The 720 asset declaration form (and NEW 721 FORM!!)

Last updated on November 27th, 2023 at 11:36 am.

Every resident who has assets outside of Spain that total over 50,000€ within any one group, must complete the asset declaration form in Spain before the deadline or risk incurring fines.

The groups are:

• bank accounts (group 1)
• pension plans and investments (group 2)
• property (group 3)

In this article we will go through some relevant information regarding the 720 asset declaration form. However, we would like to remind you that taxes in Spain can be complicated and you could be subject to fines or penalties if you miss a deadline or don’t do your taxes properly. Advisably, you should seek fiscal advice from an expert to avoid possible complications.

I have assets, must I declare them?

What has confused some people is that the types of assets they must declare against can be divided into three groups:

Group 1: accounts held abroad where the total balance of all the accounts exceeds €50,000. This total is not divisible between account holders. This includes bank, savings and deposit accounts where you are the account holder or have had authorisation over the funds.

Group 2: other assets and pensions held abroad exceeding €50,000 in value. This includes bonds, stocks and shares, life insurance, pension plans and annuities. You are in this category if they have either a total purchase value or a surrender value on the 31^st December of €50,000 or more. We can confirm that private and company pensions currently being drawn are included in this category if their capitalisation value exceeds the 50,000€ limit.

Group 3: property or business premises abroad. This applies to you if you live in Spain but still own a business or house in another country whose purchase value was more than €50,000.

Who needs to complete it this year?

If you completed the 720 last year and your circumstances have not changed then there is no need to complete one this year.

You should complete one this year if:

• You are a new resident in Spain and this is your first tax year
• You did not declare previously and should have
• There has been an alteration in your circumstances such as:
  • You have purchased or sold property
  • Investments have matured
  • You have cancelled, closed or sold previously declared assets
  • Your assets have increased by 20,000€ or more of total assets in any of the groups previously declared
  • You declared last year, but this year have reached more than 50,000€ in a previously undeclared category

What will happen if I don’t?

The fines published by the Spanish Tax Authority are those of the general taxation law.

What should I do next?

The form is not easy to complete and requires a ‘signature’ to do so. Most people need to engage with a fiscal representative to help them complete it. The next deadline is the 31^st March.

The 720 is for information purposes only.

We invite you to a FREE consultation with a tax specialist in your language:

• Opportunity to ask questions about resident tax – what should/ shouldn’t you be paying?
• Clarify what’s happening with the 720
• Bring your tax declaration – not everyone explains it quite like we do!
• No obligation and completely confidential

NEW 721 FORM!!

The Tax Agency has approved for the fiscal year 2023 the new model 721 “Informational Statement of Cryptocurrencies Located Abroad.”

It must be completed by residents who are holders, authorized individuals, beneficiaries, or have the power of disposition over virtual currencies, provided that they are held by a foreign exchange investment company or entities that provide services to safeguard cryptographic private keys on behalf of third parties. The value of the investment or “wallet” must be at least €50,000.

If you have any queries or need assistance with the 720 and 721 Form do not hesitate to contact us on (+34) 96 670 3748 or Request a Call Back.