Form 720 Penalties Regime: Approved Modifications

The approval of Law 5/2022, of March 9, has finally introduced the changes in the penalties of Form 720, declaration of assets and rights abroad, adapting to the provisions of the recent Judicial Decision of the Court of Justice of the European Union (hereinafter, “EUCJ”) of January 27, 2022, by which the court ordered the disproportionality of the penalties of this Form. 

Consequently, the following aspects are modified:

  • The consideration of a very serious penalty of 150%: previously the First Additional Provision of Law 7/2012 established that a very serious penalty could be considered with a proportional pecuniary fine of 150% of the base amount of the penalty. This Additional Provision is repealed so that the gradation of sanctions will be governed by the general regime of the General Tax Law.


  • The non-prescription of unjustified capital gains: previously article 39.2 of the Personal Income Tax Law established that these gains would be integrated into the general taxable base of the oldest of the non-prescribed years, even if the gains came from years already prescribed. This article is modified so that the usual limitation period of 4 years will also be taken into account for these gains.


  • Fixed fines of between €100 and €5,000 per piece of information: previously the Eighteenth Additional Provision of the General Tax Law established a specific sanctioning regime for Form 720 that was very burdensome and implied the imposition of fines between €100 and €5,000 for each data that had not been declared or that had been declared incomplete or inaccurate. This Additional Provision is modified, so that the obligation to present Form 720 is maintained, but the penalties will be governed by the general regime of articles 191 and following the General Tax Law.


With this, the Spanish legislation adapts to the case-law of the European Union regarding the penalties of Form 720, although this form is still in force and the obligation to submit it is not modified.

For any related matter, do not hesitate to contact our tax advisors in Barcelona by email or phone.

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