MODEL 720, Informative Declaration of Assets and Rights Located Abroad

Model 720

Below, we provide a high-level explanation of what Model 720 is, who must file it, and the obligations it entails

Learn everything about Model 720, the mandatory declaration for tax residents in Spain with assets abroad

OBJECTIVE

With the aim of eradicating tax fraud in Spain, the government launched a package of measures (Model 750, Model 250, cash payment limitations…), including the Model 720 declaration. This declaration was introduced to bring to light all income and assets that their owners had not previously reported in their tax returns.

TAXPAYERS OBLIGATED TO FILE

• Tax residents in Spain (both individuals and legal entities) not subject to the Special Regime for Expatriate Workers.

• Permanent establishments (PE) located in Spain belonging to non-resident individuals or entities.

• Entities under Article 35.4 of the General Tax Law (e.g., estates pending distribution, joint property entities, and other entities without legal personality).

ASSETS AND RIGHTS TO DECLARE

• Accounts in financial institutions located abroad with a balance exceeding €50,000, provided the taxpayer has been or is a holder, representative, authorized person, beneficiary, or proxy at any point during the year.

• Securities, rights, life or disability insurance policies, and life annuities or temporary annuities managed or obtained abroad, with a total value exceeding €50,000.

• Real estate properties and rights over real estate located abroad, with a value exceeding €50,000.

METHOD OF FILING

The declaration must be submitted exclusively online, using an electronic certificate.

FILING DEADLINES

The submission period is between January 1 and March 31 of each year.

As an exception, for the year 2012, the filing period was from February 1 to April 30, 2013.

PENALTIES – WERE YOU REQUIRED TO FILE THIS DECLARATION AND DIDN’T KNOW IT?

The penalties for non-compliance with this requirement are extremely severe. Given the ongoing exchange of financial data between the Spanish Tax Agency and numerous countries both inside and outside the European Union, it is highly likely that undeclared foreign assets will be detected.

Due to the meticulous nature of this declaration, it is highly advisable to seek professional assistance to ensure accurate preparation and submission.

If you need support, whether to regularize your situation or to prepare the declaration for the corresponding tax year, we offer our expertise in this field.

You can contact us by clicking here.