Modelo 720 vs 721: What happens with cryptocurrencies?
IMPORTANT: Cryptocurrencies are no longer declared in 720. Learn about the new Modelo 721.
If you have foreign assets, you're probably wondering where your Bitcoins or Ethereum fit. Recently, the rules have changed: cryptocurrencies are no longer part of Model 720.
To avoid penalties, it's vital to understand the difference between Model 720 (traditional assets) and the new Model 721 (virtual currencies). Here's everything you need to know to comply with the Tax Agency this year.
The key difference: Which model should I file?
The Tax Agency has separated digital assets from traditional assets to improve crypto oversight.
- Model 720: Used to declare foreign bank accounts, securities, insurance, and real estate.
- Model 721: Specific model exclusively for virtual currencies held abroad (custodied by non-Spanish resident exchanges like Binance, Coinbase, Kraken, etc.).
Golden rule: If your cryptocurrencies are on a foreign exchange and exceed €50,000, you must file Model 721, not 720.
When is Model 721 mandatory?
Not all crypto holders must declare. File Model 721 only if you meet these conditions at December 31st:
- External custody: Cryptocurrencies managed by entities (exchanges) not resident in Spain.
- €50,000 threshold: Total value of foreign cryptocurrencies exceeds €50,000.
- Cold wallets (Ledger/Trezor): If you hold private keys and coins aren't on an exchange, current regulations are debated, but 721 obligation focuses on coins "located abroad" under third-party custody.
Comparison: Model 720 vs. Model 721
| Feature | Model 720 | Model 721 |
|---|---|---|
| Assets | Bank accounts, real estate, stocks | Cryptocurrencies / Virtual currencies |
| Minimum limit | €50,000 per block | €50,000 total crypto |
| Deadline | January 1 - March 31 | January 1 - March 31 |
| Location | Assets abroad | Non-resident Spanish exchanges |
How Aitax helps with your Model 720 (complementary to 721)
While you prepare your Model 721 for cryptocurrencies, Aitax specializes in your Model 720 for other foreign assets:
- Complete extraction: Upload IBKR, Degiro, XTB, Revolut reports... and Aitax processes accounts (Type C), securities (V/I), real estate (B).
- Perfect complement: Use Aitax for 720 + official tools for 721.
With Aitax you automate your Model 720 while preparing 721 manually or with official tools.
Frequently Asked Questions (FAQ)
If I have €40,000 in the bank and €20,000 in crypto, do I need to declare?
No. The €50,000 limits are independent. You don't reach the minimum for either 720 or 721 blocks.
What if my cryptos are on a Spanish exchange?
If the exchange is based in Spain, they already report to the Tax Agency. You don't need to file Model 721, though you must declare income in your IRPF.
Conclusion
Model 721 is the new reality for cryptocurrency investors. Separating it from Model 720 is crucial to avoid errors that the Tax Agency easily detects through international data cross-checks.
Don't risk unnecessary penalties. Use Aitax for your Model 720 traditional assets.
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