2023-17429). The first return covered the 2023 tax year and was filed in 2024.

## Who has to file Modelo 721?

Under article 42 quater, it is filed by individuals and companies resident in Spain, permanent establishments of non-residents and entities without legal personality, such as undivided estates and co-ownerships. You do not have to be the holder: authorised persons, beneficiaries, anyone with power of disposal and the **beneficial owner** also report, for example for crypto held in the name of a company or trust set up outside Spain.

The obligation arises when the total value of that crypto on 31 December exceeds **€50,000**. If you are over the limit, you report all of it, not just the part above the threshold. Resident companies, and business owners who keep accounts under the Spanish Commercial Code, are exempt as long as they record each coin individually with its name, value, custodian and country.

Two cases that often raise questions, according to the [AEAT's FAQ on Form 721](https://sede.agenciatributaria.gob.es/Sede/todas-gestiones/impuestos-tasas/declaraciones-informativas/modelo-721-decla-sobre-monedas-extranjero/preguntas-frecuentes-sobre-modelo-721.html): residents of the Basque Country and Navarre also file, under the state or regional (foral) rules that apply to them; and heirs report from the moment they accept the inheritance. The FAQ does not cover people taxed under the inbound workers' regime (the [Beckham Law](/en/blog/beckham-law-spain)), so if that is you, confirm your position before you stop filing. And if you are not sure you are resident, start with the guide to [Spanish tax residency](/en/blog/spanish-tax-residency).

### When is your crypto "abroad"?

This is where many guides go wrong. The AEAT requires **two conditions together**: the coins must be held by a third party that safeguards private keys for its customers, and that third party must be neither resident in Spain nor a permanent establishment here. The rule puts it this way: crypto is abroad when its custodian does not have to file **Form 172**, the balance report that the [thirteenth additional provision of the income tax law](https://www.boe.es/buscar/act.php?id=BOE-A-2006-20764#dadecimotercera) imposes on resident custodians.

| Where your crypto is | On Form 721? | Why |
|---|---|---|
| Platform or custodian with no residence or permanent establishment in Spain | Yes | It does not file Form 172 |
| Platform or custodian resident in Spain, or with a permanent establishment here | No | The custodian reports it on Form 172 |
| Hardware wallet, or cold or hot wallet where you hold the keys | No | No third party holds it for you |
| Foreign platform with a Spanish-language website and advertising in Spain | Yes, if it is not resident and has no permanent establishment | What counts is who holds the keys, not the language or brand |

On self-custody, the AEAT is clear: whether the wallet is cold or hot, coins whose keys you control are not added to the balance and are not reported on Form 721. To check where a provider is registered, the AEAT itself points to the Banco de España register of exchange and custody providers.

![If you are tax resident in Spain and a custodian that does not file Form 172 holds your keys, you file Form 721 when the total balance on 31 December exceeds €50,000. Your own wallet and custodians resident in Spain are left out. Below the limit, you only report coins you had already declared and no longer hold.](https://storage.googleapis.com/albert-489117-melso-blog-media/diagrams/en/modelo-721/1-decision-4f7932bff3.png?w=1600&h=1784&m=1&mw=1080&mh=2988 "Do you have to file Modelo 721?")

## When is it filed, and when do you have to file again?

[Article 4 of Order HFP/886/2023](https://www.boe.es/buscar/act.php?id=BOE-A-2023-17429) sets the window: **from 1 January to 31 March** of the following year. Crypto you hold on 31 December 2026 is reported between 1 January and 31 March 2027.

You do not file every year. After your first return, article 42 quater.6 only requires you to file again in two cases:

1. **If your total balance rises by more than €20,000** compared with the balance that triggered your **last return**. You compare with what you last filed, not with the previous year.
2. **If you stop holding coins you had already reported**, through a sale, a transfer or death. You then report the balance on the date you stopped holding them. There is one exception: if you sell and reinvest the whole amount in other crypto abroad that you also report, you only report the 31 December balances.

The AEAT adds that a coin bought and sold within the same year, and never reported, does not need an exit entry, and that if the person who filed Form 721 dies, the undivided estate or the heirs must report that exit.

> [!IMPORTANTE]
> If you move coins you already reported on Form 721 into your own wallet, they stop being held abroad. The AEAT has not published an express answer for this case, but article 42 quater requires anyone who stops holding coins kept by a foreign custodian during the year to report it. The prudent approach is to treat it as an exit, report it and keep proof of the transfer, such as the transaction ID (hash).

