If you’re resident in Spain and own assets abroad, you may need to fill out and submit Modelo 720. This form that declares said assets involves a simple procedure and avoids your liability for fines for not declaring assets outside Spain. In this guide, we look at who needs to submit the Modelo 721 as well as other useful information about this form.
What is The Modelo 720?
It’s a form that declares the ownership of assets outside Spain. Think of it as an information document for the Spanish tax authorities. It is not a form to pay tax and by submitting it, you are not necessarily liable for taxes.
Who Has to Submit Modelo 720?
The following people and entities must fill in and submit the form:
- Spanish residents who own assets outside Spain worth over €50,000.
- Spanish businesses that own assets outside Spain worth over €50,000.
- Non-residents or businesses with a permanent base in Spain owning assets outside Spain worth over €50,000.
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What Counts as Assets for Modelo 720?
In the case of this declaration, the following assets are included:
- Holdings such as bonds, stocks and shares, and pension plans.
- Real estate and/or businesses.
- Bank accounts.
Did you know? If your assets abroad are worth less than €50,000, you do not have to submit Modelo 720.
How Often Do You Submit Modelo 720?
All Spanish residents and entities or non-residents or businesses with their base in Spain must submit Modelo 720 when they become resident. You only need to submit the form again if your financial circumstances change (see below).
Is There a Time Period for This Declaration?
Yes, the Modelo 720 should be filled in and submitted between January 1st and March 31st. The same time period is open every year.
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What Sort of Changes Do I Need to Declare?
You need to submit a new Modelo 720 if your assets abroad change by over €20,000. For example, you may have an investment that matures. Or you might sell a property.
All these changes, however small, need to be reflected in your new Modelo 720.
How Do I Submit My Modelo 720?
This declaration can only be presented online via the Spanish Tax Authorities website. Read information in English about Modelo 720 here.
At Costaluz Lawyers, we advise using the services of an experienced tax advisor to help you with this declaration and ensure that you present it correctly. Contact us for a free consultation.