Taxes
New crypto regulations 2026: the obligation to report your holdings to the Tax Agency
Stricter tax controls on crypto assets now require more taxpayers to declare their balances on domestic and foreign exchanges. We review which forms must be filed and what happens if you do not.
Key takeaways
Failing to declare foreign-held cryptocurrency above €50,000 can result in penalties that far exceed the value of the capital gain generated.
- Form 721 requires declaring cryptocurrency held abroad when its combined value exceeds €50,000 as of December 31.
- Exchanges operating in Spain are already required to automatically report user activity to the Tax Agency under the DAC8 regulation.
- Capital gains from selling or exchanging crypto assets are still taxed under the personal income tax savings base, at rates from 19% to 28% depending on the amount.
What Form 721 requires you to declare
Form 721 is the specific informative declaration on virtual currencies held abroad, required for those who keep their crypto assets on exchanges or custodial wallets outside Spain when the combined balance as of December 31 exceeds €50,000.
Not filing it, or filing late, triggers a penalty regime specific to reporting obligations on assets held abroad, with fines that can be disproportionate to the undeclared amount.
Quick tips
- If you use a foreign exchange, download the annual balance history before the tax year closes to calculate whether you exceed the €50,000 threshold.
The new automatic reporting under DAC8
The European DAC8 directive requires crypto asset service providers to automatically share their users' transaction data with EU tax authorities, similar to how it already happens with traditional bank accounts.
This drastically reduces the room for not declaring crypto gains out of ignorance, as the Tax Agency will be able to cross-check exchange data directly with the filed tax return.
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