What is Modelo 721?
Modelo 721 is an informational tax return that must be filed by individuals and entities holding cryptocurrencies abroad, provided the total value of the cryptocurrencies exceeds €50,000 by the end of the year.
Who is required to file Modelo 721?
Individuals and entities who hold cryptocurrencies outside of Spain and whose total value exceeds €50,000 as of December 31st of each year must file this form.
Do I need to submit it every year?
No, you do not have to file Modelo 721 automatically every year.
According to the rules:
- If you already filed the form the previous year, you only need to file it again if the total balance of your cryptocurrencies abroad has increased by more than €20,000 compared to the last submitted report.
- If the increase does not exceed this amount, there is no need to submit the form again that year.
- The only exception: if during the year you had cryptocurrencies that you no longer held, you must report the information as of the date you ceased to hold them, even if the €20,000 threshold is not exceeded.
In summary: filing is not automatic each year; it depends on changes in your balance or if you have lost ownership of any cryptocurrency.
What is the deadline to file Modelo 721?
The deadline to file Model 721 is usually between January and March of the year following the fiscal year in question.
What information is required on Modelo 721?
The form requires details on the balance, acquisition value, and custodial entity data from the cryptocurrencies abroad during the fiscal year.
What is the difference between Modelo 720 and Modelo 721?
- Modelo 720 is an informational return for assets and rights located abroad (bank accounts, properties, securities, insurances, etc.), and must be filed if the value of these assets exceeds €50,000 for each category.
- Modelo 721 is specific for declaring cryptocurrencies located outside of Spain and is only used for this type of asset, also if their total value exceeds €50,000.
What happens if I don't submit Modelo 721?
Failure to file Modelo 721 may result in penalties imposed by the Tax Agency.
Is this form included in my Xolo subscription?
No, it is not included. If you have purchased the current year’s “all-inclusive” tax return package with us and you are required to file this form, you will receive a discount on the total price. Contact ayuda@xolo.io and you can benefit from this discount. If you don’t have the “all-inclusive” Renta package, you can purchase the service on the platform in your dashboard under “Additional Services”.