diff --git a/src/qemu/qemu_block.c b/src/qemu/qemu_block.c
index eab21bc107..22f03da485 100644
--- a/src/qemu/qemu_block.c
+++ b/src/qemu/qemu_block.c
@@ -2479,7 +2479,8 @@ qemuBlockStorageSourceCreateFormat(virDomainObjPtr vm,
     g_autoptr(virJSONValue) createformatprops = NULL;
     int ret;
 
-    if (src->format == VIR_STORAGE_FILE_RAW)
+    if (src->format == VIR_STORAGE_FILE_RAW &&
+        !src->encryption)
         return 0;
 
     if (qemuBlockStorageSourceCreateGetFormatProps(src, backingStore,