## What does Modelo 721 ask for, and how is crypto valued?

Article 42 quater.3 asks for three blocks of information:

- **The custodian**: name or company name, tax ID in its country, address or website.
- **Each coin**: its full identification. The AEAT asks for the name and ticker as they appear on the reference price-tracking sites, such as Bitcoin (BTC) or Ethereum (ETH).
- **The balance**: units of each coin on 31 December and their value in euros.

To value them, you take the **31 December price** from the main trading platforms or price-tracking websites. If a coin has no price, you give a reasonable estimate of its market value. Either way, you must state which price or value you used. Each coin goes in its own record: balances are not aggregated. Form 721 can only be filed online, on the AEAT's electronic portal (sede electrónica), with the web form or, for large portfolios, an XML message.

> [!CONSEJO]
> On 31 December, save each platform's statement and the price you use, with its source and time. The [AEAT's wealth tax manual](https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/patrimonio-2025/c-3-determinacion-base-imponible/formacion-patrimonio-bruto/monedas-virtuales.html) values crypto at the 23:59 price on that day; using the same source for Form 721 and your wealth tax return avoids differences you would later have to explain.

## What is the fine for not filing Modelo 721?

The fines you still see on many websites (€5,000 per item, with a minimum of €10,000) no longer exist. After the [CJEU judgment of 27 January 2022 (case C-788/19)](https://www.boe.es/buscar/act.php?id=BOE-A-2022-3712#pr) on Modelo 720, [Law 5/2022](https://www.boe.es/buscar/act.php?id=BOE-A-2022-3712#df-4) rewrote the eighteenth additional provision without a penalty regime of its own. Since then the general articles of the General Tax Law apply:

| Situation | Penalty |
|---|---|
| Not filing Form 721, or filing it after Hacienda has demanded it | €20 per item or set of data, minimum €300 and maximum €20,000 ([art. 198.1](https://www.boe.es/buscar/act.php?id=BOE-A-2003-23186#a198)) |
| Filing late on your own initiative, before any demand | Half: €10 per item or set, minimum €150 and maximum €10,000 (art. 198.2) |
| Filing with incomplete, inaccurate or false data | Offence under [article 199](https://www.boe.es/buscar/act.php?id=BOE-A-2003-23186#a199), with a fine per item or a proportional fine depending on the type of data |

For counting, article 42 quater.7 treats the information on each custodian and the balance of each coin as a set of data, and the identification of each coin as an item.

The same law changed [article 39 of the income tax law](https://www.boe.es/buscar/act.php?id=BOE-A-2006-20764#a39). Assets that do not match your declared income or wealth are still an **unjustified capital gain** (ganancia patrimonial no justificada), taxed in the general income base of the year they are discovered, but you can now avoid that if you prove you held them since before the limitation period. The serious risk is not the Form 721 fine but income tax or wealth tax returns that do not match it.

## How does it relate to wealth tax, income tax and Modelo 720?

Form 721 does not assess any tax. It is the snapshot the AEAT uses to check the other two:

| | Form 721 | Wealth tax (Impuesto sobre el Patrimonio) | Income tax (IRPF) |
|---|---|---|---|
| What it covers | Balances with foreign custodians on 31 December | All your crypto on 31 December, wherever it is | Gains and losses when you sell or swap |
| Is tax payable? | No, it is for information only | Yes, depending on your region and total wealth | Yes, in the savings income base |
| Wallet where you hold the keys | Not reported | Reported | Taxed if you sell or swap |

For **wealth tax**, the AEAT manual requires you to report the euro balance of each coin on the accrual date, 31 December, whether it sits on a foreign exchange, a Spanish one or your hardware wallet. How much you pay depends on your region (comunidad autónoma): see the guide to [wealth tax by region](/en/blog/wealth-tax-spain-by-region).

For **income tax**, selling crypto for euros or swapping it for another coin produces a capital gain or loss. The [AEAT income tax manual](https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2025/c11-ganancias-perdidas-patrimoniales/monedas-virtuales/compra-venta-monedas-virtuales-tributacion-inversor.html) treats a crypto-to-crypto swap as an exchange of assets (permuta) and applies FIFO: the coins you bought first are treated as sold first. Those gains are taxed in the savings income base at 19% to 30%, adding the state and regional scales in [articles 66 and 76 of the income tax law](https://www.boe.es/buscar/act.php?id=BOE-A-2006-20764#a76).

