Spain’s tax authorities have confirmed that cryptocurrency kept in self custody wallets does not have to be reported under Form 721, provided the owner retains control of the private keys and the assets are not held by a foreign third party custodian.
Summary
- Spain says crypto held in self custody does not fall under Form 721 when taxpayers control their private keys.
- Foreign custodial holdings can require reporting when a third party outside Spain safeguards the keys.
- Hot and cold wallets receive the same treatment, with custody and control rather than wallet type determining the reporting requirement.
- DAC8 can still generate transaction reporting records when crypto…
