Spain’s tax agency says self-custodied crypto does not fall under Modelo 721 reporting

Spain’s State Tax Administration Agency, or AEAT, has updated its FAQ for Modelo 721, the information return covering crypto assets held abroad. In the updated guidance, the agency states that self-custodied cryptocurrencies are not subject to this filing requirement when the holder retains direct and full control of the private keys. The clarification narrows the scope of the reporting obligation. Under the rule described by AEAT, a Spanish tax resident must file the report only when the private keys are entrusted to a third-party institution that is not a Spanish tax resident and the total value of crypto assets held abroad exceeds 50,000 euros as of Dec. 31 each year. In that case, the information return must be submitted between January and March of the following year. The update was reported by Techub News, citing Wu Blockchain.