**Modelo 720** covers three other categories abroad: accounts, securities and insurance, and real estate. Each block has its own €50,000 threshold, the same window and the same €20,000 rule. Crypto goes on Form 721, not Form 720. If you have just arrived, the guide to [taxes when moving to Spain](/en/blog/moving-to-spain-tax) puts all these obligations in order.

## Illustrative example: Javier, €180,000 on a foreign exchange and a hardware wallet

Javier is 49, lives in Málaga and sold his stake in a software company in 2022. His net wealth is around €3 million. On 31 December 2026 he holds crypto in three places:

| Where | What | Value on 31 December 2026 | On Form 721? |
|---|---|---|---|
| Exchange with no residence or permanent establishment in Spain | BTC €120,000, ETH €45,000 and USDC €15,000 | €180,000 | Yes |
| Hardware wallet where he holds the keys | BTC | €95,000 | No |
| Custodian resident in Spain, which files Form 172 | Various | €20,000 | No |
| **Total** | | **€295,000** | |

**Step 1. Separate what goes on Form 721.** Only the €180,000 on the foreign exchange. The €95,000 in his hardware wallet and the €20,000 with the Spanish custodian stay out.

**Step 2. Check the threshold.** €180,000 is above €50,000, so he must report all three coins on the exchange, each in its own record.

**Step 3. Compare with the last Form 721, not the previous year.** Javier filed Form 721 for 2024 with €150,000. On 31 December 2025 he had €162,000: €12,000 more, below €20,000, so he did not file for 2025. Now he has €180,000: only €18,000 more than in 2025, but €30,000 more than his last return. As that exceeds €20,000, he files Form 721 for 2026 between 1 January and 31 March 2027.

![Javier reported €150,000 on his 2024 Form 721. In 2025 his balance was €162,000, €12,000 more, so he does not file. In 2026 it reaches €180,000, €30,000 more than his last return, so he files Form 721 between 1 January and 31 March 2027.](https://storage.googleapis.com/albert-489117-melso-blog-media/diagrams/en/modelo-721/2-bars-7f4a3486f5.png?w=1600&h=840&m=1&mw=1080&mh=1377 "Illustrative example. The comparison is with the balance of the last Form 721 filed, not the previous year.")

**Step 4. Work out what he risks by not filing.** With one custodian and three coins, his return has seven items or sets of data: one for the custodian, three balances and three coin identifications. At €20 each that is €140, below the minimum, so the fine would be €300, or €150 if he filed late before Hacienda asked him to.

**Step 5. Reconcile wealth tax and income tax.** On his 2026 wealth tax return, filed in 2027, he reports the full €295,000, hardware wallet included. And if he swapped ETH for USDC during 2026, that swap is a gain or loss on his 2026 income tax return, even though the money never left the exchange.

![Javier holds €295,000 in crypto on 31 December 2026. Taking away €95,000 in his hardware wallet and €20,000 with a custodian resident in Spain leaves €180,000 on a foreign exchange, which is what he reports on Form 721. The full €295,000 counts for wealth tax.](https://storage.googleapis.com/albert-489117-melso-blog-media/diagrams/en/modelo-721/3-breakdown-c310456f6c.png?w=1600&h=948&m=1&mw=1080&mh=1608 "Illustrative example with values on 31 December 2026.")

> [!MELSO]
> Reconciling Form 721 with your wealth tax and income tax returns means gathering statements from several platforms and years, and knowing which return is your reference. At Melso Private, an AI reads your statements and past returns, your advisers review the result and, once you approve the exact version, we file the returns agreed, Form 721 included. [Request a conversation](/en/private-wealth#contacto).

## What changes with DAC8 from 2026?

DAC8 is [Directive (EU) 2023/2226](https://eur-lex.europa.eu/legal-content/ES/TXT/?uri=CELEX:32023L2226) of 17 October 2023. It extends the automatic exchange of tax information to crypto-assets: crypto-asset service providers must establish their customers' tax residence and report their transactions, and tax authorities pass that data to each other. Member states had to transpose it by 31 December 2025 and apply it from **1 January 2026**. Each year's data is exchanged within nine months of the year end, so data for 2026 will be shared by 30 September 2027 at the latest.

Spain did not make it in time. The government introduced its [transposition bill (121/000060)](https://www.congreso.es/es/busqueda-de-iniciativas?p_p_id=iniciativas&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&_iniciativas_mode=mostrarDetalle&_iniciativas_legislatura=XV&_iniciativas_id=121%2F000060) on 5 June 2025, and the Congreso lists it as lapsed since 6 October 2026, the day the Spanish parliament (Cortes Generales) was dissolved. Bringing DAC8 into Spanish law will need a new bill in the next parliament.

