Spain Explained

The 720 asset declaration form

Last updated on December 30th, 2021 at 01:15 pm.

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 a substantial fine.

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.

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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 that are currently being paid. You are in this category if they have either a total value or a surrender value on the 31st 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 substantial. They include:

  • Non-presentation/ false information – fine of 5,000€ for every piece of information with a minimum fine of 10,000€
  • Late presentation/ form wrongly presented e.g. not presented electronically – fine of 100€ for each piece of information with a minimum fine of 1,500€

Late presentation only refers to those asset declarations that are voluntarily presented and not those prompted by demands from the Spanish Tax Authority.

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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 31st March.

The 720 is for information purposes only but the penalties are just too great to ignore.

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

Contact us on (+34) 96 670 3748 or Request a Call Back.

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1 January, 2022 9:45 am

As both my wife & I are in our mid 70’s am I correct in assuming we are not liable for tax on the sale of a studio in th UK, we both are residents in Spain & the sale realised £80k ( less estate fees/ solicitor fees of £2,300-00.
We are clients of ABACO &an annual fee is paid.

Oscar Paoli

4 January, 2022 9:34 am

Hi there,

As the property is not your residential home here in Spain there are no deductions in any possible Capital Gains Tax.

Please do not hesitate to contact us should you have any further queries.

With kind regards,

Ábaco Advisers