The Spanish Treasury Ministry admitted that Model 720 does not require Spaniards declare cryptocurrency holdings. This is due to funds held overseas. Spanish Tax Agency stated that citizens are not required to disclose their cryptocurrency holdings. This is even if the underlying rules have not been established.

Citizens will not need to include any crypto-related information in the Model 720 statement corresponding last year’s movements. This is despite the fact that it was approved by the Antifraud Law last year. Esau Alarcon (Attorney in Gibernau) stated this:

There is no need to declare. There is not much information to declare. Model 720 does not contain any cryptocurrency data or values. It is not clear how cryptocurrencies are declared in the model.

There are no changes in other areas

The declaration of cryptocurrency was not changed in other tax areas. There is no specific area on the income tax form that allows cryptocurrencies to be included. Only one change has been made to the income tax form: cryptocurrencies now have a specific area that taxpayers must fill out. Local media reports that this change is a formality since many Spanish citizens already declared cryptocurrency as their wealth in other ways.

Projects are being considered to include cryptocurrencies into a future Model 720. This new regulation could be approved for the next tax season. Due to the extraordinary penalties imposed by European courts on the Model 720, it was declared illegal. Some taxpayers have already been reimbursed for penalties under this model.

The law that remains includes the obligation of cryptocurrency information, but does not include the EU-recommended penalties.