In practice, for you:

- **The 2026 Form 721 follows the same rules**: Order HFP/886/2023 and article 42 quater, which refer to virtual currencies. It is filed between 1 January and 31 March 2027.
- **DAC8 does not replace your filing.** The provider reports, not you, and it does not release you from Form 721 or from declaring your gains.
- **What you hold abroad will become more visible.** Providers in other states that already apply DAC8 will report under their own rules. It makes sense for your Form 721, wealth tax and income tax returns to tell the same story as that data.

![DAC8, Directive (EU) 2023/2226, applies from 1 January 2026. Spain's bill was introduced on 5 June 2025 and lapsed on 6 October 2026 when parliament was dissolved. The 2026 Form 721 is due by 31 March 2027, and DAC8 data for 2026 is exchanged by 30 September 2027 at the latest.](https://storage.googleapis.com/albert-489117-melso-blog-media/diagrams/en/modelo-721/4-timeline-cd83786a76.png?w=1600&h=804&m=1&mw=1080&mh=1842 "DAC8 and Modelo 721: the dates that matter")

## Common mistakes with Modelo 721

- **Comparing with the previous year.** The €20,000 rule is measured against the balance on the last Form 721 you filed. Like Javier, you can rise by less than €20,000 in a year and still have to file.
- **Judging by the brand or the website language.** What decides is whether the entity holding your keys is resident or has a permanent establishment in Spain and files Form 172.
- **Thinking the hardware wallet disappears.** It stays off Form 721, but it goes on your wealth tax return, and its sales and swaps are taxed on your income tax return.
- **Forgetting exits.** If you sold all the coins you had reported, you must file that year even if your final balance is below €50,000.
- **Valuing at an average price.** The rule requires the 31 December price and that you state which one you used.
- **Relying on the old fines.** Neither the €5,000 per item nor the rule that taxed undeclared assets with no time limit still applies, but Form 721 is still mandatory and the AEAT checks it against your income tax return.

## How Melso helps

Melso Private offers lawful tax planning for people with net wealth from €1 million. Tax advisers work with an AI that reads your statements and returns and cross-checks each country's rules; they review each scenario, choose the measures and stand behind them. We file the returns we agree on, such as income tax, wealth tax and Forms 720 and 721, only after you approve the exact version. The first conversation lasts 45 minutes, is free of charge, and we reply within 2 business days: [Request a conversation](https://melso.ai/en/private-wealth).

> This article is for information only and does not replace professional advice for your case. Last reviewed: 18 October 2026.

## Frequently asked questions

### What is Modelo 721?

Modelo 721 (Form 721) is Spain's information return on virtual currencies held abroad. Spanish tax residents file it when crypto held for them by custodians that do not report in Spain is worth over €50,000 in total on 31 December. It is not a tax: nothing is paid with it. It shows the AEAT, Spain's tax agency, what you hold abroad, to check against your income and wealth tax returns. Article 42 quater of the tax procedures regulation and Order HFP/886/2023 govern it.

### Who has to file Modelo 721?

Individuals and companies resident in Spain, permanent establishments of non-residents, and entities such as undivided estates or co-ownerships. Being the holder, an authorised person, a beneficiary, having power of disposal or being the beneficial owner is enough. Only crypto held by a third party that does not file Form 172 counts, and only if its total value on 31 December exceeds €50,000. Companies that record each coin individually in their accounts are exempt.

### What is the Modelo 721 deadline?

From 1 January to 31 March of the year after the one the balances refer to. Crypto you hold on 31 December 2026 is reported between 1 January and 31 March 2027. The first Modelo 721 covered the 2023 tax year and was filed in 2024. It can only be filed online, on the AEAT's electronic portal, using a web form or, for large portfolios, an XML message.

### Do I report a hardware wallet on Modelo 721?

No. The AEAT explains that crypto kept in wallets where you control the private keys, whether cold or hot, is not added to the balance and is not reported on Form 721, because no third party holds it for you. It does not disappear for tax purposes, though: it goes on your Spanish wealth tax return at its 31 December value and, if you sell it or swap it for another coin, the gain goes on your income tax return.

### Do I have to file Modelo 721 every year?

No. After your first return, you only file again when your total balance abroad has risen by more than €20,000 compared with the balance that triggered your last return, not compared with the previous year. You must also file whenever you stop holding coins you had already reported, for example because you sold them all, unless you reinvested the whole amount in other crypto abroad that you also report.

