Form 714 for Cryptocurrencies: Complete Wealth Tax Guide

Form 714 is one of the least known tax forms among cryptocurrency investors, but it can be decisive for those who have accumulated significant portfolios. Unlike Form 100 which taxes gains obtained during the year, Form 714 taxes the mere holding of wealth, including digital assets. If your crypto portfolio has grown substantially, this form may directly affect you and generate a tax obligation that many investors are unaware of.

This article analyzes in depth how the Wealth Tax applies to cryptocurrencies, when you are obligated to file, how to correctly value your digital assets including Bitcoin, Ethereum, DeFi tokens, NFTs and staking positions, and what legal strategies exist to optimize your tax situation without incurring risks with the Tax Agency.

Form 714 is the Wealth Tax declaration, a tax that levies the net wealth of individuals residing in Spain. This tax is not applied on the gains you generate, but on the total value of what you own as of December 31st of each year. It's a tax on accumulated wealth, not on returns obtained.

For cryptocurrency investors, this means that even if you haven't sold a single satoshi during the year, if the value of your portfolio exceeds certain thresholds, you will be obligated to declare and potentially pay this tax. It's a fundamentally different concept from income tax: here it doesn't matter if you've gained or lost in your operations, what matters is how much wealth you've accumulated.

Cryptocurrencies are considered intangible assets for Wealth Tax purposes, comparable to other financial assets such as stocks, investment funds or bank deposits. The AEAT has made clear in successive binding consultations that Bitcoin, Ethereum, stablecoins and other crypto assets are part of the tax base of this tax when they exceed established thresholds.

The exponential growth of the crypto market in recent years has made this tax a reality for many investors who bought Bitcoin or Ethereum in previous cycles and have seen their positions multiply in value. What started as a modest investment may have become significant wealth that generates specific tax obligations.

Difference from other crypto tax forms: the complete ecosystem

It's essential to understand how Form 714 fits with other tax obligations related to cryptocurrencies. Each form has a specific function and can perfectly coexist for the same taxpayer. In our guide on Forms 100, 721 and 714 we explain in detail the differences and when each one applies.

Form 100 (Income Tax Declaration or IRPF) declares capital gains generated by operations during the fiscal year. If you buy Bitcoin for 10,000 euros and sell it for 15,000 euros, you pay tax on the 5,000 euros gain. It also includes capital income from staking, lending or yield farming. It's the tax on what you've earned.

Form 721 is an informative declaration about cryptocurrencies located abroad. It doesn't generate tax by itself, but informs the Tax Agency about your holdings outside Spain when they exceed 50,000 euros on December 31st. It's an information obligation, not a payment.

Form 714 taxes the value of your total wealth, regardless of whether you have traded or not. If on December 31st you have cryptocurrencies valued at 2 million euros, you pay tax on that wealth even if you haven't made any transaction during the year. It's the tax on what you have.

These three forms can and usually coexist for the same taxpayer in the same fiscal year. An investor can file Form 100 for gains from their operations, Form 721 for their holdings in foreign exchanges, and Form 714 for the total value of their wealth. They are not exclusive, but complementary, and coherence between them is fundamental to avoid errors that can be very costly.

Not all taxpayers are obligated to file Form 714. There are thresholds that determine when this obligation arises, and they vary significantly according to the autonomous community of residence. Knowing these limits is essential to know if you are affected by this tax.

State and regional exempt minimum

At the state level, there is an exempt minimum of 700,000 euros on total net wealth. This means that if your wealth (including cryptocurrencies, real estate, vehicles, bank accounts, stocks and any other asset) does not exceed this figure, you will not pay wealth tax under state regulations. However, each autonomous community can modify both the exempt minimum and tax rates, generating very different situations depending on where you reside.

In addition to the general exempt minimum, there is an exemption of 300,000 euros for the primary residence. This exemption does not directly affect cryptocurrencies, but it does affect the calculation of total net wealth. If you have a primary residence valued at 400,000 euros, only 100,000 euros will count in your Wealth Tax base.

