720 form: Tax Declaration of Assets out of Spain

Form 720 of Declaration of assets abroad obliges taxpayers resident in Spain, both natural and legal persons, to file an informative declaration on certain assets located abroad. The campaign of the Model 720 of Declaration of goods abroad relative to the 2019 fiscal year begins, its filing period ends on March 31, 2020.

Who must file the 720 form?

As a general rule, the natural and legal persons and entities indicated below who are owners of goods and rights located abroad that determine the obligation to file the declaration are obliged to declare goods and rights abroad of more than 50.000€ value :

a) Natural and legal persons residing in Spanish territory.

b) The permanent establishments in said territory of non-resident persons or entities.

c) The entities referred to in article 35.4 of General Tax Law 58/5003, of December 17 ( recumbent inheritance, communities of property, etc.).

d) The owners of the goods and the representatives, authorized beneficiaries and people with powers of disposal.

You only declare in the year that your assets exceed €50,000. You only have to re-declare if you sell your assets or if they increase by more than €20,000.

What information do I have to include in the 720 form?

The declaration will include a record for each property located abroad:

C: Accounts opened in entities that are dedicated to bank or credit traffic and are located abroad.

V: Securities or rights located abroad representative of the participation in any type of legal entity, securities located abroad representative of the transfer of own capital to third parties or contributed for its management or administration to any legal instrument, including trusts and ” trusts ”or patrimonial masses that, despite lacking legal personality, may act in economic traffic.

I: Shares and participations in the capital stock or patrimonial fund of Collective Investment Institutions located abroad.

S: Life or disability insurance and temporary or life annuities, whose insurance entities are located abroad.

B: Ownership and real rights over real estate located abroad.

When do I have to declare again?

Concerning taxpayers who have filed Form 720 in previous years, there will be an obligation to file a statement regarding this year when any of the following circumstances occurs:

a) The extinction occurs this year with respect to any element that has been previously declared in the 720 Models of previous years.

b) When the acquisition of new assets or items abroad occurs during this year that entail the obligation to file the declaration, or the threshold of 50,000 euros of joint valuation is exceeded for the first time with respect to any of the subject groups of assets to this obligation.

c) There is an increase of 20,000 euros or more in the joint valuation of any of the groups of assets mentioned above, with respect to the joint valuation that said group of assets had in the last declaration of Form 720 presented.

How do I file the 720 form?

Form 720 must be filed electronically via the Internet, either made by the declarant himself or by a third party acting on his behalf. Failure to do so carries the following penalties:

What is the penalty if I do not file my tax from?

a) Penalty of 5,000 euros for each data in the event of non-compliance with the obligation to report accounts in credit institutions located abroad, with a minimum of 10,000 euros.

b) The sanction of 100 euros for each data or set of data referring to the same account, with a minimum of 1,500 euros, when the declaration has been submitted after the deadline without prior request from the Tax Administration.

c) Non-presentation will be considered a tax offence and will be sanctioned with a proportional monetary fine of 150 per cent of the amount of the base of the sanction.

Of course, Asesoria Orihuela Costa will help you to file your tax form 720, get in touch if you have any questions.