For years, the crypto strategy for expats in Spain was: “Don’t ask, don’t tell.”
You held your Bitcoin on a Ledger or your USDT on Binance. You cashed out small amounts to your Revolut card. You slept soundly.
In 2026, the alarm clock has rung.
The implementation of the EU’s MiCA (Markets in Crypto-Assets) regulation and the DAC8 directive has created a direct data pipeline between major exchanges and the Spanish Tax Agency (Hacienda).
If you are a tax resident in Spain, you need to understand Form 721. Ignoring it could cost you everything.
What is Form 721?
It is the “Crypto Brother” of the infamous Form 720.
It is an Informative Declaration. You do not pay tax when you file it. You simply tell the government: “Hey, I have these coins.”
The Trigger: If the total value of your crypto assets held in non-Spanish custodial wallets (Exchanges like Binance, Coinbase, Kraken) exceeds €50,000 on December 31st, you must declare.
- Deadline: January 1st to March 31st.
- What to report: Balances, wallet addresses, and exchange names.
The “Cold Wallet” Gray Area: Technically, crypto held in self-custody “Hardware Wallets” (Ledger, Trezor) without a third-party custodian does not strictly trigger Form 721… yet. But be warned: the moment you move that crypto to an exchange to sell, the trail lights up.
The “MiCA” Trap
Why declare now? Because they already know.
Under the new EU rules, any exchange operating in Europe must report users’ balances and transactions to their local tax residency authority.
If Binance sends a report saying: “User John Doe held €120,000 in BTC” and John Doe didn’t file Form 721… the computer sends an automatic fine.
The Beckham Law: The Ultimate Shield
Once again, the Beckham Law proves its worth.
If you are on the Special Expats Regime:
- You are EXEMPT from filing Form 721.
- You are EXEMPT from filing Form 720.
- You pay 0% tax on crypto gains (as long as the gains are not considered “Spanish sourced”).
The Irony: A standard freelancer earning €40k/year has to file Form 721 and risk fines. A tech executive on the Beckham Law earning €200k/year reports nothing.
JuroSpain Advice
- Audit your Holdings: Check your December 31st snapshots. Are you over €50k?
- Don’t hide: If you are a standard tax resident, file the 721. The fine for not filing is far worse than the headache of filing.
- Get the Beckham Law: If you are still within your first 6 months of arriving, apply for the Beckham Law immediately. It is the only way to keep your crypto truly private.
Frequently Asked Questions
Do I have to declare my crypto if I don't sell it?
Yes. If you hold more than **€50,000** in crypto assets on 'Foreign Exchanges' (like Binance, Coinbase, Kraken) as of December 31st, you MUST file the informative **Form 721** by March 31st. This is not a tax payment; it is a declaration of assets.
What happens if I forget to file Form 721?
The fines are brutal. While the EU courts struck down the old '150% penalty', you still face fixed fines of €20 per undeclared record (minimum €300) and potential audits where they treat undeclared assets as 'unjustified capital gains' taxed at your marginal rate (up to 47%).
Can Hacienda really see my Binance account?
In 2026, yes. The EU's **DAC8** directive and **MiCA** regulation force crypto service providers (CASPs) to share user data with tax authorities. The days of 'invisible crypto' are over.
Does the Beckham Law protect my crypto?
Yes! This is the major loophole. If you are under the Beckham Law, you **DO NOT** have to file Form 721 or Form 720 for assets held outside Spain. Your foreign crypto remains invisible to Spanish Wealth Tax (unless you hold it on a Spanish exchange like Bit2Me).
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