The obligation to declare arises when gross wealth (without deducting debts) exceeds 2,000,000 euros, or when the resulting tax quota is positive. This means that even if your net wealth is below the exempt minimum, if your gross wealth exceeds 2 million you must file the declaration even if it's zero.

Critical variations by autonomous community

The Wealth Tax is transferred to the autonomous communities, generating dramatic differences in actual taxation depending on where you reside. This is one of the peculiarities of the Spanish tax system that most affects investors with significant wealth.

Madrid has historically provided a 100% bonus on the quota, which in practice means its residents do not pay autonomous Wealth Tax. A Madrid resident with 5 million euros in cryptocurrencies would pay nothing for Form 714. However, the Temporary Solidarity Tax on Large Fortunes may still apply if they exceed 3 million in net wealth.

Andalusia has also implemented 100% bonuses in recent years, positioning itself similarly to Madrid for autonomous Wealth Tax.

Catalonia maintains the tax with rates that can reach up to 2.75% for the highest brackets. A Catalan taxpayer with the same 5 million patrimony could pay tens of thousands of euros annually.

Valencia, Extremadura, Asturias and other communities maintain the tax with different scales and rates that can exceed 3% in the upper brackets.

This disparity makes wealth tax planning especially relevant for large cryptocurrency holders. However, any change of residence must be real and effective, with genuine permanence in the new domicile for more than 183 days per year. Fictitious residence changes are actively investigated by the AEAT and penalties are severe.

Temporary Solidarity Tax on Large Fortunes

Since 2022, there has been a complementary state tax called the Temporary Solidarity Tax on Large Fortunes (ITSGF), specifically designed to tax high wealth in communities that bonus the Wealth Tax. This tax emerged as a response from the central Government to regional bonuses and seeks to guarantee minimum taxation for large fortunes.

The ITSGF affects net wealth exceeding 3 million euros, with rates ranging from 1.7% to 3.5% for wealth exceeding 10.6 million. For large cryptocurrency investors residing in communities with Wealth Tax bonuses like Madrid or Andalusia, this tax can represent a significant tax burden they didn't expect.

The constitutionality of this tax has been questioned and there are pending appeals, but meanwhile it remains mandatory. Affected taxpayers must file Form 718 in addition to Form 714.

The correct valuation of digital assets is one of the most technical and critical aspects of Form 714. The AEAT requires that cryptocurrencies be valued at market price as of December 31st of the corresponding fiscal year. It's not valid to use the purchase price, the average price of the year, or any other criterion: it must be the market value at the exact moment of tax accrual.

General valuation methodology

The general criterion establishes that assets are valued at their market value at the time of tax accrual, which coincides with December 31st at 23:59:59. For cryptocurrencies, this implies obtaining the quote for each asset on that specific date and converting it to euros if denominated in another currency.

The accepted practice consists of using recognized price sources such as CoinMarketCap, CoinGecko, or the exchanges themselves where you have the assets custodied. What's important is to apply a consistent criterion year after year and adequately document the sources used in case the Tax Agency requires justification.

For each cryptocurrency you own, you must multiply the exact units you have by the unit price on December 31st. If you use several platforms to custody your assets, you must add the positions from all of them. Using portfolio tracking tools can greatly facilitate this process.

Stablecoin valuation: a particular case

Stablecoins like USDT, USDC or DAI deserve special attention. Although their value in dollars is theoretically stable around 1 USD, for Form 714 you must value them in euros using the EUR/USD exchange rate of December 31st. As we explain in our article about stablecoins and taxation, many investors make errors assuming that stablecoins don't tax or that their value is always 1 euro.

If you have 100,000 USDC and the EUR/USD exchange rate on December 31st is 1.10, the value to declare would be approximately 90,909 euros, not 100,000. This nuance may seem minor, but in large amounts the difference is significant.

