Spain Explained

Time for the Spanish 720 again

It’s two years ago that foreigners living in Spain were first introduced to the 720 asset declaration form. 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. Over the years there has been some confusion and a great deal of suspicion about what declaring this information might lead to.

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Now, two years later and the Spanish 720 is proving to be much less controversial. No longer are the free newspapers and forums flooded with questions, concerns and criticism. In fact, it’s gone extraordinarily quiet out there. However, that doesn’t mean that the requirement has gone away.

Residents in Spain who have completed a form previously, will need to reconsider at this time every year whether their circumstances have changed and whether this warrants a new form being registered.

Reasons for completing a 720 in 2015

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 2015. There are still people who have not declared 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’.

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Another group who will need to register their assets in 2015 are those who moved to Spain during 2013. 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 any of 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. Make it your new year resolution to keep compliant in Spain.

To help navigate the bureaucracy of the Spanish tax system, our dedicated advisers are on hand to help at every step of the way. Contact us and we will offer you a free consultation without obligation.

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26 comments

Brenda burgess

11 February, 2015 12:57 pm

We made a 720 declaration in
We made a 720 declaration in 2013. We did not make a declaration in 2014 as nothing had changed and the categories had not increased by 20000. Now however the categories have increased by over 20000 since the first year. Is this 20000 increase based on one year or two? Ie if it is only over 20000 not 40000 in two years must we renew our 720.?

admin

12 February, 2015 1:18 pm

Dear Brenda

Dear Brenda

Thank you for your query. It is based on the 20,000€ from the 2012 declaration, it is not 20,000€ per year. Therefore you will need to complete a new 720 this year. 

Mike

24 March, 2015 1:34 pm

I had my 720 form submitted
I had my 720 form submitted late and now I’m involved in an investigation where I will be asked to pay a massive amount of money for late submission.
I have been told that this has been taken to the European Courts as being abusive.
Can you confirm the procedure to submit this to the Agencia Tributaria, as I have been informed that this will in effect put the fine on hold until the courts decide what to do about this gross misjustice.

Suzanne O'Connell

25 March, 2015 9:13 am

Dear Mike

Dear Mike

Thank you for you enquiry and I am sorry to hear this. It seems as though they are starting to issue fines. You will need to take advice from your tax representative but it is likely that you will have to pay in the short term. If the case is won in the European courts then you should be able to claim back, like some non-residents are claiming back the amounts paid for non-resident inheritance tax. 

You might be interested to read this article recently published in On The Pulse: 

click here

 

Paul

19 April, 2015 5:50 pm

we moved to Spain in 2014.
we moved to Spain in 2014. Should we have filled in the form for 2014 as we haven’t even needed to do a tax return yet. We have spoken to one abogado who really scared my wife saying that as we have missed the deadline if we submit the form now they will fine us up to 150% of the value of our foreign assets. Obviously this is more than everything we own.

Suzanne O'Connell

6 May, 2015 9:34 am

Hi Paul

Hi Paul

I don't think you are the only person in this kind of predicament and it isn't an easy one to resolve. If you were a tax resident in 2014 and here for more than 183 days you will be going to do your first income tax return now before the end of June. If this is the case you should already have done the 720. 

if you were to file a late 720 you would be fined 100€ for each piece of left out data with a minimum fine of 1,500€. The 150% of the fine is if the client cannot prove that the money is taxed money. Many consider these fines to be so steep that they may well be challenged if applied. 

Robert

26 May, 2015 1:55 pm

I assume you mean 2015 in the
I assume you mean 2015 in the article?

“”Another group who will need to register their assets in 2015 are those who moved to Spain during 2013. You will need to complete the 720 if:””

Suzanne O'Connell

30 May, 2015 6:47 pm

Dear Robert

Dear Robert

If you moved to Spain the later part of the year 2013, then you are a tax resident in Spain for the first year in 2014. To do the 720 for the year 2014 was in the period January – March 2015. 

 

Robert

6 June, 2015 6:25 am

In Modelo 720, if you have
In Modelo 720, if you have more than 50K abroad on lets say 4 different accounts, do you also have to declare an acoount that has zero euro on it?

Suzanne O'Connell

1 July, 2015 10:34 am

Dear Robert

Dear Robert

Yes you do have to declare this. 

Alan Palmer

5 October, 2015 8:04 am

Should premium bonds be
Should premium bonds be included on the Modelo 720?

Suzanne O'Connell

7 October, 2015 10:44 am

Yes, Alan, we believe they

Yes, Alan, we believe they should. 

don

3 December, 2015 8:57 pm

my wife and i have lived in
my wife and i have lived in spain since 2007 and have never filled in a tax return here in spain, as we only get our uk state pension which i believe is taxed at source, now we are selling our house we have been told we have to pay 3% tax on the sale price, seems very harsh on pensioners

Suzanne O'Connell

9 December, 2015 1:00 pm

Hi Don

Hi Don

The reason you have had to pay the 3% is because you never filled in a tax return. Residents do not have the 3% retention if they have submitted three years of tax declarations. In your case, the authorities must have decided that there was insufficient proof of you being resident in Spain. It is one reason why we do enourage residents to make a tax declaration even if it is a zero return. Provided you have no capital gains tax to pay you should be able to claim back the 3%. 

