The month of March is approaching, and therefore also the dates on which the informative declaration of Model 720 must be submitted. This refers to assets and rights abroad of people who are tax residents in Spain, if any of the established thresholds are exceeded. No tax is payable, it is for informational purposes.
The categories of assets and rights that are declared in this form are:
- Real estate
- Bank accounts
- Investments (shares, participations, investment funds, bonds, etc.)
- Cryptocurrencies
The thresholds to take into account are:
- If this declaration has never been submitted before, there will be an obligation to submit it when the value of the assets and rights abroad, for any of the categories mentioned, on December 31 of the previous year, is greater than €50,000.
- If a Form 720 has already been submitted previously, for any of the categories mentioned, There will be an obligation to file again when there is:
- An increase of more than €20,000 compared to the last declaration filed. This increase is considered for each category independently.
- A sale or cancellation of any previously declared asset or right.
In addition to the previous summary, it is important to keep in mind the following specificities:
- Spanish companies that have assets abroad must have them well individualized in their accounting. In the case of investments, they must be included in their balance sheet with the ISIN code of each one.
- People who are tax residents in Spain under the Beckham Law are exempt from filing this declaration.
- For those who have cryptocurrencies, the filing is done using a separate form (Form 721).
- The penalty regime for not filing or filing incorrectly changed a few years ago, following a ruling by the CJEU. Although the sanctioning regime is less onerous than before, it still exists and failure to comply with the obligation to submit and declare correctly implies a risk of sanction.
- Some assets and rights that do not have an equivalent in Spain, for example IRAs in the USA or ISAs in the United Kingdom, must also be declared, as if they were life insurance.
If you have any doubts regarding your obligation to submit this form, or how to do it, I am at your disposal to comment on it or analyze it when you consider it. Don’t miss the deadline.