Practical example of diversified portfolio valuation

Let's assume that on December 31, 2025 you own the following portfolio distributed across several exchanges and wallets:

This value of 509,500 euros in cryptocurrencies would be added to the rest of your wealth (real estate, bank accounts, vehicles, stocks, pension plans, etc.) to determine if you exceed the declaration threshold and calculate the total tax base.

DeFi tokens, LP tokens and complex assets

Valuation becomes significantly complicated when you have assets in DeFi protocols. LP tokens, liquid staking positions, governance tokens, positions in liquidity pools or deposits in lending protocols must also be valued and included in wealth.

For LP tokens (liquidity provider tokens), the value to declare is the market value of the complete position on December 31st, including both the deposited principal and accumulated unclaimed fees. If you have a position in an ETH/USDC pool on Uniswap valued at 50,000 euros on December 31st, that is the amount to include, regardless of how much you originally deposited.

For staking positions, you must include both the main staked tokens and accumulated rewards pending claim. If you have 32 ETH staked plus 1.5 ETH of accumulated rewards, the value to declare is the complete 33.5 ETH multiplied by the December 31st price.

Governance or utility tokens are valued at their market price if they trade on recognized exchanges. For tokens without clear quotation or with very low liquidity, a reasonable value based on the last known transaction can be applied, or even zero value if adequately justified that the token lacks market value.

NFTs: the gray area of wealth valuation

NFTs (non-fungible tokens) present special valuation challenges for Form 714. Unlike Bitcoin or Ethereum, each NFT is unique and may not have a clear market price. As we analyze in our NFT taxation guide, valuing these assets requires judgment and additional documentation.

For NFTs with an active market (collections quoted on OpenSea, Blur or other marketplaces), the floor price of the collection or the price of the last comparable sale can be used. For unique NFTs or collections without liquidity, valuation is more subjective and can be based on acquisition price, appraisals or even zero if justified.

The important thing is to document the criterion used and apply it consistently. The AEAT can question valuations it considers artificially low, so maintaining evidence of the reasoning followed is fundamental.

Once the total value of wealth is determined and the corresponding reductions are applied (exempt minimum, primary residence exemption, debts), a progressive tax scale is applied to calculate the tax quota.

Complete state tax scale

The state Wealth Tax scale is progressive, starting at 0.2% for the first wealth brackets and reaching up to 3.5% for the highest brackets:

Remember that this is the state scale. Autonomous communities can modify these rates upward or downward, and some like Catalonia have their own scales with different brackets.

Joint limit with income tax: the tax shield rule

There is an important limit that many are unaware of: the sum of the Wealth Tax and Income Tax quotas cannot exceed 60% of the taxpayer's general and savings taxable base. This limit, known as the "tax shield," protects taxpayers with high wealth but moderate income from confiscatory taxation.

However, this limit has in turn a limit: the reduction from applying this rule cannot exceed 80% of the Wealth Tax full quota. That is, at least 20% of the quota resulting from applying the scale will always be paid.

For cryptocurrency investors with highly appreciated portfolios but who haven't sold (and therefore don't have significant savings income), this mechanism can offer some protection, although limited.

Detailed calculation example for a cryptocurrency holder

Let's look at a practical case. A taxpayer residing in Catalonia has the following wealth:

• Primary residence: 450,000 EUR (300,000 EUR exempt, 150,000 EUR counts)
• Cryptocurrencies: 1,800,000 EUR
• Bank accounts: 50,000 EUR
• Vehicle: 30,000 EUR
• Pending mortgage: -180,000 EUR

Gross wealth: 2,330,000 EUR Net wealth: 2,150,000 EUR (after deducting mortgage) Exempt minimum in Catalonia: 500,000 EUR Taxable base: 1,650,000 EUR

Applying the Catalan scale, the resulting quota would be approximately 17,500 euros in Wealth Tax.

If that same taxpayer resided in Madrid, the 100% regional bonus would eliminate the Wealth Tax. However, if their net wealth exceeded 3 million, they would be subject to the Solidarity Tax on Large Fortunes.