Anthony Mitchell

5 January, 2016 12:10 pm

Hello,
Hello,
Does a property bought in 1989 for the equivalent of €30,000 approx and whose current market value is more than €50,000 have to be declared?
The description of the obligation refers often to the ‘valor de adquisición’ or purchase price. So I am confused.
Thank you for the very informative page.
Yours
Anthony

Suzanne O'Connell

5 January, 2016 12:40 pm

Hi Anthony

Hi Anthony

Property comes into the 'group 3' category of 'property or business premises abroad'. You need only declare these on the 720 form if the purchase value was more than €50,000. In which case you do not need to declare your property. 

 

Olli Arnold

12 January, 2016 4:13 pm

Hi, I´ve read the info on the
Hi, I´ve read the info on the 720 thoroughly but I´m still confused by the fact that the spanish government charges me for capital I´m holding in other countries. Did I get that right?
I´m a german citizen. I own several apartments in Germany which I rent out. The german government charges not only property tax for the real estate I own but also income tax for the rent I collect.
I´m considering settling in Spain as a permanent resident and buying property there. Would that mean that from the moment I live in Spain I´m taxed twice on my german property, since both the spanish and the german government will tax me? If so, I find this supremely unfair.

Thanks kindly for your response! Olli Arnold

Suzanne O'Connell

13 January, 2016 12:03 pm

Hi Olli

Hi Olli

Thanks for your query. The form 720 is for information only and is not a tax form as such. It is used to collect information about the assets that people living in Spain hold abroad.

Spain has a dual tax agreement with Germany. This means that if you should come to live in Spain you will have to declare your income here but you should not be taxed twice. 

Mandy Thompson

13 January, 2016 7:20 pm

What should I do if I haven’t
What should I do if I haven’t completed a modelo 720 before but have an account that has around 60000 euros in it abroad for the past two years? Can I make a late declaration or should I just declare it this year? My income in spain is below 12000 euros so I’ve not filled in a tax return since 2012.

Suzanne O'Connell

19 January, 2016 9:56 am

Dear Mandy

Dear Mandy

It could be, depending on the exchange rate at the time, that your €60,000 in 2012 did not exceed the £50,000 limit. However, if it did and you want to put matters straight then you must present the form 720 for 2012 now. This will mean that you will have a fine of €100 for every left out detail with a minimum fine of €1,500. It depends on how many accounts haven't been declared as to the total cost of the fine. 

It is also worth noting that as long as you are a tax resident in Spain your are obliged to present the 720 form if you have assets abroad, even if you are under the limit of having to present the normal income tax return. 

 

Peter Franke

15 February, 2016 3:02 pm

Hi, I declared a form 720 in
Hi, I declared a form 720 in 2013. I would like to know if I should renew the form if f.e. I had (and have and declared) two bank accounts in 2013, one with 54.000 euros and one with 1.000 euros and now (in 2015) I have transferred 40.000 from the one bank account to the one that originally had only 1.000 euros in it. So the total sum doesn’t change, the number of bank accounts doesn’t changed, I only moved it from account A to account B. Do I need to renew? Another question: do I need to renew when I’ve opened a third bank account in 2015? Thanks for clearing things up!

Suzanne O'Connell

16 February, 2016 10:59 am

Dear Peter

Dear Peter

You only have to declare the same group again if the total amount has gone up by €20,000. So if you move money around or open new accounts you don't need to declare again if the total amount has not gone up. If you close an account but the amount doesn't go up then you do have to make another declaration but only on the closed account. For a non-declared group the limit is €50,000. 

tony

29 February, 2016 10:13 pm

I moved to spain in oktober
I moved to spain in oktober 2014 and got my residence in december 2014, I didn’t know I had to fill in modelo 720..friends told me I have to fill in the modelo 720.. I called a gestor and he said you are to late now it is 2016 and you will receive a fine for not declaring in 2015 jan /march 2015..if I fill in the modelo 720 form right now do I receive a penalty ? please advice…

Suzanne O'Connell

1 March, 2016 12:33 pm

Dear Tony

Dear Tony

I'm afraid you will receive a fine for handing it in late. However, this is less than the fine for not handing it in at all if it is discovered that you should have presented one. You still have time to complete the form this year and prevent it drifting on for another year. 

Helen

6 April, 2016 10:58 pm

Hi, my husband and I moved to
Hi, my husband and I moved to Spain in September 2015. My husband became a resident last month (March 2016). Is he late with the 2016 720 form and be fined or does he not need to submit until 2017 having only just become a resident? I do not work in Spain, I work for a UK company so have not yet become a resident. I have read that it is mandatory to become a resident if you live in Spain for more than 6 months a year. Some research I’ve done says for consecutive days. I travel to the UK for a week every month (roughly). Do I have to become resident? If so, how do I declare my UK income (which is fully taxed in the UK) and avoid double taxation?
Many thanks.

Suzanne O'Connell

14 April, 2016 9:25 am

Dear Helen

Dear Helen

If your husband became a resident in 2016 then he doesn't have to make the 720 asset declaration for 2017 anyway. The 183 days do not have to be sequential so be careful of this. For more information on your personal circumstances I would contact a tax advisor.