Modelo 720, assets report for residents in Spain.
Between January and the end of March , all residents with assets abroad need to file a tax form called Modelo 720, assets report for residents in Spain over the previous tax year.
This modelo 720 is in place since January 2013, starting in 2013 with reporting over the year 2012. This Modelo 720, assets report for residents in Spain has become compulsory for all Spanish nationals and foreign nationals being tax residents in Spain.
This Model 720 is for all tax residents in Spain with more then 50.000,-€ abroad in bank and savings accounts, properties and/or investments, obligations, deposits, annuities, etc.
The assets to declare are divided into 3 groups, bank accounts, property and bonds/annuities and deposits. If in 1 of the 3 groups you have over 50.000,-€ then you need to report this to the Spanish Tax office using Modelo 720.
This Modelo 720 is for your assets worldwide, meaning everything you own worldwide, beside your assets in Spain.
For new residents, meaning people that have become residents in the previous, being residents in Spain for that previous for 6 months and 1 day, have to report their assets abroad in running year. This Modelo 720 needs to be done over your assets on the 31st of December of the previous.
For the tax residents that already have reported their assets to the Spanish tax office before, they only need to report when in the tax year, if there has been a change in their assets abroad for a sum larger than 20.000,-€ in one of the above groups.
For all other residents in Spain, that did not report their assets before, but in the tax year their assets abroad have grown over the limit of 50.000,-€, in one of the described groups, have to report in the year corresponding to the year to declare. You always declare this report over the previous year.
Please be aware that the Spanish tax office gives heavy fines to tax residents in Spain not reporting their assets abroad! The tax offices in Europe since a few years are working closely together, sharing data about nationals working or living abroad about taxation and assets. Not declaring might get you into troubles, when the tax office founds out about any undeclared assets in other countries.
If you have any questions about Model 720 or taxes in Spain, please contact us!
