Spain Explained

Time to update your 720 form in Spain

Last year was the first year in which the form 720 had to be presented by those residents in Spain with assets abroad. If there have been no changes in your circumstances since you presented your 720 last year you will not need to submit a form this year.

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However, you will need to complete a form for the year 2013 if:

*             You are a new resident in Spain and this is your first tax year

*             You did not declare for 2012

*             There has been an alteration in your circumstances such as:

o   You have purchased or sold Spanish property

o   Investments have matured

o   You have changed account numbers

o   You have cancelled previously declared assets

*             Your assets have increased or decreased by €20,000 or more

The 720 form in Spain will need to be completed during the first quarter of 2014 (1st January – 31st March).

A reminder

The three groups of assets include:

Group 1: accounts held abroad where the total balance of all the accounts exceeds  €50,000

Group 2: other assets and pensions held abroad exceeding €50,000 in value

Group 3: property or business premises abroad

Private and company pensions

There has been a lot of confusion reported in the free papers about whether the 720 includes private and company pensions. We can confirm that these are included and do need to be declared if their capitalisation value exceeds the €50,000 limit. For example:

Date of Birth

Age

 Annual Income in €

Capitalization

720

1945

67

                  10,000 €              55,000 €Yes

1945

67

                    8,000 €              44,000 €No

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What you should do next

If you completed a form 720 last year and there are no changes that you need to report then there is nothing you should do just yet. You will need to present your Spanish resident income tax declaration for 2013 as usual next year.

If you need to complete a form then you should contact your fiscal representative in Spain and make an appointment to ensure that you remain compliant.

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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