For taxpayers with cryptocurrencies in foreign exchanges or non-custodial wallets, there is a direct and critical relationship between Form 721 and Form 714. The AEAT automatically cross-references information from both declarations, and inconsistencies generate almost immediate requirements.

Form 721 requires reporting on cryptocurrencies located abroad when their value exceeds 50,000 euros on December 31st. This informative declaration is filed in the first quarter of the following year (from January 1st to March 31st) and details each position with its balance and valuation at year end.

The information from Form 721 directly feeds the wealth valuation for Form 714. In fact, the AEAT uses 721 data to verify that taxpayers correctly include their crypto assets in the Wealth Tax. If you declare 500,000 euros in crypto in 721 but only 300,000 in 714, you will receive a request for explanation.

Maintaining absolute coherence between both declarations is fundamental. Use the same price sources, the same valuations, and document everything. As we explain in the article about the DAC8 Directive, tax transparency in the crypto field is increasing rapidly and discrepancies will be increasingly easier to detect.

There are various legal strategies to optimize the Wealth Tax burden. It's crucial to distinguish between legitimate tax optimization (legal and advisable) and tax evasion (illegal and severely sanctioned). A specialized tax advisor can help you identify which options apply to your specific situation.

Tax residence planning

Residence in autonomous communities with bonuses can significantly reduce or eliminate the Wealth Tax. Madrid and Andalusia are currently the most favorable options. However, the change of residence must be real, effective and demonstrable:

• Effective physical permanence in the new domicile for more than 183 days per year
• Change of center of economic interests
• Municipal register update
• Domiciliation of utilities, services and correspondence
• Change of health center and other public services

The Tax Agency actively investigates fictitious residence changes, especially when they coincide with significant wealth increases. Penalties for simulated residence include surcharges of 50-150%, late interest and possible criminal consequences in serious cases.

Wealth structuring: companies and foundations

Some wealth structures can offer tax advantages. Participations in family businesses are exempt from Wealth Tax if they meet certain requirements:

• The company must carry out a real economic activity
• The taxpayer must have at least 5% participation (or 20% together with relatives)
• The taxpayer must hold remunerated management functions that represent more than 50% of their employment income

However, structuring cryptocurrencies through companies solely to avoid Wealth Tax may be considered an artificial arrangement without real economic substance. The AEAT applies the general anti-avoidance clause to these operations and has won numerous litigations against structures without economic justification beyond tax savings.

Donations and anticipated succession planning

Donations to family members can reduce the donor's wealth, although they generate taxation through Gift Tax for the recipient. Depending on the autonomous community and degree of kinship, bonuses on donations between parents and children can exceed 99%, making this strategy fiscally very efficient.

Anticipated succession planning can also be relevant for large cryptocurrency fortunes. Some communities offer very generous bonuses on Inheritance Tax between direct relatives, which can make it preferable to transmit wealth during life or at death versus maintaining it and paying annually for Wealth Tax.

Debt and liability compensation

Net wealth is calculated by subtracting debts from gross wealth. Structuring personal financing so that deductible debts exist can reduce the tax base. Mortgages on real estate, investment loans and other genuine debts subtract from taxable wealth.

However, debts must be real and properly documented. Creating artificial debts or between related parties without economic justification can be considered tax fraud.

The Wealth Tax declaration in relation to cryptocurrencies generates recurring errors that are worth knowing to avoid them. As we develop in our guide to common errors when declaring cryptocurrencies, most are avoidable with adequate planning.

Omitting DeFi assets and complex positions

Many taxpayers include their cryptocurrencies custodied in centralized exchanges but forget positions in decentralized protocols. LP tokens in Uniswap or PancakeSwap, staking positions in Lido or Rocket Pool, deposits in lending protocols like Aave, and other DeFi assets are also part of wealth and must be valued and included.

If you have DeFi positions, you need to export and document your history to have a complete record of your assets on December 31st.

Using incorrect valuations

Applying the average price of the year, the acquisition price, or the price of the last day you traded instead of the exact market value on December 31st is a frequent error. The Wealth Tax requires valuation at the accrual date, regardless of what you originally paid for the assets or how the price fluctuated during the year.

