This is an important tax form that all citizens of Spain and all foreigners residing in Spain that hold assets in another country are required to complete. The Modelo 720 form form outlines what, if any, assets are held outside of the country. The contents revealed on the form are for information and fraud detection purposes only. The signatory is not liable to pay any extra tax on the basis of this form. The form is essential and you could be subject to large fines for failure to complete it.
The form has a deadline of between the 1st January and 31st March of the year following the information represented. The purpose of the form is to declare any assets owned outside of Spain with a value greater than €50,000. Unless your circumstances change, such as in an increase in earnings, then you will not have to submit the form again. This applies only if the value of the asset increases by at least €20,000 or more. Otherwise, you only need to submit the form once.
Who should complete modelo 720?
People who hold bank accounts abroad – Bank, deposit and savings accounts with a balance greater than €50,000 that are held in the name of the person completing the form. This also applies where the signatory is an authorised representative or beneficiary of the account.
People who hold assets and private pension funds abroad – Those who hold bonds, investment portfolios, stocks and shares, pension plans and active annuities over the value of €50,000 will need to complete the modelo 720.
People who own a property or business abroad – Those who own property outside of Spain, include property for business purposes over the value of €50,000 must declare so on the modelo 720 form.