Frequently asked questions about model 721 (HTML)
Skip information indexWho is required to present form 721?
Those required to submit form 721, “Informative declaration on virtual currencies located abroad”, are those defined in section 1 of article 42 quater of the General Regulation of the actions and procedures of tax management and inspection and development of the common standards for tax application procedures, approved by Royal Decree 1065/2007, of July 27 (RGAT, hereinafter), that is, natural and legal persons residing in Spanish territory, establishments permanent residences in said territory of non-resident persons or entities and the entities referred to in article 35.4 of Law 58/2003, of December 17, General Tax, that are holders of virtual currencies abroad, or with respect to which have the status of beneficiaries, authorized or in some other way hold power of disposition, or of which they are beneficial owners , guarded by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties, to maintain , store and transfer virtual currencies, as of December 31 of each year.
This obligation also extends to those who have been holders, authorized, or beneficiaries of the aforementioned virtual currencies, or have had powers of disposal over them, or have been real owners at any time of the year to which the declaration refers and who have lost this condition on December 31 of that year. In these cases, the information to be provided will be that corresponding to the date on which said extinction occurred.
For these purposes, the real owner will be understood as someone who has such consideration in accordance with the provisions of section 2 of article 4 of Law 10/2010, of April 28, on the prevention of money laundering and the financing of terrorism, regarding virtual currencies abroad.
The informative declaration on virtual currencies located abroad extends to all taxpayers defined in section 1 of article 42 quater of the RGAT, and the corresponding declaration must be submitted by subjects domiciled in the Basque Country and Navarra, in accordance with the respective state or provincial regulations to which they are subject.
Remaining inheritances are obliged to report to the extent that they are entities of article 35.4 of Law 58/2003, of December 17, General Tax.
The heirs or legatees will be obliged to inform as soon as there is tacit or express acceptance of the inheritance.
For there to be an obligation to declare virtual currencies located abroad by submitting form 721, two requirements must meet:
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That said virtual currencies be guarded by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies.
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That the persons or entities referred to in the previous paragraph are not residents in Spain or permanent establishments in Spanish territory of persons or entities residing abroad.
Consequently, with regard to the first requirement, only if virtual currencies are guarded by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties or to maintain, store and transfer currencies, the second would be assessed. requirement and the rest whose compliance implies the obligation to present this informative statement.
In this sense, with regard to the first requirement, it should be noted that in the cryptoasset ecosystem there are different means by which virtual currencies or the means of access to them, that is, private cryptographic keys, can be guarded. .
In general, the so-called “wallets” or custodian and non-custodial purses can be distinguished , depending on whether the custody and, therefore, in some way the control, of the cryptoassets or their keys is maintained for a third party or by the user himself . Likewise, a distinction is made between so-called “hot wallets” and “cold wallets”, depending on whether the wallet is connected to the Internet and the keys are kept “online” or not. As observed in practice, and again in general terms, it could be said that “cold wallets” function as non-custodial wallets.
Therefore, regardless of whether it is a “hot wallet” or a “cold wallet”, the virtual currencies that are kept in wallets for which the consultant maintains control of the private cryptographic keys and, therefore, are not guarded by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies, in accordance with the eighteenth Additional Provision, letter d) , of the LGT and with article 42 quater of the RGAT, would not be taken into account in the calculation of the balances referred to in sections 3.c) and 5.d) of article 42 quater and , consequently, would not be reported on them within the framework of the obligation to provide information on virtual currencies located abroad .