Last year around this time, there was great consternation amongst many foreigners living in Spain. The requirement to complete the 720 asset declaration form really shook the community. In case you are blissfully unaware, the 720 is a form on which foreigners living in Spain must record assets of a specified value and type held in other countries. There was confusion and a great deal of suspicion about what declaring this information might lead to.
Now, a year later and the second round of the Spanish 720 is not proving to be quite so controversial. Whereas last year the free newspapers and forums were flooded with questions, concerns and criticism, this year there is more of a mood of quiet acceptance. People might not be happy with this additional administrative burden, but for most it’s done and dusted.
However, for some, the 720 will need a spring clean. Residents in Spain who have completed a form previously, will need to reconsider at this time every year whether their circumstances have changed and warrant a new form being registered. In this article we will cover all these topics. 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.
Reasons for completing a 720 in 2014
Even if you feel pretty sure that you do not have to resubmit your form this year, do check against the list below. Keeping your 720 up-to-date is as important as submitting it in the first place. Take time to reflect, does any of this apply to you?
- There has been an alteration in your circumstances such as:
- You have purchased or sold property abroad
- Investments have matured
- You have changed account numbers
- You have cancelled previously declared assets
- Your assets have altered by 20,000€
If it does, then you should contact your fiscal representative in Spain and renew your form as soon as possible.
It’s not just where circumstances have changed that a 720 might need completing in 2014. There are still people out there who did not declare last year and perhaps on hindsight would like to ensure that they are complying with the requirement. After all, those who did have lived to tell the tale and the fine for late declaration is much less than if you’re ‘found out’.
Another group who will need to register their assets in 2014 are those who moved to Spain during 2012. You will need to complete the 720 if:
- You have accounts held abroad where the total balance of all the accounts exceeds 50,000€
- Other assets and pensions held abroad exceed 50,000€ in value
- You have a property or business premises abroad
If you’ve realised that this applies to you, don’t panic. There is still time to complete a new form as the window runs from 1st January to 31st March. By next year, who knows, we might be taking the 720 in our stride and wondering what all the fuss was about.
To help navigate the bureaucracy of the Spanish tax system, our dedicated advisers are on hand to help at every step of the way. Fill out this short form and we will offer you a free consultation without obligation.