### How is crypto valued on Modelo 721?

At the 31 December price published by the main trading platforms or price-tracking websites. If there is no price, you give a reasonable estimate of its market value in euros. The return must state which price or value you used. Each coin is reported separately, with the number of units and its value in euros, rather than as one aggregated balance.

### What is the fine for not filing Modelo 721?

Since Law 5/2022, the general penalty rules of Spain's General Tax Law apply. Not filing is fined €20 per item or set of data, with a minimum of €300 and a maximum of €20,000. If you file late before Hacienda, the Spanish tax authorities, asks you to, the fine is halved: minimum €150 and maximum €10,000. The old fines of €5,000 per item no longer exist.

### Do I pay tax on my crypto through Modelo 721?

No. Form 721 only reports balances. Gains from selling crypto or swapping it for other coins are taxed on your income tax return, in the savings income base, at 19% to 30%. The value of all your crypto on 31 December, including what sits in your own wallet, goes on your wealth tax return if you have to file one. The AEAT uses Form 721 to check that everything adds up.

### What is DAC8 and does it change Modelo 721?

DAC8 is Directive (EU) 2023/2226. It requires crypto-asset service providers to report data on their customers and transactions so that EU states can exchange it from 1 January 2026. In Spain, the bill that would have transposed it lapsed on 6 October 2026 when parliament was dissolved. So the 2026 Form 721 follows the same rules as before: Order HFP/886/2023 and article 42 quater of the regulation.

### Does an exchange that operates in Spain count as foreign for Modelo 721?

It depends on who holds your keys, not on the brand or the language of the website. Your crypto is abroad if the entity that holds it is neither resident in Spain nor has a permanent establishment here, because then it does not file Form 172. If it is resident or has a permanent establishment in Spain, it reports in Form 172 and you leave that crypto out of Form 721. The Banco de España publishes a register of providers.

## Sources

- [Order HFP/886/2023 of 26 July approving Form 721 (deadline and first tax year)](https://www.boe.es/buscar/act.php?id=BOE-A-2023-17429), BOE, accessed 2026-10-18
- [Royal Decree 1065/2007, general regulation on tax management and inspection (consolidated text): article 42 quater](https://www.boe.es/buscar/act.php?id=BOE-A-2007-15984), BOE, accessed 2026-10-18
- [Law 58/2003, General Tax Law (consolidated text): articles 15, 16, 198 and 199 and eighteenth additional provision](https://www.boe.es/buscar/act.php?id=BOE-A-2003-23186), BOE, accessed 2026-10-18
- [Law 5/2022 of 9 March: preamble (CJEU judgment C-788/19) and fourth and fifth final provisions](https://www.boe.es/buscar/act.php?id=BOE-A-2022-3712), BOE, accessed 2026-10-18
- [Law 35/2006 on personal income tax (consolidated text): articles 39, 66 and 76 and thirteenth additional provision](https://www.boe.es/buscar/act.php?id=BOE-A-2006-20764), BOE, accessed 2026-10-18
- [Frequently asked questions on Form 721](https://sede.agenciatributaria.gob.es/Sede/todas-gestiones/impuestos-tasas/declaraciones-informativas/modelo-721-decla-sobre-monedas-extranjero/preguntas-frecuentes-sobre-modelo-721.html), AEAT, accessed 2026-10-18
- [Wealth tax practical manual 2025: virtual currencies](https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/patrimonio-2025/c-3-determinacion-base-imponible/formacion-patrimonio-bruto/monedas-virtuales.html), AEAT, accessed 2026-10-18
- [Income tax practical manual 2025: buying and selling virtual currencies, how the investor is taxed](https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2025/c11-ganancias-perdidas-patrimoniales/monedas-virtuales/compra-venta-monedas-virtuales-tributacion-inversor.html), AEAT, accessed 2026-10-18
- [Council Directive (EU) 2023/2226 of 17 October 2023 (DAC8)](https://eur-lex.europa.eu/legal-content/ES/TXT/?uri=CELEX:32023L2226), EUR-Lex, accessed 2026-10-18
- [Bill 121/000060 transposing DAC8: status Concluded (lapsed) since 6 October 2026](https://www.congreso.es/es/busqueda-de-iniciativas?p_p_id=iniciativas&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&_iniciativas_mode=mostrarDetalle&_iniciativas_legislatura=XV&_iniciativas_id=121%2F000060), Congreso de los Diputados, accessed 2026-10-18