Ignoring the tax due to residing in Madrid or Andalusia

Although Madrid and Andalusia bonus 100% of the autonomous Wealth Tax, the Solidarity Tax on Large Fortunes may still apply for net wealth exceeding 3 million euros. Assuming that residing in these communities means no tax obligation on wealth can be a very costly mistake.

Not coordinating with Form 721 and Form 100

Discrepancies between Form 721 (declaration of crypto abroad), Form 714 (wealth) and Form 100 (income) generate automatic alerts in AEAT systems. If you sell cryptocurrencies and declare the gain in income tax, the wealth variation between one year and another must be coherent. Keeping all three declarations coordinated and using the same valuations and criteria avoids unnecessary requirements.

Not adequately documenting valuations

In case of inspection, the AEAT can request justification of how you valued your assets. Maintaining screenshots of quotations on December 31st, exports of your balances in exchanges and wallets, and documentation of price sources used is fundamental. Without this documentation, defending a valuation can be very difficult.

Form 714 is filed during the income tax campaign, generally between April and June of the year following the declared fiscal year. The exact deadline coincides with that of Form 100 for income tax and is published each year in the BOE.

Filing is exclusively electronic through the AEAT electronic headquarters (www.agenciatributaria.es), using a digital certificate, electronic DNI or Cl@ve system. There is no option for in-person or paper filing.

The form is integrated into the AEAT's Renta Web program. When starting your income tax declaration, the system will ask if you must also file Wealth Tax and will guide you through the process if applicable. You can also access Form 714 directly from the electronic headquarters.

Payment can be split into two installments like income tax (60% in the first installment, 40% in the second), or direct debited for account charge on the dates established by the Tax Agency. If the result is a refund, it is processed together with the income tax refund.

To correctly prepare your Wealth Tax declaration with digital assets, follow this checklist:

Before December 31st:

• Document all your positions in centralized exchanges (Binance, Kraken, Coinbase, etc.)
• Export balances from your non-custodial wallets (Metamask, Ledger, Trezor)
• Identify all your DeFi positions (staking, lending, liquidity pools)
• Prepare a list of your NFTs with approximate valuations

On December 31st:

• Take screenshots of your balances on each platform
• Record official quotations for each asset (CoinMarketCap, CoinGecko)
• Note the EUR/USD exchange rate for dollar-denominated stablecoins

During the income tax campaign:

• Calculate the total value of your crypto portfolio on December 31st
• Add with the rest of your wealth (real estate, accounts, vehicles, etc.)
• Subtract your deductible debts
• Determine if you exceed your community's declaration threshold
• File Form 714 together with income tax if applicable

The Wealth Tax is an unavoidable reality for cryptocurrency investors who have seen their portfolios grow significantly. Understanding when the obligation to declare arises, how to correctly value digital assets including DeFi tokens, staking positions and NFTs, and what optimization strategies are legitimate allows you to comply adequately with the Tax Authority while minimizing the tax burden within the legal framework.

The complexity of this tax, especially when combined with Form 721, Income Tax and new regulations like DAC8, makes it highly advisable to have specialized advice. The implications of errors or omissions can be severe, including surcharges, interest and penalties.

At Cleriontax we offer a comprehensive crypto taxation service that includes the preparation of Form 714 along with the rest of tax obligations related to your digital assets. Our data engineering-based approach ensures that no position is missed and that valuations are accurate and defensible.

Your next step: If your cryptocurrency portfolio has grown significantly, don't wait for the tax campaign to plan. Contact our team for a personalized assessment of your wealth situation and the optimization options available.

Disclaimer: This article is for informational and educational purposes. It does not constitute personalized tax or legal advice. Tax regulations are subject to change and each personal situation is unique. Always consult with professionals before making tax decisions.

Last updated: January 2026

Published by: Cleriontax Team - Experts in Crypto Taxation and Digital Wealth