It has been a few years since the Modelo 720 asset declaration form was introduced, but it can still slip your mind, especially if you have recently moved to Spain. In case you are one of the people that is not aware of this important form, the 720 is a form which some foreigners living in Spain have to complete. It is a record of their assets of a specified value and type held in other countries. Over the years, it has caused some confusion and some anxiety about what this declaration might lead to.
Today, the Modelo 720 is far less controversial. Gone are the days of free newspapers and expat forums flooded with questions, concerns and criticism; instead, people are coming to accept that this is a standard part of their Spanish tax obligations. In many ways, it has gone extremely quiet out there – but don’t let this lull you into a false sense of security. The deadline to submit your Modelo 720 is 31st March.
If you have recently moved to Spain, you will need to declare your assets if they are above a certain value. Meanwhile, residents in Spain who have completed a form previously will need to reconsider their declaration. If your circumstances have changed, you may need to resubmit your form.
Be confident about your Modelo 720 obligations
If you have never submitted a Modelo 720 before and you have property, assets and investments abroad over the value of €50,000. These include:
- Bonds, investment portfolios, stocks and shares, pension plans and active annuities.
- Property or businesses based abroad.
- Foreign bank accounts with deposits and savings of a balance greater than €50,000.
If you have previously submitted a Modelo 720, you may need to resubmit if your circumstances have changed. Even if you feel pretty sure that you do not have to file again 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 and ask yourself if any of the following applies to you:
- 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 or more.
If it does, then you should contact your fiscal representative in Spain and renew your form as soon as possible.
Why it’s better to be safe than sorry
However, changing circumstances are not the only conditions under which you may have to file your Modelo 720. For instance, you may have never declared but want to ensure that you are fully compliant with the conditions. There are still people who have not declared and perhaps on hindsight would like to ensure that they are complying with the requirement. When it comes to the 720, “better late than never certainly applies”. After all, the fine for late declaration is much less than if you are found out.
Contact your fiscal representative
If you have 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. For more information about how to correctly complete and submit your form, get in touch with one of our fiscal representatives. They will be able to give you comprehensive, expert advice on your tax obligations in Spain.